David Elrick is a Partner in BDO's Winnipeg office and has been advising on acquisitions and dispositions for 12+ years.
Ryan Farkas is a BDO Partner and leads the Transaction Advisory Services practice in our Toronto office.
Adam Thompson is a BDO Tax Partner in our Guelph office, with 10+ years providing tax services to buyers/sellers of businesses.
Michael Morrow is a BDO Partner and National Leader - Corporate Finance. He has successfully closed over $2 billion in transactions.
We sat down with them to discuss the particulars of selling a business and answer frequently asked questions from first-time sellers. Interestingly, many of the answers they gave had a similar theme: preparedness.
Starting to think about and plan your exit is never a bad idea
The earlier you start, the more prepared you'll be the day you decide you're ready to sell. Ryan summed it up nicely:
“If owners aren't prepared for a transaction, they can get overwhelmed by the amount of information a buyer wants. This creates a timeline drag that becomes deal fatigue, which leads to no-deals.”
He said one of the first issues sellers have to wrap their heads around is timelines.
“People have an expectation that these things can be done in 60 days or 90 days, and they often take a lot longer than that, sometimes upwards of eight to ten months. It's distracting for the owner and the employees, and it can be a lot, emotionally, to get through that process.”
Navigating this process is ultimately what these four gentlemen do best.
“Get to know the advisors in the space,” says Michael. “Ask the right questions. Understand the process. Those are the first steps.”