Buying or selling a business: keeping the trust

Doing what is right

Every day or two there’s news about yet another person in sports, business, or government that’s breached personal or public trust.  Or so it seems.

It stands to follow that the public is losing faith in companies doing what is right.

Some turn their ethics on and off like the lights in their offices or buildings.

As an individual, you have integrity or you don’t.  You can’t just pick and choose according to the circumstances.  It’s the same in business.  Ethical conduct has to apply to everyone in your business and extend to everyone you do business with.  In our case, the behaviours relate to the buying or selling of a business.

You’re either ethical 100% of the time or you’re not ethical.

Why is this business for sale?

Burnout is the top reason people sell their business

Potential buyers of a business want to know upfront why it’s for sale. They’re naturally suspicious–if this is such a good business, then why is the owner selling?  What is wrong?

In all likelihood, the business is continuing to provide a good living for the owners just as it always has; what’s changed is the owner, not the business. If that’s not the case, we’ll know it and so will you. Full disclosure is essential if we’re going to undertake the sale.

Just as we as homeowners sometimes move from one perfectly good house to another, there is nothing at all wrong with the first house; we just decide to move to another one. Sometimes we change jobs, change locations, change wives, change husbands, things just change as we go through life. Sometimes the change results in a need to sell a perfectly functioning business that has been providing for the owners, just as it is supposed to, but the owner wants or needs to sell the business.

Let’s take a closer look at these owner wants or needs.

Re-inventing yourself as a small business owner: tips for baby boom buyers

Many first-time business buyers are baby boomers

No matter how successful you’ve been in your previous work life, becoming a first-time small business owner can be tough.

As perhaps half of business buyers in Canada were born in the baby boomer era, it’s worth taking a closer look at the typical challenges from their perspective.

But first, some background.  Earlier this year, BusinessesForSale.com ran a survey of thousands of business buyers, sellers and agents across Canada, the U.S., U.K., Australia and South Africa.  They found that almost most 30% of buyers in Canada were in the 44-55 age group and another 20% were over 55. BusinessesForSale.com attributes this age distribution as partly a reflection of Canadian demographics.  And, in case you’re wondering, some 78% of buyers were male.

The survey points to many prospective business buyers wanting to capitalize on low interest rates and a perceived buyers’ market for business opportunities. Canadians seem slightly more positive cautious about the economy, with more declaring it a good time to buy than the worldwide average, particularly regarding the current window of opportunity to buy a business at a low price.

By far the most common reason given by the 82% who believe it’s the right time to buy a business is that continuing economic uncertainty promises low prices, with about half (49%) citing this reason.

Male or female, in Canada or globally, their top reason for buying was the independence of owning their own business.  That was followed by those looking to expand or move into a new area of business and people with a dream of escaping the rat race.

Now let’s go back to our tips for baby boomers buying a business as their second career.