Live/Work Duplex recently renovated in AAA Location on 2 public transit lines. 3,600SF building w/ 3 dedicated entrances, currently with spa/clinic layout on lower 2 levels and a 4 bdrm residential home on upper 3 levels. Featuring 13 recently paved parking spaces, fully fenced back yard area, new furnace & A/C, water purifying system, air exchanger, security system, brand new kitchen and much more! MLS. CALL RYAN BRIGGS
$5,200,000
Well maintained 30 unit apartment building. 1 bach, 23 one bdrm, 6 two bdrm. Several recent improvements including roof, windows, doors, boilers, hot water heaters and more. One passenger elevator. Surface and podium (rear) parking. Professionally managed. Fully rented. Excellent location. Well maintained. Exclusive.
entrance. Pristine 10 stall barn, private riding arena and ample opportunity for outdoor boarding. The property features approx. 45 acres of farmland with an additional 50 acres of forest comprised of mostly maple trees complete with walking/horseback riding trails. Amazing opportunity!
$2,400,000
6,700SF Plaza situated on 1+/- Acre lot zoned C4-48 on major artery in Guelph directly in front of Walmart/Smart Centre. The building consists of 5 fully rented units with 1,600SF of basement space, plus additional income from Bell Communication tower at the rear of the property. Other features include 5 drive in doors, 9’10 ceiling height, plenty of onsite parking, on public transit line, great exposure.
zoning allows for a variety of permitted uses some of which include tradesman and contractor’s establishment, commercial parking facility, convenience retail, repair service and more. Utilities located at the street. MLS
Summa Property Management professionally manages Commercial, Condominium, and Residential Multi-Unit Properties
We ensure that your property receives personal, hands-on, and professional management attention. As a real estate investor, you can rely on our expertise and commitment to service. That affords you the ability to spend your valuable time pursuing your own interests. You can be comfortable in the knowledge that the problems and issues of property management are receiving prompt attention and action.
Our in-house accounting department utilizes professional accounting software to produce monthly financial statements to suit your needs, administration for letters and memos to tenants, and additional managers to service your units as needed.
If you are looking for a motivated, professional organization that understands the real estate management business, Summa Property Management is your first choice!
Condominium Rental Management
This service is offered to those who own one or more individual condominium units not occupied by the owner on a full-time basis, and who require personal property management.
We offer rental services which include placing advertising, receiving calls, host showings, processing applications, completing necessary references, background and credit checks, preparing the lease and receiving the rent payments.
Condominium Rental Services
• Hands-on personal property management service
• Effective leasing programs driven by innovative advertising and marketing
• Rental & maintenance fee collection and deposits
• Regular property inspections
• Supervise maintenance as needed
• Monthly and annual financial statements and reporting
• Rent roll and unpaid reporting
• Management reports
• Approval and payment of all invoices
• Recommendations for property renovations and upgrades
• 24/7 response to emergencies
Ryan Stone, OLCM, CPM®, ARM, ACOM
$5,995,000
$1,599,000
103 CEDAR DRIVE, TURKEY POINT
fully equipped kitchen, takeout windows, WI cooler, 3pc bth, laundry, SS range hood, fire suppression, membrane roof, equipment-Sch D. Incs 2 bedroom year round home freshly painted/redecorated in’23 behind Restaurant incs new deck’23, luxury vinyl flooring’23, Fibre Internet & recently painted exterior.
5363
AIRPORT ROAD, MOUNT HOPE
RARE 194ac parcel of land w/ frontage on Airport Rd & White Church Rd. Incs 2 dwellings, 5048sf building, 4991sf barn & 175ac workable/tiled land (rented yr/yr @ $129 p/ac). Dwelling#1 (2473sf) offers 3 bedrms/2 baths, ins/htd garage addition - Dwelling#2 (1226sf) ftrs 2 bedrms/2baths. Both houses inc roofs’13, water purification’20, sep. wells/septic & 100 amp. Located in general area where proposed future Red Hill to White Church Rd/Airport & Glover Rd expansion may occur - pipeline ROW dissects property-potential severance. By appointment only.
