Business Brokering and Commercial Real Estate is Booming
As Canada greys, the business landscape is on the cusp of a tectonic shift – and it appears retiring entrepreneurs aren’t prepared. Canadian Baby Boomers are now between the ages of 50 and 70, and they happen to own 60% of businesses.
Meaning sellers will have more competition, and buyers will have more opportunity. This will increase the demand for professional Business Brokers.
Here are a few pitfalls business owners are facing:
- Lack of financial statements that show strong performance
- Far too much inventory on hand
- Not ready to provide a proper tour of their business
Many business owners are not properly prepared to exit their business and they’re unsure about how to move forward.
Some of the questions they ask:
- How do you protect confidentiality?
- How do you know a potential buyer is legitimate?
- What is my business worth?
- How long will it take to sell?
- Do I want to sell the business to a third party, or explore other options?
- What are my other options?
- How much do I need from the sale to sustain my standard of living through retirement?
- What price do I need to yield those funds?
- How can I show the true value of my business?
This is where the Expertise of a Business Broker comes into play.
When business owners are getting ready to sell, they need you to guide them on how to continue investing in their business, boosting their profits, pursuing growth and sharpening their competitive advantage. A professional Business Broker understands the value of their business and knows how to negotiate the best value.
A recent study by the Business Development Bank of Canada, points to a massive turnover in the ownership of small businesses across the country over the next five years. Simply put, 4/10 entrepreneurs in Canada are likely to leave their businesses within the next five years, up from 1/3 in the mid-2000s. The main reason is retirement.
60% of those who own small and mid-sized businesses are 50 years or older. More people are turning to a Business Broker for expert advice on all fronts, including properly valuing their business and getting their business ready to market.