Selling a business is an important decision with life changing implications which include financial, lifestyle and emotional consequences. The reason for selling a business is usually a combination of many issues such as retirement, new opportunities, lack of time and resources to continue, health

There are two ways of structuring the sale of a business:

1.    Share sale; and

2.    Asset sale.

 

Share Sale - The Shareholder(s) is the Seller. In a share sale, the Company and its on-going business are valued and the buyer purchases all by purchasing the Shares of Capital Stock of the

Restaurants generally sell for approximately 2-3 times the SDE for the preceding 12 months plus inventory.

 

Other rules of thumb . . .

3 - 4 times EBITDA

30 to 35 percent gross sales plus inventory.

Food costs should not exceed 33% and payroll costs should not exceed 30% with ideal combined costs

“Canadians are aging, and Canadian entrepreneurs are aging even faster. According to a recent CIBC report, the number of self-employed who are nearing retirement (ages 55 to 64) has been rising rapidly in recent years, growing by a whopping 7.5% annually since the beginning of the decade. This is

There is no simple method, but to approximate the value of your business, you should consider both its assets and earning power.

 

Generally, the earning power of a business is defined as the annual pretax earnings plus owner's salary and perks added back, which determines the real earning power