Incredible Investment Opportunity - sit. on 0.44ac prime corner lot enjoying unobstructed westerly views of Grand River. Incs 5226sf garage ftrs 2685sf office space, 2685sf shop space, walk/drive-out basement & 1 bathroom. Serviced w/n/g unit heater, 200 amp hydro & municipal water/sewers. Property can ONLY BE PURCHASED w/same Buyer purchasing 3 Cayuga St & 0 Ouse St. (TOTAL list price of 3 properties is $1,300,000) Sold “AS IS-WHERE IS”. Offers presented at 5pm May 28/24 39 TALBOT STREET W,
1289
0.41ac parcel of vacant land offering 130.50ft of frontage on Cayuga St. S. located in heart of Cayuga -near schools, downtown shops/eateries, Grand River parks & boat launch. Property can ONLY BE PURCHASED w/same Buyer purchasing 0 Ouse Street, Cayuga & 39 Cayuga Street, Cayuga. TOTAL list price of 3 properties is $1,300,000. Rare opportunity to own almost 1 acre (total
8 spacious condo townhomes for sale. All 3 bed,1.5 baths, walk-out basements, private courtyards and attached single car garages. Units fully tenanted and being sold in a bundle, making this a unique investment to add to your portfolio. Tenants pay own hydro, 4+2 visitor parking.Roof reshingled 2020, electric heat throughout, no central air, 8 owned water heaters,windows approx10-12 yrs. There is possibility to add additional units on the approximate 31,000 SQFT. $3,800,000
Future development possibilities in this 4.798 Acre parcel of land that borders Welland/Thorold. Adjacent property, in Welland boundary, is zoned low density residential. Property is close to Brock University Campus (15 Minutes), Niagara College (1km) new residential developments, plaza for shopping and all amenities and close to highway Access. Land only for sale. Current zoning FD - EP2. Contact for more info. MLS H4117393. $3,225,000
• Are you missing out on Commercial
• Do you have a Commercial Client but not the know how?
• Do you want to be part of an Exclusive Mentoring program?
• Do you want to be a part of a Commercial Real Estate Training designed for Realtors?
All submissions from interested parties will be considered. Please submit to the editor at editorial@mediaclassified.ca
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UNDER CONTRACT
Six steps for a winning market-entry strategy
You have your eye on a new market. You’re certain your products or services are a perfect fit. But to get there, you’ll first need to develop a strategy.
Carl Gravel, director, International Expansion at BDC says a market entry strategy is a key tool for clarifying what you aim to achieve, how you’re going to achieve it, and will provide you with a road map for your whole business when you enter a new market.
A typical market entry strategy, he says, can take six to 18 months to implement. That timeline is well worth the effort as it will make sure you have the best distribution channels in place, that you are launching the right product and that your goals align with those of your stakeholders.
Here are six steps you can follow to build a winning market-entry strategy and start exporting into previously unknown territory.
Set clear goals
Be specific about what you want to achieve in your new market, including the level of sales you can expect to reach. Keep referring to these goals as you flesh out your strategy to help you stay on track and confirm that your opportunity, products/services and overall business goals are aligned.
Research your market
Use every means at your disposal to get to know your new market, including going there in person. Gravel suggests attending trade shows as a participant or exhibitor to meet people, learn about the competition and make business contacts in the area.
When getting to know your market, it’s important that you learn
about it in every dimension – not just business-wise but also socially, culturally and politically. If you’re entering a region with a different language or cultural norms than Canada, think about how you’ll communicate with key contacts. Explore all the rules that could affect your product and how you produce and deliver it. You’ll also need to understand your labelling requirements to ensure your packaging complies with local regulations. Learn about different distribution channels, too. At this stage, says Gravel, it’s advisable to seek information and counsel from embassies, consulates and industry associations.
Study the competition
A detailed competitive analysis based on your research and visits to the target market will help you make key decisions; for example, if you need to modify your product or service to customize it for that market.
Gravel says most businesses underestimate the degree of competition existing in new markets. Getting expert advice from a consultant can help clarify the challenges.
Choose your mode of entry
There are many ways to enter a new market. You can use the services of a distributor or agent located there. You might become a franchisee or acquire an existing business. You can even construct an entirely new brickand-mortar facility.
