I am a student living in Canada, over the last 2 years I have built out a company in a niche market where at the time there were a couple of competitors (now around 5-6). 3 of them are VC funded.<p>I am doing this part time still and trying to earn my business degree but now I am finishing up and want to sell this business so I can try something new, the business generates around 2 million a year (CAD) in profits, so I am wondering what sort of 'investment banks' or people I should get in touch to sell this company.<p>I love working on this and would not mind working on it a more, the sad part is, being in Canada and not a active guy in the 'VC/Tech' scene so I don't know which route to take or who to approach.
I've got to ask why sell? If it generates 2 million in profit a year, it should be generating plenty of cash to bank roll your next endeavor.<p>Since you are the only one maintaining you can simply hire 2-3 people to do the work you are currently working and keep the rest of the profit. Most people here would kill to have a business that is generating 2 million in profit.
> the business generates around 2 million a year (CAD) in profits,<p>Are you serious? In Canada? Why in god's name would you sell this? Hire someone to do the dirty work for 50K and live off the rest until you grow old and gray.<p>Why would you even think otherwise?
Forgot to mention, I built it up myself and still maintain it myself only and that I am looking for a exit because I want to pursue something even bigger with the funds I get from selling this.
Can you share what it is? I can atleast intro you to some of my investors if the business/product is compelling and you would at all be interested in taking some investment and continue working on it? Or you can email me (see my profile).
There are private equity groups that acquire companies with profits of this size. But I don't know the industry well enough to suggest names. I would try and get some names from any investment bankers you know -- maybe alums from your biz school if you don't know anyone personally.
Can't help you with finding a VC, but I can tell you that others will be interested in the following:<p>How will this business fare with you gone completely?<p>Is it something anyone can be trained to do?<p>If so, what barriers to entry are there to keep someone else from duplicating what you've done without buying you out?
I suspect the most likely buyers would be:
(a) A competitor in the same space looking for market share or
(b) A firm in an adjacent market looking to diversify<p>Those are only my initial thoughts and there are probably other ways of looking at it.<p>I'm guessing that one of the the three VC funded competitors could be a likely acquirer. Given that there are three of them, you might even be able to create a bidding war (assuming you have something worth bidding for, e.g tech, market insight/share).<p>I'd do some research on each of those companies to make sure you have something of value to them and then try to meet with the founders/CEOs informally, if possible.
Talk to a bank who can represent you. Typically they come up with a pitchbook/deck and try to pitch to prospective companies. They charge anywhere between 5-7% depending on your business. Best way to get to a banker who can sponsor is to talk to a lawyer who is in the startup world.<p>If you want to send direct messages, do the pitching and negotiations yourself, try linkedin paid service.
You say you're based in Toronto. Have a look at the people behind <a href="http://www.startupnorth.ca/" rel="nofollow">http://www.startupnorth.ca/</a> and get in touch with them, I'm sure they'd either be interested themselves, or would be happy to make some introductions.
Where in Canada are you based? Your options may vary if you're in a big market (TO, Vancouver, Montreal...) or not.<p>That said, I'd imagine your best route is to find local investor/angel/business-mentor types who can recommend a firm that specializes in getting companies acquired. I'm based in Vancouver, and my business partner has definitely had getting-to-know-you meetings with a law firm - recommended by an investor - that handles that sort of thing.
Have you been approached by any VCs in the past? I would revisit that if possible.<p>In my experience, there is no shortage in VC contact for any, even modestly, profitable business online. So, I am sure you've heard from at least a small handfull.
Talk to Benjamin Yosko => <a href="http://www.instigatorblog.com" rel="nofollow">http://www.instigatorblog.com</a>. He is very approachable, lives/works in Montreal, and recently sold his startup. Tell him Captain Recruiter says hello.