Posts Tagged ‘Koop’n’

We can verskaf’n some different ideas about how to koop’n business in Canada? This is what we were asked recently in an interview that we have to be one of Canada’s leading locations for entrepreneurial success of the business. We think we can, so here’s a recap of the interview. Let’s dig in.

1) What are different ways to koop’n business?

There is numerous ways to the purchase ofâ business vanuit’n financial perspective. They include a vendor take back from the owner, the Canadian Small business loan from the government ( for trade up to 350k) , bank financing for companies that have the assets and cash flow, asset-based lines of credit who earn money to the assets in the business you are purchasing, etc. The type of financing that you use the transaction together is based on the quality of the company you buy from, the personal and business credit of yourself, the size of the transaction, and the borrowers overall perception of risk.

2) How can you evaluate as a business successful?

There are actually two things you have to focus on when the evaluation ofâ potential businesses success. One is, of course, the actual financially, the other is just the insights you need to get into the business beyond the numbers.

Although any financial analysis for business purchase is indispensable bit of beide’n art and a science it is waarskynlik’n little easier than the non financial person might think. And if you nie’n financial type that you can of course rely op’n Canadian business financing advisor, your accountant, lawyer, etc.

a good way to get the size of the financial statements of the business is to just to use what we call ‘ trend analysis ‘. Neem’n some important statistics of the numbers and “spread” them out. They may include sales, changes in a/R and inventory levels, fixed asset growth or do not grow, and the levels of external debt and creditors.

Some of those who do not have financial problems can include analysis of the profit, (or the lack of it!), any problems with lenders and suppliers, the management that is in place, and the way the company marketed and sold its products.

3) What are the pros and cons of the purchase ofâ business?

Companies that have all sorts of problems can often buy vir’n good price. Of course, similar to the stock market there’s a reason why the price for the company (or stock) is so low. Typically they are perhaps losing money or not genereer’n many of the profit, or has some real challenges in the generation of income.

4) What are the different types of businesses that you can buy?

In many ways to the amount of the stocks or your own capital will ry’n final decision to koop’n business. That relates primarily to the size of the enterprise also. In fact the business acquisition industry has some rules of thumb around what you can in fact afford. These typically are called “multiples”, and is based around financial metrics such as sales, or book value of the assets, or cash flow, or … combinations ofâ some of that. Quick example to explain our point? In older times you can often purchase ofâ manufacturing business vir’n multiple of 50% of sales (not juis’n “several” but you get out of the point! Ride mfg. business with sales of 2 Million usd could be typically buy for 1 Million dollars – the acceptance of all the planets in line. (Sometimes they don’t)

5) What is the first thing you should do after the purchase ofâ business?

There’s a great quote by Rod Laver, the tennis player , who once said: “YOU ARE the MOST VULNERABLE is WHEN YOU BEFORE! So after you have in fact has a firm focus op’n smooth transition. Which can include employee issues (quite often they do not know the company sold), the great customer perceptions, Supplier relationships, and your ability to put in the financial controls which allow you to understand what’s going on in the business.

you Can purchase ofâ business successfully in Canada? The answer’s a resounding YES! If you have the right information, team, and strategy in place. Seek out and talk with a reputable, reliable and experienced Canadian business financing advisor who can help you with your overall business finance needs.