Purchasing and/or Selling a Business
The key to success when purchasing or selling a business is preparation and planning. And proper preparation and planning begins with a professional approach. At KBFP LLP, we have the professional team, with experience and expertise, to create that success. We are a Licensed Public Accounting firm, with Chartered Professional Accountants who can provide everything from accounting and assurance, to tax consulting and business advisory.
With a professional approach, all of the business priorities are appropriately handled: the specific components of the buy/sell transaction; a sophisticated business assessment and valuation; analysis of the cash flow position; tax minimization strategies; and all aspects of transition planning. Our team works hand-in-hand with each client to ensure the optimum in outcomes, while providing a streamlined and stress-free process.
Clearly, the procedures, practices, and technicalities when buying or selling a business are variable. But in essence, every business owner will be either buying/selling the assets of a business, or buying/selling shares of a company. Each scenario has tax implications – each has distinct advantages - and both will benefit greatly from a professional approach. At KBFP LLP, we have both the professional know-how and the professional experience.
When assets are sold, and depending on the size of the business, it might include business equipment, inventory and stock, and accounts receivable. Consideration is also given to the fair market value of those assets, and here, the experts are indispensable. Furthermore, the component of "goodwill" also requires careful deliberation. This is the so-called intangible asset of the business’s value that can’t be credited to the physical business assets.
There are many rules, regulations and legalities involved when purchasing and/or selling a business. The truth is, an average business owner has limited knowledge in this regard, while the professionals understand the substance. Write-offs, depreciation, and capital cost allowances are all subjects that require in-depth understanding - and Canada’s tax system has guidelines and parameters that require equal understanding.
In corporate situations, when shares are purchased or sold, there are business complexities that also require expertise. Needless to say, every business circumstance is different, every business has its own nuances, and every purchase/sale has advantages, as well as pitfalls. Here again, the credentials of a Chartered Professional Accountant can play a vital role in expediting a purchase/sale, and more importantly, can prevent missteps.
Every business owner, regardless of company size, should recognize the need for sound accounting and tax counsel, especially when it comes to purchasing or selling a business enterprise. And just like good legal advice, good accounting and tax advice can’t be exaggerated. Properly structuring a purchase/sale can be the difference between a fabulous deal and a mediocre deal. Doing otherwise doesn’t make business sense.
At KBFP LLP, our team will work with you to expedite your purchase or sale efficiently and effectively. We help you to make important business decisions; to fine-tune your business objectives; and to meet your short term and long-term financial planning needs. Quite simply, we work with you to accomplish your ambitions and achieve your goals.