We offer full business brokerage services and transaction expertise. We specialize in helping in the change over of business ownership in British Columbia and Alberta, Canada. We are experienced in structuring and negotiating business transactions. Our role is to (1) value a business, (2) market that business, (3) help in the negotiating of the terms of sale and (4) guide buyers and sellers through the process of due diligence and business transfer. We are a success-driven company that only gets compensated once we have found a buyer and the transaction successfully concludes.
We are business brokers that provide value-added services, far beyond just finding a buyer, like business valuations, structuring advice, assistance in negotiating deal terms, co-ordinating due diligence. We also provide access to all related professional and financing services required to complete a transaction. 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 the terms of the deal.
2014 was a very good year for Reliant Commercial Inc. and the mergers and acquisitions market in general.
We are very positive about 2015 and here is why:
1. Positive growth forecasts for BC in 2015. With confidence growing amongst business owners and investors 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 ongoing sustainability. They are now in a good position to sell and thereby allow business 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. Such buyers are less reliant on bank lending and are still looking for better investment returns than cash and an alternative to property.
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 relative to the rest of Canada, BC is seen as good place to invest, even in small to medium sized businesses.
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 strong barriers to entry
• Have consistent recurring revenue, with clients often locked in by a service contract
• Have strong profit margins
• Demonstrate tangible growth and opportunities to expand
The individuals at our comapny work closely with clients until the transaction concludes. From the beginning 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 just do not have the time or the expertise to do this. We also know where the qualified buyers are (we have several hundred in our own database), pre-qualified and 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. In fact only 30 percent of private businesses have done any planning. Proper planning to successfully exit a business can deliver tremendous value. In addition no 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, how to identify and contact the right buyers, and then negotiate and close the transaction.
In B.C. there are 84 small businesses per 1,000 people - the highest rate in the country. Small businesses account for 98 per cent of all businesses in B.C. Within Canada the owners of half of all SMEs are set to retire in the next decade. 310,000 SME owners plan to transfer control within the next 5 years 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.
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.