Gravel says in his experience, a lot of companies start by going into the U.S. first, and most choose to partner with an existing distributor. If you choose that path, make sure your strategy includes a unique value proposition for the distributor. Your partner will want to understand what’s in it for them, and how your product or service is different enough to stand out in the marketplace, but not so different that buyers won’t understand what it is.
Figure out your financing needs
Find out if you’ll need to get any financing to support your export venture. You may also want to get insurance that protects your company against losses when a customer cannot pay. EDC offers credit insurance that can help you avoid cash flow issues when an international customer fails to pay.
Develop the strategy document
Once you’ve worked out the details of your strategy, you’ll be ready to write it out. Once created, this document will be your blueprint going forward, detailing your goals, research findings, contacts, budgets, major action items and timelines, and how you’ll monitor and evaluate your success on an ongoing basis.
“Be as structured as possible,” says Gravel. “Once you have a plan, it is easier to follow the action items and not be overwhelmed.”
He also advises having your accountant, lawyer and an external specialist review your strategy. You want to ensure you haven’t missed something that will prevent you from entering the market or require you to pull back after you get there. CI
This is your chance to own part of history and bring this unique mixed-use development to the finish line. Most of the upfront heavy lifting has been done. Ready for buyer to start completing the interior finishes.
This Development Project is situated on a .908 Acre Site located on King Street North & Regina Street North, Waterloo. Intended Development: twenty (20) storey residential apartment building, with underground and structured parking. A total of 223 units (261 beds) are proposed, together with 193 vehicular parking spaces and 165 bicycle parking spaces.
KITCHENER | RETAIL
4411 KING STREET E.
875-3,361 SF | $32.00/SF
Chad Ritzer* x 3033
#8-825 WEBER ST. E. 693 SF | $1,900/Month
James Boudreau** x 3020
James Boudreau** x 3020
KITCHENER | OFFICE
STREET W.
Lester Tobin* x 3023
Chad Ritzer* x 3033 WATERLOO | OFFICE KITCHENER | RETAIL
Eric Frey* x 3118
7 DUKE STREET W. 819-1,226 SF|FRM $12.00/SF
James Boudreau** x 3020
#A1-650 RIVERBEND DR. 1,625 SF | $318.00/SF
Lester Tobin* x 3023
|
Lester Tobin* x 3023
| $11.95/SF
#C-45 OTONABEE DRIVE 9,350 SF | $11.95/SF
James Boudreau** x 3020
Chad Ritzer* x 3033 901 PATTULLO AVE
Each office is Independently Owned and Operated
x3023 14 ERB STREET W. 500-2,500 SF | FRM $1,688/Mo
KITCHENER | RETAIL KITCHENER | IND. CAMBRIDGE | OFFICE 34 WATER STREET N. 2,437-5,204 SF|FRM $12/SF
| IND.
Five tips to manage your cash flow
Cash is king – a common saying in the business world. But surprisingly, few entrepreneurs take steps to manage their cash flow so they don’t wind up with an empty bank account and nothing to pay the bills.
“One of the main causes of business failure is poor cash flow management,” says Susan Rohac, VP, Growth and Transition Capital at the Business Development Bank of Canada (BDC). The good news is, cash flow management can be improved with a few simple steps. “Getting control over your cash flow helps you prepare for slow periods, plan your financing and have peace of mind,” Rohac says.
Here are five steps to get a better handle on your cash flow.
1. Check your profitability
First, make sure your business is earning a reasonable profit. Even the greatest cash flow management won’t help if your fundamentals are out of whack.
Analyze each product and service separately to see whether it’s pulling its weight. Make sure your products are appropriately priced, and work to eliminate inefficiencies. Instead of just chasing sales, chase profitable sales.
Mike Whittaker’s company, Bonté Foods, learned the hard way after facing large cost overruns on two major projects.
The deli meat maker in Dieppe, New Brunswick, a suburb of
Moncton, had to act quickly to restore his cash position.
He analyzed his profitability and realized he had to raise prices to better reflect costs. Whittaker also unloaded lower-margin product lines and launched an efficiency drive while tightening cash-flow management.
