Checklist for Selling Your Business

Prepare an Agreement for Sale of Business between a business broker and a client with this fully editable template.

• The broker will list the business for sale, identify potential buyers and act on behalf of the seller to complete a sale.
• The broker's commission rate will be calculated as a percentage of the sale price or a minimum fixed rate, whichever is more.
• The seller grants the broker a lien over the business assets until the commission is paid in full.
• The parties agree to arbitration in the event of a dispute.
• This template includes a confidentiality agreement which potential buyers must sign before reviewing confidential business information of the seller.
• Available in MS Word format, easy to use and customize.
• This is a generic form that can be used in many jurisdictions.

This information package and checklist is for you if you're planning to buy or sell a business in Canada that is valued in excess of $1 million. You'll discover:

• How to reach a common understanding so you can make the best possible deal for both parties.
• Value and price are not the same thing.
• A comparison of asset sales vs. share sales.
• Different methods of evaluation.
• How goodwill can be evaluated.
• How to calculate normalized sustainable future earnings.
• How to assess the buyer's risk.
• Recasting historical numbers and predicting future numbers.
• How to bridge the gap by sharing the risk, the burden and the tax shield.
• The information applies equally to share sales and asset sales.

The most difficult issue in negotiating the purchase or sale of a business is negotiating price. Download this package and learn the ins and outs of successful price negotiations from an expert.

If you're selling a business in Canada, this Bill of Sale form is essential to transfer ownership of the assets to the buyer.

• The form is not only a bill of sale, it's also a conveyancing form that transfers, conveys and assigns title to the business assets (such as equipment, vehicles, inventory, trade marks, etc) to the purchaser.
• With this form, you can also appoint the purchaser as your attorney to demand, receive, give receipts for and deal with the assets being transferred.
• Available in MS Word format.
• Intended to be used only in Canada.

Write an offer to purchase the assets, inventory and supplies of an Ontario business with this downloadable template.

• Once accepted by the seller, the Offer to Purchase becomes a binding agreement of purchase and sale between the parties.
• The offer is conditional upon the purchaser receiving financing sufficient for the transaction.
• The purchaser will take over the lease on the business premises and assume certain liabilities.
• The purchaser is responsible for paying HST on the transaction.
• The purchaser will pay the value of current inventory and supplies on hand as of the closing date, valued at lower of cost and net realizable value, as determined by the parties after conducting a physical inventory.
• The parties will cooperate in obtaining any third party consents required to complete the transaction.
• The parties will jointly file an election under section 167 of the Excise Tax Act.
• Available in MS Word format.
• Intended to be used only in the Province of Ontario, Canada.