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Service Business for Sale in Windsor

 

Windsor city has been cited as one of the fastest growing metropolitan cities in the year between 2010 and 2011. The city’s potential for economic growth is great. Windsor initially had an economy whose backbone was majorly automotive industry has now reinvented itself to incorporate other parts to the economy to ensure sustainable economic growth. Although Windsor was the hardest hit metropolitan city by the global recession in Canada, it was also the best in recovering from the downturn. Diversification of Windsor’s economy has been a good thing as it has opened up investment opportunities and improved economic standing.

Selling a service providing business is quite different from selling retail or wholesale businesses. Goods based businesses are majorly valued from tangible assets available and stock on hand. Service based companies are different in that they have little in terms of assets and no stock to calculate value of business. How then can you sell a service business? The best way to start by knowing how much your business makes from providing services to clients. If you have a service business for sale in Windsor you should know how to make profitable and fair sale by:

Know your assets and accounts

Assets in a service business may be few or none. Your office furniture, computers, operation machinery and vehicles may be some of the tangible assets that you may pass on to a potential buyer. Accounts refer to the income you make. Calculating how much you get from providing services to clients for a period of about a year will be important. If you have contractual agreement with clients to buy services for a specified time, sum up the remaining value of service contracts. If you are not a contractual agreement business total up the income for service provided to clients over a year.

Calculate Liabilities

When you have service business for sale in Windsor, Liabilities are an important thing in calculating market price. Liabilities refer to all monthly expenses incurred during operation of businesses: Monthly bills, salaries, equipment loans and any other accounts that your business is in debt to.

Calculating a Fair Market Price

After having you assets and account values together with the liabilities sum you can now work on calculating the fair market value of your service business. Subtracting your liabilities from your asset and accounts will give you the starting/ baseline figure for sale from where negotiations can start.

When you have a service business for sale in Windsor it is of importance that documentation and agreements be made clear. For starters once you have agreed with the buyer on a sale price, it is important that you also agree on a payment plan: The date of turnover, initial down payment and interest if payment is done in installments. In the event that the buyer requires your services as a consultant after purchase, this should also be agreed upon prior to the sale. Finally it is important to have a lawyer to write down a binding document that will cover all the things agreed upon. Always review the draft before signing.

Premium Listing

$2,300,000
Gas Station For Sale With Liquor Store
Not Disclosed, Ontario

Sponsored Profile

Nav Sidhu
Homelife Maple Leaf Reality Ltd. Brokerage
Phone (905) 456-9090
Website http://www.navsidhu.com
Address 263 Queen Street E
Brampton, Ontario
Canada L6W 4K6