Buying a business is a prospect that a lot of entrepreneurs consider for a variety of reasons. An established business presents certain advantages as opposed to building one from the ground up. If you are looking to start a commercial entity in Vancouver, then consider the various listings available.

A business that has already established a niche looks more attractive than laying down the foundations yourself. If there are ideas you want to add, then it is just a matter of incorporating them in the most efficient way. But how do you know a business is of value to you? Among the businesses for sale in Vancouver you are considering, which is worth putting money in? The following checklist will help you gauge the value of business for sale.

Why is it on the Market

Look into the reason for the sale of the business. The business broker, such as those from Vancouver Business Brokers, can help get you this information. A business owner may be having problems and that is why the business is on the market. The company may have hit a rough patch and may not be making any money. Or maybe the seller just wants a change. Learning why a business is being sold will give you a background to work with.

The History

Check out the history of a particular business for sale in Vancouver. Find out how the business has been doing over a specific timeframe. You need to know how sales have been, the impact of the company in that industry and any problems it may have had. For instance, you may find out that a company has pending litigation, which may not make it a good fit. Research the market as well and find out if it’s growing or stagnant.

Financial Status

Consider the finances of businesses for sale Vancouver before making an offer. You have to evaluate the assets, debts, cash flow, and expenses. Choose a model to work out the cash flow of the business. A real estate firm can provide assistance with this. Is the company bringing in money? Then look at elements such as the inventory, sale records, financial statements, taxes, list of liabilities, accounts receivable, and payable. All these will give you an idea of its past and current state.

Intangible Assets

When valuing a business for sale in Vancouver, don’t forget the intangible assets. These may include the reputation of the company, license value, supplier and client relationships, and intellectual property patents if there are any. Look at the competition and how the company treats its employees. Intangible assets play a significant role in the worth of a company.

Sources
9 Killer Tips for Building and Selling Your Business, INC
How to Buy a Business, Entrepreneur