Canada:
What's Your Number?
06 May 2019
Clark Wilson LLP
To print this article, all you need is to be registered or login on Mondaq.com.
When it comes to selling their business, business owners
frequently focus only on the sale price, to the exclusion of the
sale terms. This is a serious mistake because the sale price,
while an important number, isn't the most important number to
focus on. The most important number to focus on is how much money
you end up with after all terms have been complied with, and this
can be different from the sale price.
One good example of this principle at work is the concept of the
"working capital adjustment". I call the working capital
adjustment the "secret" way to get a higher price (if
you're a seller) or the "secret" way to get a lower
price (if you're a buyer). Let me explain.
WANT TO READ MORE? This article is available to email
subscribers only. Click here to sign-up for Don Sihota's
Business Succession Update (or contact
jmitchell@cwilson.com).
The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.
POPULAR ARTICLES ON: Corporate/Commercial Law from Canada
Do Your Notes Pass The Sniff Test?
Babin Bessner Spry LLP
Advisors are at risk these days with firms' propensity for terminating them at the first whiff of an infraction. Note taking to support suitability of a client's account...
Taxpayer Relief In Maverick Oilfield Services Ltd.
Miller Thomson LLP
Despite their best efforts, taxpayers may sometimes fail to comply with their obligations under the Income Tax Act (Canada) (the "ITA") and incur interest and penalties as a result.