We reviewed the last 3 years of financials, looked at market comparables of what other businesses in the industry sold for and came up with a "Most Probable Selling Price" for the business. The business was listed in the market place for $550,000. We received over 200 inquiries on this business from potential buyers. All prospective buyer inquiries were qualified by VR support staff by asking prospective buyers to complete a standard Confidentiality Agreement and Buyers Profile. Based on the information we gathered we were able to determine and qualify 8 buyers. These 8 buyers were provided the opportunity to look at the business further via information available in the Virtual Data Room (VDR).
Of the 8 buyers, after further evaluation we were able to provide the Seller with 3 offers for the business of which 1 was accepted by the Seller. The entire process from start to an offer being accepted took about 4 months. The process was however delayed by about a month and a half due to financing. For some reason the Banker that the Buyer was dealing with could not somehow understand the Buyer's need and was unable to complete the financing. On the advise of VR, the Buyer then spoke to another Banker in a different Bank and was able to secure better financing terms and rates for the same deal within one week.
Overall the transaction closed in about 5 months which is the average length of time for a business sale transaction at VR Business Sales Edmonton.
This transaction was completed by Jey Arul and Gary Repchuk.
The lawyer that represented the Seller was Richard Finlay from Hansma Bristow Finlay LLP.