Selling a business... where to start?

[TorqueDog]

My uncle in Winnipeg is looking at selling his business and (finally) retiring at 77. The business is profitable, has a long history (it's older than I am, and I'm 30) and a well developed customer base, with all the accounts payable at $0. He'd like to grow the business, but he also feels he's too old to go into the shop every day.

He's asked me to help him find a buyer since he doesn't know where to even begin and isn't very internet savvy. I've found a few sites that are basically like a 'Kijiji for selling a business', but I figured with the diverse crowd we have on here, someone would have information they wouldn't mind sharing.

Ideally, the business would be sold outright, though he is willing to entertain an investor who would want to grow the business. A 'managing partner' of sorts.

Any ideas on how to start prospecting for a buyer for something like this?

[Bill Bumface]

Select "Business" as the category.

https://www.realtor.ca/Commercial/Index.aspx

[oilyfan]

Find a business broker. They will help market it for him.

[Da_Chief]

type of business?

[Slava]

Has he got employees? That's likely where I would start if they're interested and good people. After that you could look at competitors and see if any of them want to buy his business (having no idea what the business is makes this more difficult of course).

[Locke]

I gather its an asset-backed business rather than a book of business?

[VladtheImpaler]

What it is will tell us quite a bit. Is it a restaurant, an auto shop, a store or a law firm?

[TorqueDog]

It's a commercial and light industrial scale repair and sales business. Five full-time servicemen (two certified inspectors), each with a company-owned vehicle (free and clear), operates out of two buildings last assessed by the city at $500,000 cumulatively.

[VladtheImpaler]

Originally Posted by TorqueDog

It's a commercial and light industrial scale repair and sales business. Five full-time servicemen (two certified inspectors), each with a company-owned vehicle (free and clear), operates out of two buildings last assessed by the city at $500,000 cumulatively.

I think as a first step, talk to an accountant (presumably), who would be able to give him an idea of what the thing is worth, including land and assets.

[TorqueDog]

He's already figured out an asking price, I'm more interested in where to find buyers.

[SeeGeeWhy]

Does he have a replacement GM? PM me, there's a few considerations.

[VladtheImpaler]

Originally Posted by TorqueDog

He's already figured out an asking price, I'm more interested in where to find buyers.

Competitors and employees would be the usual 1st step.

[FlamingHomer]

As oilyfan said, you should use a business broker but picking the right one is important. We sold our business in Calgary a year and a half ago. Our first broker had it for about three years then we listed with another and he sold it in 4 months.

One thing we were surprised at is how little they do to help sell it. It's not like what realtors do at all. They would bring prospective buyers to our business and we would have to do the selling because we knew the business better than the broker. It's common that a broker won't even accompany the buyer to your business for the meeting.

If you are OK with having your staff and customers and competition know you are selling then I guess you can do it on your own but if not, find a good broker. Most of them aren't good.