Recently, a few people have approached Canwest Accounting for advice regarding buying or selling a business.
“Both acquiring and selling a business involve a number of important steps and you should contact an accountant and lawyer for assistance,” says Sharlane Bailey, Owner of Canwest Accounting.
When buying a business, an accountant can:
- Review the financial statements for you;
- Provide advice on financing the purchase;
- Go over whether it’s better to buy shares or assets;
- Advise on whether the selling price seems reasonable;
- Help ascertain the amount of accounts receivable on the books;
- Help you determine areas for growth through providing insight on cash flow patterns, inventory management, and pricing;
- Offer advice on property and equipment leasing and purchasing; and
- Provide you with a recommendation based on the company’s financial records.
When selling a business, an accountant can:
- Provide a business valuation so you know what to ask for;
- Ensure your financial statements are up to date;
- Structure the deal after discussing with the client the opportunities and drawbacks of an asset versus a share/stock sale;
- Minimize tax implications;
- Research and create a risk evaluation of prospective buyers.
“One of my favourite parts of helping people with buying or selling a business is that we’re often helping people to achieve their dreams,” says Bailey. “At one end of the spectrum someone is pursuing or expanding owning their own business and at the other end someone who has worked hard to build a successful business may be planning to retire to chase their retirement dreams of travel or spending more time on hobbies and with loved ones.”
The friendly staff at Canwest Accounting’s offices in Victoria and Langford can help advise you on your future steps, whether you are buying, selling, or looking to grow a business.
The suggestions and advice provided by Canwest Accounting should not be relied upon in place of professional advice. You are responsible for checking the accuracy of relevant facts and opinions provided.