Assessments of your small business’ value will depend on several factors. In general, this evaluation will take into account the business’ cash flow, the value of business assets, the length and rent of the lease term, the location, and current market factors. For a free and confidential expert assessment, please contact Roger at 604-307-8288.
Your due diligence should include reading all available financial statements going back at least three years, if available; the list of all included equipment and business licenses and permits; and ensuring that you have read and completely understood the lease agreement and/or franchise agreement, if any.
Although a lawyer is not required for buying and selling businesses, it is highly recommended that you retain one. Lawyers can help perform due diligence, incorporate your business, background check, and explain and advise of the legal risks and benefits involved in all business transactions.
Other than the purchase price, you can commonly expect to plan for PST on equipment, inventory purchase fees, the landlord’s security deposit, administration or assignment fees for the lease, licensing fees, franchise transfer fees, insurance, and lawyer fees, if applicable.