The changes had a huge impact, producing higher sales and profit margins. “We learned to watch our cash very carefully,” Whittaker says. “You need to always be ahead of the curve on cash-flow management.”
2. Do a cash-flow projection
Next, prepare a cash-flow projection for the coming year. This is your early-warning system for cash-flow hiccups. Use an Excel spreadsheet or accounting software to plug in expected monthly cash inflows and outflows, including anticipated bigticket purchases.
Use the projection to anticipate slow periods and plan in advance what to do about them. “Through the year, check your actual cash position regularly—once a week or month— against your projection to see how you’re doing and deal promptly with any divergences,” says Rohac.
3.
Finance big buys instead of draining cash
One of the most common cash-flow mistakes is using cash to buy a major long-term asset, instead of getting financing. Even if you feel flush right now, you may suddenly wind up short of cash if you experience a sudden revenue shortfall or rapid growth.
Use your cash-flow projection to plan your financing needs ahead of time, not in the midst of a crisis, when bankers may be wary to lend. Rohac also recommends matching the lifespan of a purchase with financing of similar duration.
4. Speed up cash inflows
Getting money into your business more quickly can save you carrying costs on your line of credit. Some tips: Send out invoices more quickly, ask customers to pay electronically and charge interest to slow-payers.
5. Raise cash quickly in a crunch
Facing an unexpected cash-flow crunch? You can raise cash quickly using various techniques: Approach your bank for help; check your inventory and assets to see what you can sell off, even at a discount; ask suppliers or your landlord for extra time to pay bills; or offer your customers a big discount to earn some quick sales. CI
Source: bdc.ca
Tips for small business owners Surviving your first year
Many successful entrepreneurs can tell you that starting a business can be extremely rewarding but that it can also be stressful.
“Everyone who starts a business enters with excitement and aspirations for success and while no two businesses are the same, success can be difficult to predict,” says Kim Ulmer, regional president, RBC and former vice-president, Small Business, RBC. “Many factors can contribute to the success of your business, but it’s important to understand that building a successful, profitable business takes patience, determination and focus.”
Ulmer offers some tips that can be applied to any new business, increasing its chance of success:
• Make a plan – Creating a business plan is essential to the survival of any business. It will help you identify your customers, your market, your competition and other important aspects of your business. It will also help you identify potential opportunities and obstacles that might not have occurred to you. As your business grows, it will serve as the yardstick against which you can measure your business performance and make sure you’re staying on the right track.
• Establish a support network
– Business owners tend to be
independent-minded and are more inclined to solve problems on their own. However, it is important to not be shy when it comes to asking for advice. You’ll be surprised how many people are willing to share industry information or serve as a sounding board for your ideas. Other people to consider for your professional network include suppliers, customers, accountants, lawyers and financial advisors.
• Be a student of your business
– To be successful, your business needs to stand out among the competition. Your “unique selling proposition” may be your product or service, price, selection, or any number of things. Whatever it is, you need to understand the market, and know what your competition is doing, to ensure that whatever you are offering is more appealing to your customers than anything else out there. Research online, join
industry associations and most importantly, talk to your clients.
• Keep an eye on your cash flow
– Without a clear picture of your daily sales revenue and expenses, you won’t know how much your business is making. That’s why keeping an eye on your cash flow is crucial. It’s also essential for forecasting, as your predictions and planning are based on what happened today. Over time, your forecasting will become more accurate, so you can plan for fluctuations in your business due to seasonal or economic factors. It will also help you determine how much cash you need in reserve to keep you in the black through slower periods.
For more business advice at all stages, visit:rbcadvicecentre.com/ business_advice. CI
News Canada
126,200 SQFT MANUFACTURING FACILITY FOR SALE IN BELLEVILLE ON!
• Unique Turnkey Business Opportunity!
• Award-Winning cheese manufacturing facility in Prince Edward County.
• Sits on 20 acres of land.
• Retail Outlet and Outside Dining Area
• Zoned RU.
• A farm winery is permitted due to the excess of land available to accommodate the County of Prince Edwards Zoning Regulations.
• The building includes: 2 sub-terranean aging caves, a production facility, receiving bay, and office space.
