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Preparing For Sale

Pricing your small business for sale (and achieving the asking price on sale)

For small businesses, setting a sale price involves numerous considerations. Owners usually have an intuitive feel for the value, but often the actual sales price is much less than ask. WHY? Usually sellers listing a business ask more than the net asset (book) value of the business. Anything over book value is called goodwill, and…

Endangered Species Act – the basics

I am representing a buyer of a parcel of raw industrial land in Hamilton and I included a condition that we are satisfied that there are no undue risks related to the Endangered Species Act. There are 2 main Acts – The Species at Risk Act (Federal) and the Endangered Species Act (Provincial). For interest…

Sale and Leaseback – better than outright sale?

We are seeing an increasing number of clients considering sale and leaseback, for many good reasons : A global manufacturer wanting to add a new production line costing $2million who owns their own building valued at $5.5million with significant equity tied up; A manufacturer who won a bid for a major supply contract but realized their working…

Repurposing a Specialty Property

I worked with a church group selling their property and given the size of the property, location and value of the land it seemed unlikely a church group was going to buy. Eventually, a non-profit community group was the successful buyer. Unfortunately the zoning in place at time of listing would have allowed the use, but…

Environmental Basics

Most commercial properties have at least some environmental risks. Beyond that statement it is a property by property situation. The most common problems come from past or present industrial uses or other hazardous uses like gas stations or dry cleaning plants. When you are buying it is advisable to at least consider a Phase 1 environmental report –…

Basics of Commercial Property Finance

As a licensed mortgage broker in Ontario I sometimes get involved in the financing of commercial properties. I usually do this as a convenience to my Martel clients rather than focus on financing as a main business line. Point 1 : Talk to your bank first. Most clients have an existing banking relationship with a…