December 2019

THE WAVE OF OWNERSHIP CHANGE
Series for Business Owners

The Big Deal Breaker

Most owners of medium sized businesses in Canada are now in their 50’s. Over half of them have indicated, within the next 5 years, they plan to sell their business to fund retirement, the majority to an outside third party.

Selling a business is a complex task. Many owners have never been through the process before. The stakes are big - their ability to comfortably retire by securing fair market value for the business they spent most of their working lives building.

The Big Deal Breaker

With few exceptions, the most common reason the sale of a business fails to close is the owner of the business and the buyer are not able to agree of the value of the business. Sometimes the discrepancy can be substantial. A business could have a market value of $16 million - the owner is looking for $18 million and the buyer is offering $14 million. A gap of this amount is tough to resolve even with earn outs. It is important negotiations be handled in the way which is fair to the parties involved with the objective of bringing the seller and buyer to an agreement on terms.

Our company’s success has been based on firm but friendly negotiations which bring the both seller and buyer together by respecting the financial requirements of both parties.


Rincroft facilitates the divestiture of medium sized businesses. Our clients are companies which are well established and profitable. Since its inception, our company has completed the sale of more than 50 business across a wide range of industries. We also provide advisory services assisting owners in building sustainable value even if they have no immediate plans to sell.

Find out more at

Phone: 519-572-3093
e-mail: coneill@rincroft.com