WELCOME !

Thanks for dropping in for some hopefully great business info and on occasion some hopefully not too sarcastic comments on the state of Business Financing in Canada and what we are doing about it !

In 2004 I founded 7 PARK AVENUE FINANCIAL. At that time I had spent all my working life, at that time - Over 30 years in Commercial credit and lending and Canadian business financing. I believe the commercial lending landscape has drastically changed in Canada. I believe a void exists for business owners and finance managers for companies, large and small who want service, creativity, and alternatives.

Every day we strive to consistently deliver business financing that you feel meets the needs of your business. If you believe as we do that financing solutions and alternatives exist for your firm we want to talk to you. Our purpose is simple: we want to deliver the best business finance solutions for your company.



Tuesday, September 16, 2014

Financing A Business Purchase : It Pays To Follow This Business Valuation Advice







The Upside Of Financing A Business Valuation Well


OVERVIEW – Information on financing a business purchase in Canada . Business valuation factors and how you interpret and use them have a key role in buying and selling a company successfully




Financing a business purchase in Canada
comes with one major requirement - needing to know certain aspects of business valuation and how some of key factors in that process will affect your ultimate success in buying or selling a business. Let's dig in.

Why would business owners / entrepreneurs take on more risk, in effect gamble on buying a business? Many of course feel that that route actually eliminates risk of financial loss if only for the reason they are buying an existing business. Knowing how to finance that purchase (if you're the buyer) or how to maximize benefits of final valuation are key. We'll look at some key issues here from the viewpoint of both the buyer and vendor.

There are some, let us call them ' soft factors ' in purchasing and financing a company if you're the buyer. Although lenders might not necessarily address these issues with you directly we can assure you they are looking at things like your management and industry experience , external economic conditions within your industry, and the potential finaceablity of your sale at a price you and a seller have agreed on.

Other miscellaneous issues (they might not be that miscellaneous) include some due diligence around premises and licensing issues, any environmental concerns, etc. If real estate is part of your transaction almost no traditional finance solutions can be brought to bear if there are environmental /contamination issues.

Naturally the method the seller and buyer have chosen to ' value ' the business affects the financing you need to consummate the deal. That number can vary differently if you have chosen one business valuation alternative over another. These methodologies are a classic bit of art and science and may include:

Return on investment required by the owner

Cash flow analysis (these must be realistic) Here you need to understand past and future working capital requirements

Book values of assets - In many cases either buyer or sell will want to have these appraised


Any business lender, whether it be a bank or a commercial or alternative lender will want to see some key documents around the purchase and sale. They include:

The actual sale agreement itself

Existing financing that is in place - e.g. bank security, leases, contracts, etc - These are typically verified by lenders by checking govt PPSA filings showing secured lenders and what collateral they claim

Up to date financial statements / tax filings


If you are buying a franchise you will of course need permission from the franchisor


In many business purchases a lot of adjustments happen after the sale. They might include which party collects the outstanding receivables, who keep cash on hand, value of inventory that is on hand at closing, and final payments due on leases, utilities, etc.

Whether you're the buyer or seller knowing how to sell or finance a business purchase is key - seek out and speak to a trusted, credible and experienced Canadian business Financing Advisor with a track record of success who can assist you with your business valuation finance needs.


Stan Prokop
- 7 Park Avenue Financial :
http://www.7parkavenuefinancial.com
Business financing for Canadian Firms , specializing in working capital, cash flow, asset based financing , Equipment Leasing , franchise finance and Cdn. Tax Credit Finance . Founded 2004 - Completed in excess of 90 Million $ of financing for Canadian corporations . Info /Contact :



7 PARK AVENUE FINANCIAL = CANADIAN BUSINESS FINANCING & VALUATION FINANCING EXPERTISE










Have A Question /Comment On Our Blog Or Canadian Business Financing Alternatives ?

CONTACT:
7 Park Avenue Financial
South Sheridan Executive Centre
2910 South Sheridan Way
Suite 301
Oakville, Ontario
L6J 7J8

Direct Line = 416 319 5769

Office =
905 829 2653



Email = sprokop@7parkavenuefinancial.com













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