• Platinum certified under the LEED rating system.
$2,888,000
• Located in Belleville’s north-east Industrial Park
• 126,200 sqft industrial facility
• 19.5 acres of land
• Exposure to Hwy 401
• Ideally situated between Toronto and Montreal
• Features 9 loading docks, 4 grade-level doors, and 30x50 ft bay sizes.
• 21 ft - 28 ft Ceiling Heights to Roof Deck
• 7,200 sqft of newly updated office space
• Upgraded 4’ LED shatterproof fixtures
• Available hydro supply is 44,000 KVA with 3200 Amp 600 volts
• Ergonomic design supports easy repurposing for various applications
• Ample acreage for potential building expansion and/or possible severance
$11,500,000
MLS# X8385214
• Approximately 5000 sqft facility. TURNKEY MARINA BUSINESS FOR SALE IN BELLEVILLE
FOR SALE IN PRINCE EDWARD COUNTY
• Located in Wellington, Prince Edward County
• This 17-acre vineyard supplies grapes to a local winery
• Features 146 rows of 8 ft highdensity vines
• Grape types includ 6.58ac Pinot Noir, 3.52ac Chardonnay, 2.88ac Pinot Gris, and 1ac Melon de Bourgogne
• Planted in Hillier clay loam soil
• Zoned RU-1
• Potential uses include bed-andbreakfast, or designing your own single detached dwelling
$1,595,000
• Located on the Millennium Trail in PEC MLS# X8397154
Nestled on the shores of the Bay of Quinte in Belleville
5 acre property • Turnkey business opportunity combined with a waterfront residential oasis
50-slip marina, or opportunity to create a dream business
• Included in the sale are 4 residential bungalows, 3 apartments, 4 tiny homes, and 2 detached houses
• The main waterfront home features an inground pool, hot tub, and hardwood floors
• Explore options such as vacation rentals, event hosting, and dining establishments.
• The property’s mixed-use zoning (02-1) allows for endless creativity and potential
• The Seller will consider VTB financing at 4% for qualified Buyer
$6,500,000
X7268608
• Located in Downtown Belleville
• Multi-use building
• 3 commercial spaces
• 11 residential units with 8 bachelors, 1 two-bedroom, and 2 one-bedroom units
• 2 finished and occupied commercial spaces
• One 2161 sqft open concept unit ready to be completed tenants or owners specifications
• All apartment units are recently renovated and upgraded, showcasing contemporary amenities with the building’s unique architectural charm
• Recent upgrades include a total rebuild with structural upgrades, a new lower roof, security enhancements, and more
• Easy access to shops, restaurants, and public transportation
$4,850,000
MLS# X8483146
• 35.5 acres of vacant land Prince Edward County (Demorestville)
• 660 feet of frontage on both Black Road and County Road 14
• Zoned RU-2
• This property allows a range of uses, from single detached dwellings and home businesses to private home daycares
• Non-residential options include agriculture, farming, or conservation area
• Existing use is Q-Logic Water Solutions operational yard and maintenance building, which includes Trailer Park Model Home on site
• Business and equipment are not included in price but are also available for sale MLS# X7251340
ACRE COMMERCIAL & 2500 SQFT RESTAURANT IN HIGH GROWTH LOCATION!
Long established and successful food business licensed for 70 people + outdoor patio! Huge paved area area. Excellent high traffic and high growth location just North of Newcastle. Owner retiring and willing to hold a mortgage subject to terms & conditions. Perfect opportunity for new family-run operation.
CALL FOR DETAILS
NEW
CLARINGTON
INDUSTRIAL SPACE
FOR
SALE 16K SQFT REMAINING. BOWMANVILLE
Approx 16k SQFT remaining for sale. Incentives & custom fit-out negotiable. Designs completing for Phase II 65000 SQFT self-storage facility also for sale. Est delivery date Q4 2024: over 30 ft ceiling height w/ shipping door planned.
