Concluding The Sale Of A Business

A seller is most concerned with attaining a certain level of purchase price and finding the right buyer. The determination of the purchase price can be a difficult process.

The lawyers at PMR Law provide legal advice and support to clients throughout the valuation process. Our experience in purchase and sale transactions allows us to advise on whether the business supports a certain valuation done by others on arriving at a fair purchase price.

Determining The Right Purchase Price

When selling a business, PMR Law supports the process of achieving the right purchase price by:

  • Confirming that the pricing approach taken in negotiations and initial letters of intent follow reasonable valuation principles
  • Engaging other advisors to provide valuation advice
  • Confirming price multiples by review of existing financial statements
  • Drafting letters of intent that capture concepts such as royalties, percentages of profits, and adjustments based on actual performance
  • Reviewing and critically analyzing past performance drivers

Choosing The Right Purchaser

In Alberta, many businesses are facing succession issues. Some business owners believe that the future of a business lies in a sale to a family member. Others want to find a purchaser outside the family network. Evaluating the skills of the purchaser is essential, especially when some of the purchase price is payable over time.

The PMR Law team has experience in managing the sensitivities of the generational transfer or the sale to a third party. Our team assists clients throughout Alberta in identifying and proceeding with the achievement of the transfer of control of a business.

Retention of key personnel is an important part of this process. PMR Law favours written agreements to deal with the issues that arise in a key change to the business.

Economical Approach To The Transaction Process

PMR Law has comprehensive experience in business law. We have in-firm tax law expertise, but also work collaboratively with other accounting and tax professionals.

We back up our business experience with litigation resources. Clients benefit from the combination of skills offered by our lawyers. We pride ourselves on the ability to make a deal, rather than the approach of insisting on things being done a certain way.

Meet Our Lawyers

Contact Shaun T. MacIsaac, Q. C at (403) 457-9600 or Thomas J. Eaves at (403) 457-9602 in our Calgary office, or by email at [email protected] or [email protected] and find out how we can help.