Advising on business structure, ownership and succession.
Advising on financing a business purchase or expansion.
Advice and guidance on the business purchasing process.
Advice and guidance on preparing to sell a business.
Business Valuation.
Advice on special projects and business diversification.
Structure, Ownership or Succession
It is said to be much easier to enter into a business than to remove yourself from one.
Focusing on the latter from the start can make your retirement or sale of the business a much smoother process.
Either in the business you currently operate or one you are about to acquire, Newpatch will help you pose the appropriate questions on structuring the business such that your eventual departure, whether in the form of a sale or otherwise, will be as smooth as possible.
ADVICE ON FINANCING
A PURCHASE
OR EXPANSION
There are a variety of methods that can be used in financing the purchase or expansion of a business.
Using your own personal wealth in conjunction with some form of institutional financing is a most common method of funding a purchase. Personal equity and assets, other than cash, can also be leveraged to access external funding. Asking the seller to hold a portion of the sale price inside the company as part of the purchase price is also a common source of financing. In the case of purchasing a business understanding the true value of the business from a lender’s perspective is critically important.
It is important that your business has professionally prepared, up to date accounting records so that when you decide it’s time to expand your business access to financing will not be hindered. Since your business is likely doing well and your bookkeeping shows this, there are various credit facilities in the market that can help. It’s then a matter of choosing the most effective and affordable one that suits your purpose.
Guidance on
Purchasing a Business
Purchasing a business can be an exciting life changing experience.
It can also be an intimidating process.
Newpatch Advisory will work with you to alleviate some of the pressure, help you to ask the right questions and consider your prospective purchase through an objective lens.
GUIDANCE ON SELLING A BUSINESS
The time to prepare to sell your business is the day you purchase it. Unless you consider your business a vocation, something that is inseparable from who you are as a person, it is important that you manage it under the premise that it may be sold at any time. Newpatch Advisory will help you to structure your business to facilitate a smooth sale process when that time arrives.
Business Valuation
Establishing the value of a business can be considered more of an art than a science.
A framework for inquiry might include the following four fundamental components; a review of the company’s financial history, a human resources assessment, a review of the marketplace and the company’s position in it, and a financial valuation.
There are various methods used in determining a business’s value; liquidation value, asset value, multiple of earnings value, or industry (franchise) standard valuation, each has its own merit. There can be subjective considerations in a business evaluation such as the seller’s emotional connection to the deal, which can be much different than the buyer or lender’s objective analysis, inferring the ‘art’ component of a valuation can be an influence. Newpatch Advisory will help you to reach a business valuation that you are comfortable with whether you are buying or selling a business.
SPECIAL PROJECTS AND BUSINESS DIVERSIFICATION
If you are considering tackling a special project, a one-off endeavour, or are looking at growing your business through product and service diversification, let us be your sounding board.
What People Say
Managing and Operating a small business is in itself a challenge. Considering how and if to grow the business can also prove difficult. Newpatch Advisory helped me look at the pros and cons of growing and provided an unbiased third party view of the problem.
Since starting my business I have often reached out to Newpatch Advisory for advice and suggestions when a critical decision was needed and found their input to be very helpful.
Running an independent business can be challenging at times and I have found my discussions with Newpatch Advisory over the years to have helped me focus my direction and grow the business.
When the time came to wind up my business, it was clear that selling the assets and inventory was going to be a complicated affair. Newpatch Advisory guided me along the way, through twists and turns, helping us achieve the best possible outcome.
ABOUT US
Bryan has owned several businesses over the past 20 years.
In his experience growing an Aviation Services company into three separate synergetic business units, with operations in three provinces, many lessons were learned and struggles overcome. After growing the business threefold it was successfully sold to an American multinational company. His experience also includes owning a wholesale equipment distributor that represented international brands to customers throughout Atlantic Canada.
Newpatch Advisory Service
PRINCIPAL
Bryan MacDonald
Master of Philosophy; Philosophy, Politics, and Economics
Bachelor of Arts; Geography and Political Science
Diploma Urban and Rural Planning