CALL FOR PRICING & INCENTIVES
UP TO 15,000 SQFT INDUSTRIAL W/ DRIVE IN DOORBOWMANVILLE
Rarely offered large-size industrial space with loading door in Bowmanville. Flexible M2 zoning, newly finished office & mezzanine + 16ft clear height. Ideal for manufacturing, potential for automotive, warehousing, workshop and more. Great access to HWY 401 nearby, and competitive rental rates. $12.00 PSF NET + $5.00 TMI
HOME & BUSINESS BUILDING LOT IN PICKERING
Nearly ½ an acre on busy Brock Road ideal for home or business. Great location neighbouring major plaza + high density development. Zoning supports detached house, animal hospital, and more. Owner open to possible VTB for qualified Buyer.
NEW LOW PRICE $999,999
AAA NEWCASTLE COMMERCIAL SPACE. NEWCASTLE
Busy anchored Plaza hosting national tenants with abundant surface parking and signage. Great opportunity for office, retail, or commercial users to find large or small clean & professional space for their business. Units on ground level and second level available. Up to 10000 SQFT for lease!
CALL FOR DETAILS
CHOICE RETAIL OR AUTOMOTIVE BUILDING CLARINGTON
Perfect size! 6000 SQFT on a fully paved 1 Acre lot! Free standing modern building, clear span, 14ft grade-level door all in excellent condition! A+ high traffic & high growth location in Clarington. Ideal for end-user or investment / rental. Exclusive listing.
FOR SALE $1,600,000
TURN-KEY AWARD WINNING RESTAURANT & BRAND W/ BLDING. OSHAWA
Great opportunity to start in restaurant business. Well established and profitable restaurant in downtown Oshawa walking distance from multiple high density sites. Strong brand with many awards: excellent food and recipies. Building in good shape with recent upgrades.
CALL FOR DETAILS
Counterfeit money and cash handling: What you need to know
If you’re a victim of counterfeiting, you might expect to recoup the losses, but that’s not how it works. Victims aren’t compensated, so it pays to verify your bills.
With each new series of banknotes comes ever more sophisticated security features – but they’re only effective if you use them. Here are some of the security features of the latest series of Canadian currency.
• Touch the large number, the shoulders of the large portrait, and the words ‘Bank of Canada’/‘Banque du Canada’ on the front of the bill. You should find they are raised to the touch.
• Tilt the top of the bill towards you and you should see sharp colour changes in the metallic building in the large transparent window.
• Look at the metallic portrait in the large window – it should match the large portrait on the front of the bill.
• Look at the numbers in and around the large window; they should match the value of the note and some will appear in reverse.
• Look at the frosted maple leaf window and check for the transparent outline.
• Note: the $20 bill is the most widely
used and counterfeited banknote
For a complete list of security features for polymer bills and other bank note series, visit the Bank of Canada website.
On top of these security features to look for, you and your employees should practice good cash-handling habits:
• Leave currency on the cash register ledge or other secure area visible to the customer until the transaction is complete in order to avoid disputes over the amount being paid.
• Count change back to the customer to avoid mistakes.
• Make sure the cash or cheque from the transaction is placed in the cash drawer or other secure container before handling the next transaction.
• Don’t make change for someone who is not making a purchase.
• Purchase a counterfeit bill detector and use it.
• Check for the security features mentioned above.
• Create a company policy on the acceptance of non-Canadian currency and post in a prominent place. Include the exchange rate that will be used.
On top of these security features to look for, you and your employees should practice good cash-handling habits
• Have a company policy on rounding cash transactions due to the elimination of the penny and post in a prominent place.
• It is against the law to knowingly use a counterfeit bill or to keep one without a lawful reason. If you suspect a bill is counterfeit:
• Politely explain your concerns to the customer and request another bill.
• Advise the customer to check the note with the local police.
• Notify the local police of a possible attempt to pass counterfeit money.
• Avoid putting yourself and your employees at risk.
• Be courteous to the customer; they may be an innocent victim, unaware the bill is suspicious.
Note: All suspected counterfeit bank notes (U.S. and Canadian) must be turned over to local police. CI
Source: cfib-fcei.ca
Should you buy a business?
Buying a business rather than starting one from scratch allows you to skip the expensive – and risky – start-up stage. Given the stakes, it’s important to thoroughly weigh your business goals, risk tolerance and market opportunities before making an acquisition. Here are some pros and cons of buying a business.
