Running a business is hard work, but it’s also incredibly rewarding. As an entrepreneur, your business is not just a career path, it’s your pride and joy. However, there may come a time when you decide, “I want to close my business and walk away” – and that’s okay! Whether you’re ready to retire, need to close for financial reasons, or are moving on to another venture, selling your business is as important as the process of launching it. Here we discuss the details of how to sell a business in Ontario
Just like buying or building a small business, selling can also be complicated. You may be wondering “how do you sell a business?” But with the right planning and professional help, you can make the most of your business sale, earning a great return on your investment while minimizing stress along the way.
If you’re wondering how to sell a small business in Ontario, this blog post is for you!
Already cooking up your next business venture? Click here to explore available businesses for sale in Ontario.
Make a Plan
First things first, selling your business won’t happen overnight. It’s simply too big (and complicated) of a process. So, in order to keep yourself on track, it’s good to start planning and preparing for your sale as early as possible.
Have Your Records Ready
Getting your records in order is one of the best things you can do to prepare your business for sale. Serious buyers will want to know everything – and we mean everything. The more documents you can provide, the better.
Take Stock of Your Assets
Speaking of having records available, most buyers will want a detailed inventory of the assets included in your business sale. So, the next step is to list and assess the value of any and all business assets. On top of keeping buyers happy, this step will be a crucial part of valuing and pricing your business.
Looking for more guidance on how to sell a small business in Ontario? Check out these other blogs from our site.
- Can I Sell My Restaurant If It’s Not Profitable?
- Selling Your Restaurant – What Happens After the Deal Closes?
- Finding the Best Agent to Sell Your Client’s Restaurant
Keep Things Confidential (For Now)
Selling your business can be exciting, however, you will need to practice some discretion around when (and how) you share the news.
When you sell your business, it’s a good idea to keep things confidential early on – at least until all the details are set in stone. Of course, there will be certain people you should speak to before and during the selling process like high-level managers, co-owners, or any other stakeholders, however, you’ll want to keep the news to a small few. Confidentiality is particularly important if your business is still operating. Breaking the news too early can lead to rumours, misunderstandings and miscommunications.
What to do With Assets When Closing a Business
If your small business is on the extra small side (think sole proprietorship), you may choose to close it rather than sell it. When it comes to how to close a business in Ontario, the process is relatively straightforward since you’re not working with buyers, financiers, or other similar parties who can prolong or complicate things.
However, even if you’re not selling your business, you can still cash in on certain business assets on the way out by selling them second-hand. In Ontario, you’ll find lots of small business owners who are searching for used, good-quality items like special equipment, furnishings, appliances, and more. By selling these assets as opposed to moving them into storage or simply giving them away, you can recoup a little more of your investment.
Tying up Loose Ends
Once you’ve sold your business, you need to notify certain people – mainly the provincial and federal governments. This is because when you sell a business in Ontario (and not just your business assets), there are formal legal and regulatory requirements to follow.
These steps will be different based on the type of business you have, how long you’ve had it, your succession planning, and other factors. Making things even more complex, there are also tax implications of selling a business in Canada.
Given all the legal details of this process, it’s a good idea to work with an expert. Your broker or commercial real estate agent should be able to point you toward the best help based on your specific circumstances.
Work With an Expert
Finally, if you’re planning on selling your business in Ontario, the best thing you can do to maximize your results is to partner with a professional business broker or real estate agent. That’s where we come in – Carve Real Estate.
Beyond our team’s industry-sprawling expertise, our specialized selling strategies and direct connections to industry players can expose your business to a more relevant and qualified pool of potential buyers – contributing to a smooth and successful sale.
Ready to sell your restaurant? Carve Real Estate can help! Reach us at ryan@carverealestate.com or call 416-618-0054.
