Preparing to Sell Your Business
At VR we know what it takes to sell a business.
Preparing the seller, and aiding the seller in preparing the business to achieve the maximum gain from the sale, are two important roles of the Professional Intermediary.
Owners sell their business for many reasons from retirement, partner disputes, personal relocation, family concerns, the desire for change, illness, or to enter another business venture.
Knowing the reason for the divestiture aids your VR professional in structuring the most advantageous transaction.
VR turns to its professional alliances to help you seek the appropriate tax strategy, succession plan, or investment strategy to again help you maximize the benefit of the sale.
Some key specific items to ensure a successful transaction include the following:
- Having provable books and records to increase the number of potential buyers. Buyers want proof of sales and profits the business has attained in the past.
- Having a reasonable expectation of price and terms. Educated buyers only consider competitively priced businesses.
- A list of assets including furniture, fixtures and equipment. A complete inventory that can be referenced during inspection.
- An attractive lease. Knowing the terms of assignment or of a new lease.
- Best possible appearance. Having the business premises neat, clean and in good repair.
- A professional valuation of the business. A valuation of the business creates a document that proves value to the buyer and shows the business to be competitively priced.
- A covenant not to compete. Preparing the terms of non-competition within an appropriate distance and for a reasonable period of time.
- A specific reason for sale. Buyers will want to understand the reason for sale and be comfortable that there is not undisclosed information that could negatively affect their investment in the future. This could include retirement, burnout, and simply a desire for change.
- Time is of the essence. Be prepared to move forward when a qualified buyer shows interest in the business.
- No surprises. Most adverse situations, such as landlord problems, outstanding loans, tax arrears, unfavorable equipment leases, and even non-compliance with zoning, health or other regulations, can be overcome if known to your professional VR Intermediary.
How to Sell Your Business
The choice to sell your small or mid-size business is one of the most important financial decisions you will ever undertake. You owe it to yourself, your family and your employees to approach its sale with the same careful planning and dedication that you put to work in building your business.
To attract quality buyers for your business, and to secure the best possible outcome for yourself, it is of paramount importance that you work with a dedicated, full time Business Intermediary who has your complete interests in mind.
VR Business Sales / Mergers and Acquisitions and its network of Professional Intermediaries are the right choice to assist you in facilitating the sale of your business.
At VR we know there are no short cuts to success. No easy answers. We know that selling your business to the right buyer at the best price is hard work and takes persistence, professionalism and dedication. Choosing to work with VR, the world’s premier firm means you have made the decision to put peace of mind, and the potential to secure the best possible result for yourself at the forefront of the selling process.
Our goal is clear: to maximize the value you gain from selling your business.
Keep-in-mind that anything that increases sales also increases profits and the all-important cash flow!
Make it easy on the buyer to make a positive decision by making certain your business shows like a winner.