Almost every business at one time or another enters into a banking relationship where they have a line of credit or some kind of term financing with banks. From a cost of capital perspective, debt is the least expensive capital that one can attain and should use appropriate amounts of leverage in running their business. Banks are an important partner in the growth of any successful business and must be treated that way.

Living in this unprecedented time, many businesses are experiencing challenges with their capital resources. Whether you are a business with established cash flows or a growth company, it appears that revenues are going to be negatively impacted in the near term. It is important for those companies having capital requirements in the near future, that they react and start preparing for a capital raise. One can’t overemphasize, those who don’t begin engaging with capital providers for future required capital may likely be left standing in line.

Many articles have been written on why you should engage an investment banker or Many articles have been written on why you should engage an investment banker or M&A advisor to sell your business. If you are going to hire someone to sell your M&A advisor to sell your business. If you are going to hire someone to sell your business, make sure you fully understand how they are going to manage the process business, make sure you fully understand how they are going to manage the process before you engage them. This means knowing who is doing what for you.

In the fall of 2017, the Business Development Bank of Canada completed a study on business transitions.

“41% of all entrepreneurs are likely to leave their businesses within the next five years and 52% of them expect to sell or transfer their business outside the family.”

“Entrepreneurs looking to exit are slowing down too soon: 71% are reluctant to take risks to improve their business performance and 52% have little interest in expanding their business, which may cause them to sell below market value.”