Selling a business in a Small Ontario City Outside Toronto GTA

Selling some types of small and medium size businesses located outside large metropolitan cities can be a lengthy and quite challenging process. Finding the right buyer of a business requires interviewing a large number of candidates and selecting the right fit. This could be easy in a large city like Toronto thanks to its large population and the large number new immigrants coming in  every year, but in a small city the number of candidates is very limited.

There are quite a few implications for business owners who have a good reason to sell their companies and need an exit in a reasonable time. The business owner needs to prepare his/her business quite in advance for an exit. These are some of the preparations that would dramatically increase the chances of selling the business at a reasonable price without having to spend years waiting for the perfect buyer:

• Seek professional advice from experienced business brokers, accountants and lawyers a few years before listing the business in order to prepare the business for the sale.
• Make your business more efficient buy reducing redundant costs.
• Sell unproductive equipment. This will not affect the value of the business but will certainly increase the total proceeds from the sale.
• Optimize your stock and sell any surplus before listing the business. Excess stock requires that the buyer invests more money for the same business without increasing profitability. It’s much easier to find a buyer for a business that has a smaller stock.
• Create documented processes and procedures for your business so that the less skilled employees can still be hired and manage the business. This will not only reduce the operating costs of the business but will make it easier to find a buyer with the right qualifications for the business. Buyers don’t like to depend on highly skilled employees and offer lower prices for employee dependent businesses.
• Hire an Internet capable business broker at the time of selling your business. The Internet became the first medium to reach business buyers. Furthermore, the Internet will bring buyers form large cities as well as new immigrant from other countries who don’t mind settling in a remote area if they can make a good living from the business.
• Finally, be patient. Selling a business located in a remote area will take time, so patience is a virtue.

While challenging, selling a business outside large cities in Ontario is not impossible  but needs discipline,  preparation and patience. The few guidelines we have provided will produce great results if followed diligently.