Pros
1. Track record – Buying a business gives you an established customer base, team, business plan and operation. No need to start from scratch.
2. Income – The best acquisition targets are likely to already have solid sales and profits. A new venture, on the other hand, can take a long time to build revenue and become profitable, and the risk of failure is significant. Only about half of Canadian start-ups are still operating after five years, according to Innovation, Science and Economic Development Canada.
3. Financing – The assets of the company you are buying can be used to help secure financing needed for the purchase. Lenders are less likely to take a chance on a start-up.
4. Vendor assistance – Existing owners often help finance the purchase of their business by providing vendor financing. Besides being a good source of patient capital, the vendor’s investment provides motivation to the former owner to help make a smooth transition.
5. Market knowledge –
Acquisition may be a good strategy if you want to expand into a new industry or geographic location where you lack contacts and knowledge.
Cons
1. Poor fit – It can be difficult to find the right company to acquire – one that is a good fit with your existing business culture and strategic goals. A poor choice can cause the acquisition to
become a sinkhole for your time, money and other resources.
2. Integration challenges –Integrating a new company into your existing operations can be harder and more time consuming than entrepreneurs realize. Expected payoffs often don’t materialize as quickly as planned.
3. Vision conflict – It may be harder to impose your vision on a company that already has its own culture and history than if you were to expand a business you already own. Some entrepreneurs like the challenge and excitement of starting an entirely new company or embarking on an expansion where they can put their stamp on from the beginning.
4. Dependence on the old guard – A rocky ownership change can prompt key staff to leave and imperil customer relationships. That can be especially problematic in a business that is highly dependent on the involvement of the owner or certain employees. The decision may rest on market and growth opportunities. Acquisition may be a good strategy if prospective companies are undervalued because of market conditions. Conversely, if valuations are high, you may need to obtain more financing, potentially reducing the long-term returns from the acquisition.
Whatever your decision, the project will have a greater chance of succeeding if you have a clear, detailed understanding of why you are proceeding and how the venture will meet your business goals. CI
Source: BDC
Premium investment opportunity (6% cap rate) in the coveted Leslieville neighbourhood. This 3 Storey Commercial/residential property is comprised of 1 retail space on the main floor (Approx. 2,200 sqft) and 2 residential apartments on the second and third floors respectively. Conveniently located on Queen Street East, the location offers excellent foot traffic and with the increased density coming to the neighbourhood, offers sustainability moving into the future. For more information visit, www.theeastside.ca
SkyViews Your Price for ‘Upside’
SkyViews Your Price for ‘Upside’
Finding Value in the Grey Areas
Finding Value in the Grey Areas
By Cliff Ford, Skyview Realty
By Cliff Ford, Skyview Realty
With the ever-increasing demand for multi-unit residential properties amongst investors, a trend has been emerging over the last number of years. Many properties, and certainly buildings with 30+ units, are seeing multiple offers as part of an open bid submission process.
With the ever-increasing demand for multi-unit residential properties amongst investors, a trend has been emerging over the last number of years. Many properties, and certainly buildings with 30+ units, are seeing multiple offers as part of an open bid submission process.
If you aren’t familiar with the bid submission process, it is the act of marketing a property for sale without providing a price. Typically, the Seller will provide all due diligence documents in advance of the offer deadline to allow buyers to determine what they are willing to offer on any given property. Sellers love this process as it can generally lead to multiple offers and can create a bidding war that drives up their end price. Buyers dislike this process, however, because they prefer to have some guidance on pricing going into the offer stage. As a brokerage, we are caught in the middle of wanting to deliver great results for our Seller and satisfying our buyer clients’ demands for more investment properties.
If you aren’t familiar with the bid submission process, it is the act of marketing a property for sale without providing a price. Typically, the Seller will provide all due diligence documents in advance of the offer deadline to allow buyers to determine what they are willing to offer on any given property. Sellers love this process as it can generally lead to multiple offers and can create a bidding war that drives up their end price. Buyers dislike this process, however, because they prefer to have some guidance on pricing going into the offer stage. As a brokerage, we are caught in the middle of wanting to deliver great results for our Seller and satisfying our buyer clients’ demands for more investment properties.
