We provide the following services to properly facilitate the orderly transfer of your business:
- We work with the Seller in establishing a price for the business.
- We prepare a marketing strategy to maximize the price.
- We market the business through many different methods, including our own database of buyers, the Internet, our network of brokers and industry experts, trade publications, newspapers and other sources.
- We interview, screen, and qualify prospective buyers.
- We will show the business only to qualified buyers, allowing you to run the business. If the prospect has questions or wants to meet with you, we will arrange a time that's convenient, and we will attend all meetings.
- We are knowledgeable and skilled negotiators working on your behalf.
- We will work with your outside advisors to help make sure the sale progresses smoothly.
- We will assist the buyer in dealing with the various governmental agencies for licensing, permitting, etc. telephone and utility companies, and any other outside service providers, to facilitate an orderly transfer.
We do not charge our sellers fees for packaging, marketing, or determining pricing, although we perform a full range of business intermediary services. Our compensation is earned when the business sale is completed, thus your success and ours are closely aligned.
SELLING YOUR BUSINESS - FAQ’s
Frequently Asked Questions:
- What is the main benefit of selling my business through a brokerage?
- How does VR protect my confidentiality?
- What is most important for me during the business sale?
- What about financial information. What must I provide?
- How does VR market my business to potential buyers?
- How long will it take to sell my business?
- How long is the training for the buyer?
- Are Broker fees charged upfront?
What is the main benefit of selling my business through a brokerage?
Some business owners feel that they would save money if they sold their business themselves. However, most business and property owners do not have a strong understanding of the many factors involved in the deal structuring and selling process. When the seller has limited knowledge about the available alternatives for structuring the deal, he is at a costly disadvantage. Items such as leverage buy-outs, leases, royalties, earn-outs, consulting agreements and non-compete contracts can add immeasurable value security to the deal for both the buyer and seller.
How does VR protect my confidentiality?
Confidentiality is vital to the selling of a business. If employees know that you are selling and changes are coming, they may seek other opportunities. Competitors may use this information as a selling tool to gain your clients' business. Vendors may not continue to extend credit terms. The profitability and market value of the business may deteriorate due to a breech in confidentiality. At VR, we understood the importance of confidentiality and follow stringent processes in qualifying buyers. This includes requiring qualified buyers to sign Confidentiality Agreements and obtaining financial and personal information prior to presenting your business. Additionally, the extra steps we take to prequalify prospective buyers avoids wasted time and effort of buyers who are not serious or financially qualified.
What is most important for me during the business sale?
It is important for the owner to maintain the business at peak operating capacity. The performance and productivity of the business is what is really being sold. Many owners make the mistake of trying to sell their business themselves without realizing the time it will take away from their own business. This lost time from running the business properly may directly result in a loss of business. Operating your business as if it weren’t for sale is the most important objective of a seller. Focus your time and attention on your business; we’ll focus ours on marketing and selling it for you.
What about financial information. What must I provide?
The more information a broker can provide to a buyer, the sooner the business will sell. This is one of the most important, and often overlooked, realities of selling a business. Buyers are looking for the financial opportunity and stability of a business. Financial information needed to value your business includes:
- Two to three years of detailed and current financial statements, balance sheets, and income tax returns.
- List of furniture, fixtures, equipment, inventory, trade names, patents, and other assets to be transferred with the company.
- Real property and equipment leases.
- Any other contractual relationship of the business.
- Other information which will affect company operation.
How does VR market my business to potential buyers?
As the largest and most established business broker network in the world, VR Mergers & Acquisitions has years of experience in developing an effective process to sell a business to prospective buyers. First it’s important that we gain a good understanding of your business. We research, analyze and prepare a customized marketing plan for each business we represent.
Next, we market your business via multiple resources including our own global network, multiple national and international web-sites, and if applicable, trade journals, newspaper, business publications and/ or directly to specific targeted clients and companies, all confidentially.
Finally, we continually monitor the feedback and inquiries regarding your business, repositioning it when needed to maximize exposure to the right buyers. We also communicate with you to share or learn about any changes that may affect the sale of our business- if your business changes, sales change, market has changed, etc. and adjustments are needed to keep your business listing competitive.
How long will it take to sell my business?
There are many factors (i.e. asking price, the buyer’s ability to secure financing for the purchase of the business, the business’ location, local economic conditions, the nature of the business) affecting the length of time it takes to sell a business. Consequently, there are wide variations in the amount of time required to sell a business (in some cases weeks or years). With that said, a selling period of six to nine months would be average.
How long is the training for the buyer?
Training times can vary depending on the type of business, whether specialization or complexities are involved, the qualifications and motivations of the buyer and the goodwill of the seller. Generally, training and assistance by the seller consists of two to four weeks of training in the business with additional time available for a nominal fee. Sometimes the buyer acclimates themselves to the business very quickly and may elect to waive some of the training period. However, if you are financing any portion of the purchase price, you still have a financial interest in the business, so properly training the buyer is in your best interest.
Are Broker fees charged upfront?
No, not at VR. We earn our commission when we’ve provided you a qualified buyer and an acceptable offer. In short, we’re paid when your business sells. Some companies require deposits and partial fees in advance, but we believe in earning our commission upon completion of our service. Once you’ve decided to sell your business, one of our VR intermediaries will assist you in reviewing all of the terms in our Listing Agreement.