[Submission Date]
[Word Count]
Introduction
The Grande General Store is the place at Spruce Grove, Alberta. The family has decided to sell out the business in a suitable price and then spend most of the time with family and children. The main purpose is now to select a suitable buyer who will buy the business and continue it, and another is the selling price for the business. While selling the business certain steps will followed, including following :
- Proper planning: In this step, the seller will do proper planning to target the buyer. It is important to aware of own self about the business who wants to sell. The seller will properly identify the core competencies of the business so that the selling price will easily choose.
- Make redundant: The business based on store so that the employees that are working there will be properly document so that there will be no ambiguity present in the near future. On the other hand, the seller will make certain policies here, like the present owner also giving permission to continue the business with the same name.
- Business relationship: In this step, the previous owner will do all verbalize agreements in a written format with clients as well as suppliers so that work will be process more easily. The relationship with all is stronger, but now as a business is sell out, so needs to make an agreement in a proper manner.
- Business makeover: The price will be getting easily if the owner will sell and remove the entire slow stock inventory, and all redundant equipment will removed. The owner of the Grande General Store needs high price of the store because it is well named, and a famous store in the area.
- Business Financials: For this Grande General Store, the financial data from 1998-2002 will be considered and will clear the entire amount related to the past so that it will attract the buyer more and pricing will easily be done. The financial statements include balance sheets, income statements, etc. to present in front of the buyer.
Description of the Business Opportunity
The Grander General Store is well established and present in Spruce Grove; Alberta is to sell. The Grande General store is a full service grocery store in which all facilities are present, including food, clothes, beverages, paints, electronic items, meats, wine, gas, beer, ice creams, and supplies. This business is a great opportunity for a buyer to purchase this business and move on further. This business is well established and has a very large number of customers present. This business is to sell along with equipment, employees, customers, clients, suppliers, and inventory included. The business is up to date and has all new trucks available for delivery purposes.
The business started in 1998 and renovated many times from the past to present. This business has many innovations as well. The floor of the store expanded over 4200 square feet. The store is air-conditioned and properly maintained.
The estimated selling price for the general store is $799,999 as per the business opportunities are unlimited so the buyer will gain maximum profit from the market where the store is already placed.
Benefits to the Buyer
There are many benefits present to the buyer. The buyer will gain easy concentration of the consumers because this store has been already present and working well, so the advertisement is not required. Further, the store is present and has many customers so maximum market share will gain easily. The store is well established and maintained is an active manner, so no hard work needed. There is a discipline present in the buying process of customers so that no mess-up will occur. The customers are well aware of the environment, so the work needed only a little as per the buyer’s wish. The store is made and portioned separately so that food are placed separate and beverages are presented separate, so that understanding of the buyer is not a big task. The store is already painted presently and all the inventory is working effectively so as per the economy, the business is a profit oriented. Different laptops are present, and cameras inserted properly, so that security is present as well as laptop are working properly, and software are there for daily financial purposes .
All Pertinent Details of a Sale, so the Buyer can do his or her Due Diligence
In this stage, the buyer wishes to know each and everything regarding the business. In this regards, the sellers needs to make the checklist, which is referred to as due diligence. In this checklist, all the information will present regarding the store, its fundamental items and documents, previous records, taxes paid receipts, physical assets and employees and their benefits, the customers’ information as well as sales information.
The buyers will provide all financial information, current and past income statements, balance sheets, etc. to get an idea about the business and its worth in the market. Following are a few important steps present to the buyer so he can do his due diligence :
- Good standing:
It is important that the business, which is going to sell, has a good reputation in the market and is the value in the marketplace. It is must disclose to the buyer regarding financial statements so that buyer will take the idea that the general store has a worth in the market and is a good standing and can generate more revenue easily.
- Contracts:
Once, the buyer wants to purchase the store than he will also be the direct dealer with the vendors, clients, suppliers. He will have the ownership of the business. Here the buyer will provide all the contractual statements so that he will aware of them for future usages.
- Intellectual property right:
The buyer will have the right once he buys the business. The business needs to clean all the leases if present before handing the business over the buyer. As the property is actually owned by the owner and they have all the rights so the selling price that is quoted is well enough to pay for this working business.
As this deal involves earning out, so it is important to consider all the facts. The seller is well aware of the property and the business. Things are prepared to undertake due diligence of the buyer. The deal needs all the payment in cash so that process of a business deal will easily completed.
- Financial statements:
The financial statements that presented to the buyers, important to be true. The operations of the store are present and prepared well with GAAP method. The values presented needs to be true.
References
BUYER’S GUIDE. (2014, October 5). Retrieved from ALLEN PRESS: http://allenpress.com/system/files/pdfs/publishing/BuyersGuide.pdf
Gabrielski, R. C. (2014, October 5). expert advice. Retrieved from Unblocking liquidity: http://www.se-adv.com/SEA_feature2_09_2012.htm
Kannan, V. R., & Tan, K. C. (2006). Buyer‐supplier relationships: The impact of supplier selection and buyer‐supplie. International Journal of Physical Distribution & Logistics Management, 755-775.