What we have been noticing with these open bid properties is that ‘upside’ becomes a very common discussion point. The value a buyer places on the upside in a building can often become the factor that makes their offer stand out among the rest, at least as it relates to purchase price.
What we have been noticing with these open bid properties is that ‘upside’ becomes a very common discussion point. The value a buyer places on the upside in a building can often become the factor that makes their offer stand out among the rest, at least as it relates to purchase price.
When considering what the upside is on a property, its more than just rental rate upside, especially considering the lower vacancy rates seen in the Ontario market nowadays. Beyond the upside of what you could rent turned-over units for, investors are looking at upside in the utility consumptions by implementing programs to replace lighting with LED bulbs, installing Low-flow toilets in every unit, and investing in higher efficiency heating equipment. Upside can also be found in converting excess space in a building to either additional units, commercial space, or amenities that could draw in greater tenant rents. Sometimes even the location of the property itself
When considering what the upside is on a property, its more than just rental rate upside, especially considering the lower vacancy rates seen in the Ontario market nowadays. Beyond the upside of what you could rent turned-over units for, investors are looking at upside in the utility consumptions by implementing programs to replace lighting with LED bulbs, installing Low-flow toilets in every unit, and investing in higher efficiency heating equipment. Upside can also be found in converting excess space in a building to either additional units, commercial space, or amenities that could draw in greater tenant rents. Sometimes even the location of the property itself
can have a form of upside for a particular buyer, in that they may own a building nearby and could create valued upside in the sharing of mutual expenses between each property.
can have a form of upside for a particular buyer, in that they may own a building nearby and could create valued upside in the sharing of mutual expenses between each property.
Whatever the upside factors may be on any particular property, when going into a purchase process, understanding what YOUR value is on the upside will give you a leg up when bidding against other buyers. It appears that, at least for the time being, the sale price of the property is no longer determined just by market comparable sales. It is now the grey areas of upside that are driving the prices higher. Of course if every seller had their way, the Buyer would be paying for 100% of the upside in their purchase price but realistic sellers also know that they need to leave something on the table for a buyer. As a buyer, you need to know what the upside is and how much you are willing to pay for that upside. It is a business decision that only you can determine based on your operations.
Whatever the upside factors may be on any particular property, when going into a purchase process, understanding what YOUR value is on the upside will give you a leg up when bidding against other buyers. It appears that, at least for the time being, the sale price of the property is no longer determined just by market comparable sales. It is now the grey areas of upside that are driving the prices higher. Of course if every seller had their way, the Buyer would be paying for 100% of the upside in their purchase price but realistic sellers also know that they need to leave something on the table for a buyer. As a buyer, you need to know what the upside is and how much you are willing to pay for that upside. It is a business decision that only you can determine based on your operations.
To be fair when discussing bid submission processes, it should be stated that price may not always be the only factor when a seller chooses one offer to work with over another, but it is likely the most significant factor. As an example, buyers are becoming more and more organized in their purchasing processes in order to streamline their conditional periods and closing dates, as this can also help to achieve a sign back from a Seller when multiple offers are on the table. Especially if all offering prices are neck and neck, the terms of the offer becomes an important factor for a seller.
To be fair when discussing bid submission processes, it should be stated that price may not always be the only factor when a seller chooses one offer to work with over another, but it is likely the most significant factor. As an example, buyers are becoming more and more organized in their purchasing processes in order to streamline their conditional periods and closing dates, as this can also help to achieve a sign back from a Seller when multiple offers are on the table. Especially if all offering prices are neck and neck, the terms of the offer becomes an important factor for a seller.
You may not be a fan of the open bid submission process, but it appears as if this new trend will be sticking around. By doing proper due diligence upfront, good research on the property’s market, and determining the price you want to pay for the upside, you can still achieve great acquisitions in this tight and highly sought after investment class.
You may not be a fan of the open bid submission process, but it appears as if this new trend will be sticking around. By doing proper due diligence upfront, good research on the property’s market, and determining the price you want to pay for the upside, you can still achieve great acquisitions in this tight and highly sought after investment class.
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