- Q u e s t i o n s -

• 1. What does "Relocatable - Yes" mean on a Listing ?
   
• 2. Can you tell the date that an ad was first listed ?
   
• 3. Can I contact the Seller directly by Telephone ?
   
• 4. How do I know if a business I'm buying is really worth the money asked?

- A n s w e r s -

• 1.  What does "Relocatable - Yes" mean on a Listing ?
  
  Generally it means that the business can be operated from anywhere in Canada - although some Sellers, for example, may decide to use this feature to simply indicate that the business building is "leased", and that a new Purchaser could lease a different building if they wanted to in a different part of the same town.
   
  So .... If it's "Not Relocatable" - you know it has to remain in the same town and in the same building in order to maintain it's existing established clientele.  If you do want to relocate it elsewhere, you may loose substantial business activity initially.
   
  If it's marked as "Relocatable" - then the Seller believes that the Purchaser could successfully operate the business from another location - perhaps in the same town, or perhaps from a location in another province.  The Purchaser should contact the Seller for further complete details.
   
  In my opinion: a business like "Internet-based Sales" would be classed as completely Relocatable anywhere in Canada; while something like a "Video Rental" store would be Not Relocatable - although you could take the movies somewhere else to rent them; you'd have no established customers to start you off with income on the first day.
   
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• 2.  Can you tell the date that an ad was first listed ?
  
  The "Listing Number" for a particular ad is made up of "year-month-day" + the number of the listing on that day.  In the form: "ymmdd###".  So: "61228002" is: 2006 / Dec / 28th / second listing of that day.
   
  The "Listing number" is shown on the ad's Details page near the top - or in a pop-up "ToolTip" when you hover your mouse pointer over the "More Details" button of the particular listing.
   
  That having been said - there is probably no significance at all to the particular date that an Owner listed his business For Sale with BusinessSellCanada.  He may have offered it prior to this thru a broker/agent or in the newspapers, etc.  Also, an older listing does not necessarily imply an overly anxious or more committed seller.
   
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• 3.  Can I contact the Seller directly by Telephone ?
  
  As you probably understand, premature disclosure that an established active business is now For Sale can sometimes lead to a lack of confidence on the part of the existing customers and employees. .... Therefore, private sellers often restrict the initial inquiries to an e-mail address. .... (To prevent clumsy prospective purchasers from phoning the business and asking the first clerk that answers the phone: "Hey - Is this business FOR SALE ???")
   
  So, please contact the seller initially by e-mail and introduce yourself and your qualifications - and give them a phone number (and a time) to reach you at.  Most sellers would be pleased to phone you back.
   
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• 4.  How do I know the business is worth the money ?
  
  ---   Here's what one Business Broker responded ...
   
  Business Brokers are set up to provide valuations on businesses.  Some business brokers will offer a separate valuation service for a flat fee to a buyer, regardless of whether or not the broker is involved in any other way in the transation.
   
  Most Business Brokers depending upon the size of the business, include a valuation as part of the work they do when they take on the listing (usually a flat fee to the seller for a valuation).  For a smaller business, there might not be a formal valuation, but the figures for the business are recast by the business broker so what is presented to the buyer is an accurate picture of what the business is really making, etc.  But in either case, a buyer can really only determine whether or not the representations that are being made by the seller are accurate at the point when they've made a Conditional Offer, it is accepted by the seller, and the buyer goes into due diligence.
   
  For a small business, once a buyer has made a Conditional Offer and goes into due diligence, the buyer can hire an accountant to have a look at the numbers, books, etc to provide the buyer an accurate picture of what is there, along with an opinion of how to move forward.
   
  ---   A list of 'Business Brokers' can be found in the Yellow Pages of the phone book for major cities, or you might ask an accounting firm, or perhaps check with the "The Canadian Institute of Chartered Business Valuators" at: https://www.cicbv.ca/   [Find a CBV].
   
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