The first Canadian issue of Capital Ideas, our quarterly newsletter dedicated to business selling, business buying and financial resources for mid-market companies.
Business Valuation: An Objective Look
Several Ways to Approach Value
By S. Lee Crawley, Managing Director, Tulsa Office
What do you think my company is worth?
This is a question asked frequently by prospective clients who are considering the sale of their companies. Although there are many other factors that can affect a business owner’s decision to pursue a sale, valuation is an essential matter for business owners to understand. While there are several ways to approach “value”… Read more
Should You Sell Your Business?
Questions To Help You Decide
By Ashley Edwards, Managing Director, Toronto West Office
Question #1: Why are you considering selling?
The most fundamental question to ask yourself in deciding whether you should sell your business is why.
Why are you considering selling? There could be any number of reasons, but understanding your motivation will help you understand whether selling is the best answer.
Here are some common reasons why business owners start thinking about selling: Read more
Situation: When Poly Nova Technologies retained CFA Toronto West to assist with their shareholder transition, the economy was at the start of the downturn and their industry sector (auto parts manufacturing) was sliding into a deep trough. To complicate matters, Poly Nova’s corporate structure included three shareholders, one active and two passive, with three independent holding companies, two of which were registered in the USA and one in Canada. It would take the perfect scenario to effect a successful close… a perfect strategic buyer coupled with an experienced legal, tax and M&A team to navigate this challenging cross-border deal.
Solution: CFA Toronto West was highly focused on finding the ideal strategic buyer. In late 2010, Starlim Sterner of Austria made an acceptable offer for the company. When the final documents were signed, the goal of each participant in the transaction was met. The buyer found a perfect strategic fit. The two passive shareholders were happily divested of their interest in the business, and the single active shareholder found a new business partner focused on growth.
Corporate Finance Associates (CFA) is a founding member of ICFG, the 14th largest mid-market M&A firm in the world with over 40 offices in North and South America, Europe, and Asia. In 2011, it completed 97 mid-market transactions, of which 15 were cross-border. Since 1956, CFA has completed more than 5,000 transactions.
For additional information contact:
Douglas Nix, CA | Vice Chairman
Corporate Finance Associates | Toronto West | 905-845-4340 x211 | email@example.com