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May, 2009
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| VR Welcomes New Owners
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It is an exciting
time for our company as we welcome several new owners that have joined VR
domestically and internationally. These new additions to VR will help
elevate us to the next level of business sales.
Jay Cremer - North Fort Lauderdale, FL;
Brad Elliott - New Jersey;
Omar Garcia - San Antonio, TX;
Larry Lane - McKinney, TX;
Joe Perlman - St. Petersburg, FL;
Joel Soorenko - Naples, FL;
Angel Redondo Vega, Ju
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| Distinguishing Private Equity/Venture Capital Investing from Others
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There are
a few features that distinguish PE/VC investing from other types when buying a business. It’s important to pay attention to these differences. Knowing
these facts will save you from a lot of wasted time and frustration and avoid
going down the wrong path.
Active Involvement in Overall
Investment Process
The PE/VC
professional will be actively involved in identifying the investment,
negotiating and structuring the sale and monitoring the portfolio business
after
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| Why a Buyer Can Withdraw Their Earnest Money Deposit Following Due Diligence
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A buyer’s earnest money deposit is
to assure that he or she will complete a transaction after agreeing to do so.The
nature of an offer to purchase a business, as opposed to real property, is
that the seller builds certain contingencies that allows the buyer
to prove the facts presented.
Some of these facts may be:
Are the presented financial documents correct?
Can I obtain the lease that I need?
What happens if I
cannot receive the needed out
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| What Makes Up the Private Equity and Venture Capital Investment Community
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The
community that composes private equity and venture capital investing is
composed of merchant banking subsidiaries or divisions of large institutions.
These
include:
Bank Holding Companies;
Insurance Companies;
Large Industrial Corporations;
Investment Banks.
In
addition, there are many free-standing specialized investment bodies that form
solely for PE/VC investments. Some of these include publicly or privately-hel
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| Questions that You Have to Ask Yourself When Looking to Buy a Business
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Changing economies always make both potential buyers and sellers nervous. If you're looking into buying a business, this is what you have to ask yourself:
Will this business continue to be attractive to customers in the future as it has been in the past?
If the answer is yes, you can consider a business' performance over the last three years to determine the viability of your intended purchase. If one has three or more years of profitable performance, this will be a success
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| Avoiding Common Mistakes When Valuating Your Business
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As important as valuating your business is before you decide to sell, you don’t want to run into making some common mistakes when you’re trying to estimate.
Make sure that you pay attention to the many factors that exist if you are going to be selling. Specifically, you wantto avoid doing the following:
Projecting Unrealistic Growth
This is the most common mistake that’s made when a business determinestheir business valuation. If you are projectingaggressive growth
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| Finding the Businesses that are Ripe for Buying
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A business is going to be more valuable to you as a buyer
when the synergies, economies of scale and other integration benefits can be
achieved. You can determine which ones are in the right condition to acquire
when you look at the following characteristics:
High Potential for Growth
– A buyer is going to look for a business that has a high historical or
potential growth – companies with new products and services and in a new
market.
Specialty or New
Products
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| Choosing the Business that’s Right for You
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When
you’ve decided to go into ownership, you need to know what type of business
that you want to pursue. You should start
by identifying the products and services that you intend to deliver. You can
easily narrow down your choices by looking at the following factors:
Researching Costs
Examine the costs of businesses in different industries and regions.
Look into Imported Goods
Identify
which goods and services that local companies and other organizations buy fro
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| A VR Intermediary is the Best Source of Educating Yourself on Owning a Business
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When you're buying a business for the first time, you're going to feel a little apprehensive. It's a major step for anyone that decides to go into ownership for the first time. However, you don't need to go to school to educate yourself because here at VR, we can guide you every step of the way.
In almost every
case, the former owner agrees to train you in the successful operation of that particular business. You won't
have to be concerned with the risk of receiving outdated or irrelevant
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| Appraising Your Business’ Intellectual Property
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Intellectual property has become a hot topic. Make no
mistake that patents, trademarks and copyrights can become a valuable asset in
the portfolio of your small business, and should be managed prudently.
It’s always an ongoing and daunting question for a business
owner to face when the time comes to sell – “What do I have to sell?” Believe
it or not, the main asset that you have to market is goodwill aside from the
phone number, address and equipment. Yet de
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| When to Apply Restrictions and Prohibitions in the Business Deal
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When negotiating
the sale of a business, it’s not uncommon for both the buyer and seller to miss
putting much thought into the post-close conditions and terms. Obviously, both
parties want to protect themselves against potential harm that either could
inflict. However, this topic can be overlooked when so much time is spent on
the actual transaction.
The fact
is the buyer is going to have concerns about the seller possibly taking away
the goodwill that they’ve created
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| Considering Whether to Own a Business
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It’s
always a big decision when you decide to go into business ownership. There are
many variables that come into play that you need to consider before taking this
step. Not every person out there is cut out to be one. Some have the attributes
and qualities necessary to become a successful entrepreneur while others can
hit the skids within six months.
You need
to ask yourself what are you looking for by going into ownership – freedom,
fortune, a chance to leave the co
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| Preventing Buyers from Foregoing Later Payments to the Seller
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Every VR business intermediary carefully screens very potential buyers well in advance of
even disclosing the existence of a business opportunity. Only when the intermediary is satisfied will a
buyer learn that a business is for sale.
A VR professional intermediary’s track record is exceptional with a success
rate of well over 96%. In addition to
the screening process, consider the amount of the down payment and the buyer's
credit report. No one will walk away
from a substantial
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| Following the Correct Path to Selling a Business
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The time
always comes when you decide to sell your business. You may have not thought
about it when you were looking to buy, but this situation happens all the time:
the once-in-a-lifetime opportunity becomes a financial and psychological
albatross that you seek to have someone else take over.
The Right Time to Put the Business
on the Market
Frequently,
an owner allows blind devotion and optimism, inaction or a combination of the
three to keep from offering their business
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| Enhancing Your Mailing List Increases Your Campaign Effectiveness
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Getting
the mailing list right is vital. Basic mailing lists simply include names,
addresses, job titles, and telephone numbers of customers and prospects. The
basic list can be refined by adding information about buying patterns,
lifestyle, and many other factors. This will provide a comprehensive picture of
customers and prospects.
Verify All Internal Sources of
Information
Your
customer records are probably your most valuable asset as they invariably
generate the highe
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| How to Prepare Your Business for a New Owner in Two Years
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Today, a buyers needs confirmation of the
business’ financial standing. This
means solid and verified financial documents by an accounting firm. The most valuable ones come from updated and correct tax reports. You shouldn't be insulted if a potential buyer asks you to validate your records as he is only showing due diligence.
Additionally, the
appearance of your business is vital. Buyers like well-maintained equipment, clean facilities and current inventory that can be sold. You wa
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