We offer full business brokerage services and transaction expertise and focus on selling businesses in Western Canada. We are a local firm that likes to get to know each client firsthand - their business, its history, its potential and also the owners themselves as it helps us to sell the business. We specialize in helping in the change over of business ownership and are experienced in many of the aspects of structuring and selling businesses. Our role is to (1) value a business, (2) market that business, (3) help in negotiating the terms and (4) advise and guide buyers and sellers through due diligence and business transfer. We are a success-driven company that gets compensated only when the transaction successfully concludes.
We provide value-added services, far beyond just finding the buyer - we guide clients on how business valuations are done, we provide structuring advice, assistance in negotiating, managing due diligence. We also provide access to all related professional and financing services required to complete a transaction.
2014 was a very good year for Reliant Commercial Inc. and the mergers and acquisitions market in general and we are positive about 2015 because:
1. Positive growth forecasts for BC in 2015. With confidence growing amongst business owners and investors who are looking to expand their businesses, acquisitions represent an immediate means of achieving growth.
2. Businesses operating in certain sectors have been doing well now for at least the last 3 to 4 years and so are able to provide confidence to buyers of their sustainability. They are now in a good position to sell and allow the owners to press ahead with their plans to retire or start other projects.
3. There are numerous active buyers with cash funds available to acquire businesses. These buyers rely less on bank lending and are looking for good investment returns.
4. When it comes to larger deals, banks are now keen to lend albeit within certain limits and are still under pressure to do so.
5. There is increasing demand from international buyers for businesses because of the positive economic outlook for BC and the attractiveness of Canada in general as a place to live and work.
Which businesses will sell well in 2015?
Whatever the economic conditions when it comes to sales, mergers and acquisitions in the SME (Small Medium Enterprises) market, certain factors hold true. Businesses which sell well typically have the same traits, they:
• Operate in a niche market with some barriers to entry.
• Have consistent recurring revenue, (ideally with clients on service contracts).
• Have strong profit margins.
• Demonstrate tangible growth and opportunities to expand.
The individuals at Reliant Commercial Inc. work closely with clients until the end of the transaction. From the start we prepare all the marketing material needed to sell a business in a format that stands up to the scrutiny of the most thorough buyer and allows them and their advisors to make an informed decision. Most business owners do not have the expertise to do this. They also do not know where the buyers are. Reliant has been in this business for many years and has an established database of several hundred pre-qualified buyers looking for the right opportunity. We know how best to approach them and how to deal with them as the transaction unfolds.
In the next 10-15 years it is estimated that 70 percent of private companies in North America will change hands - yet most business owners do not have an exit plan. Proper planning to successfully exit a business can deliver tremendous value. In addition no easily accessible liquid market exists for private companies. While the market for private companies is active, you have to know how to properly present a business when selling and how how to identify and how to negotiate with and manage the buyers.
British Columbia has the highest number of small businesses in Canada, which account for 98% of all businesses in B.C. In Canada half the owners of all Small to Medium Sized Businesses are set to retire in the next decade which means that over 300,000 owners plan to transfer control (with an estimated $1.9 trillion in business assets poised to change hands). By 2022 this will grow to $3.7 trillion, as 550,000 business owners plan to exit. If you are considering selling your business, professional advice is certainly useful, if not essential in order to help you decide to whom you sell, at what price and how to negotiate all the terms.
At Reliant Commercial, we are always happy to offer advice on valuation and what performance metrics you need in order to achieve your desired deal value, as well as offer general advice on the various options for exiting your business and when is the right time to sell.
Feel free to contact Christopher Juras on 604.786.2046.