b'FEATUREteam should be proud of whatsomeone in a complementary business.as excess inventory increases the need your are doing. Roofing and restoration are complemen- for working capital.9.Keep looking for flaws and fixtary. The buyer may see economies of One last point. No one is going to them. The devil is in the details. scale, such as reduced rent, lower officewrite you a cheque for the full amount. 10. Have fun and make sure yourcosts,betterutilizationofmanpower.TheywillwantyoutotakeaVendor team has fun, too. Ormaybeyourcontactlistisa Take Back (VTB) for one to three years. key ingredient.Provided you are not in new construc- They are going to want you to help with Whats my business worth? tion, you should be able to get at leastthe transition and maybe work for a year, Firstly, review your balance sheet andfour times EBITDA and maybe as highor even two. They are also going to be remove any redundant assets.Excessas six times. If a share sale, minimizelooking for assurances that the employees working capital should be taken outthe working capital requirements. Keepwont quit under the new ownership and along with assets that you might wantinventory as low as reasonably possible,neither will the customers. to retain.You need to calculate the normal-izedearningsbeforeinterest,tax, amortization,anddepreciation (EBITDA)foreachofthelatest fouryears.Takeyourprofitineach year,beforetaxandamortization/depreciationandinterestandadd back any personal expenses that you have run through the business. Adjust your salary to $120,000 per year. The average of the latest four years would be your average EBITDA.A willing seller and willing buyer are the key ingredients. Hopefully you now have a realistic projection of what youcouldexpectforthebusiness. Without a willing buyer, you are not going to sell. A buyer who has a stra-tegic reason for buying will pay the best pricefor instance, a competitor orCanadas National Distributor forExterior Building SupplyRoofing | Siding | MetalBuilding EnvelopeVisit us in Burnaby, Surrey, Abbotsford and Chilliwack for all your supplies. www.roofmart.caProgressive & sustainable buildingenveloPe engineering solutionsNEW CONSTRUCTION - RE-ROOFINGENERGY MODELING - AIR BARRIER COMMISSIONING - DEPRECIATION REPORT ANNUAL REVIEWS & MAITENANCE MANUALSHIGH-RISES - CONDOMINIUMS TOWNHOUSES - COMMERICAL INSTITUTIONALwww.aqua-coast.caTel: 604.946.9910201-5155 Ladner Trunk Rd., Delta, BCV4K 1W4www.rcabc.org l15'