Starting a business is a major undertaking, one that can take weeks, months, or even years. After investing countless hours of work (not to mention money), eventually, the time will come to sell your business and move on. When that time comes, you’ll be in for a long haul once again.
Here’s the honest truth – you can’t sell a business overnight, or even in a few days. In Ontario, the process of selling a business (whatever it may be) is complex, and it takes time. Simple as that.
Beyond simply finding the right buyer, there are countless financial, legal, and regulatory hoops to jump through before the deal is done.
With all that in mind, if you know how the process of selling a business works, how to prepare for it, and what to expect, you can set yourself up for a smooth, and efficient sale. Let’s get started.
Searching for catch all advice on selling a business in Ontario? Read our blog on the topic.
How Long Does it Take to Sell Your Business?
In an ideal world, business owners could instantly cash in on their hard work and equity once they’re ready to sell. Unfortunately, in the real world, it’s not that simple. Selling your business is a fairly involved process – and that’s not necessarily a bad thing.
Sure, there may be a long list of steps you need to take before handing off your business. However, most of those steps play a direct role in protecting your interests and ensuring that you get the best return possible.
If you’re looking to sell your business with as little hassle as possible, you’ll need to do things the right way. Ironically, attempting to cut corners or take shortcuts can actually drag out your sale when you eventually run into issues. In more extreme cases, rushing the process can jeopardize the sale altogether – sending you all the way back to square one.
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
Timing Your Sale
As a business owner, it’s important to recognize that selling will take time. But that doesn’t mean you should procrastinate on kick-starting the process. If anything, the sooner you get the ball rolling, the better. This is especially true if your business is losing money or having a hard time making ends meet.
It’s also worth noting that if you’re selling a mixed use commercial property with your business, there could be certain RTA (residential tenant rights) regulations that impact the timeline of your sale as well.
What is the First Step of Selling a Business?
The first step in listing a small business for sale is partnering up with a professional. More specifically, a business broker or commercial real estate agent.
In the same way that a residential real estate agent can help you list and get a great price for your house, a business broker can guide you through the journey of selling your business from start to finish. They’ll help you understand what your business is worth, and what you can do to maximize your returns.
Remember, selling a business is a complex and intricate process, so it’s critical to work with someone who has direct experience with your specific type of business. For instance, if you’re selling a bar, brew pub, cafe, eatery, or fast food franchise, you’ll want to work with a restaurant real estate agent. Selling a hotel or motel? Look for an accommodation and resort real estate agent.
Maximizing Efficiency When Selling
If you really want to sell your business as quickly as you can (without taking shortcuts), there are some things you can do to make the process more efficient. Of course, the timing of your sale will still depend on buyer activity and the market, but certain preparations on your end can help move things along.
For example, having essential documents like business records, asset lists, equipment warranties, and other relevant information at the ready before you sell will save you time when interested buyers eventually request them.
Looking for a crash course on Canada’s restaurant industry? We’ve carved up some helpful resources on our blog.
- How is A.I. Changing Restaurant Real Estate?
- What Should Restaurant Owners Know About Ghost Kitchens?
- How Restaurant Real Estate is Evolving
Sell Your Business With Carve Real Estate
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.
