Last week our
CEO Peter King took a look at the
first 10 steps in the VR Transaction Process. This week we will continue with the remaining 10. This proven methodology is time tested and will guide you down the path to a successful transaction. Without further ado:
11. Offer Acceptance or Counter Offer:
You may accept the offer as it is written, or with the help and experience of your VR Intermediary, create a counter offer or reject the offer entirely. If necessary, we will facilitate the negotiations of the counter proposals.
12. Mutual Acceptance:
When all parties agree to the terms and conditions of the sale, and sign all counter offers and amendments, the offer becomes a contingent Purchase Agreement.
13. Assist with Financing:
VR has many financial resources including lenders who specialize in business loans. Your Intermediary will assist you and the buyer in determining which method of financing will work for all parties and lead to a successful closing.
14. Due Diligence:
Nearly all offers are contingent upon the buyers inspections and approval of all aspects of the business operation including financial records. The handling of the due diligence process is a crucial step in a successful divestiture as it verifies to the buyer that they are indeed acquiring what they believe has been offered for sale.
15. Contingency Removal:
The buyer removes the contingencies for the agreement to become a binding offer for purchase and sale. At this time we are now ready to open escrow.
16. Escrow:
Your VR Intermediary will send the Purchase Agreement and other documents to the escrow representative who then drafts the escrow documents. Escrow is open as soon as both buyer and seller have signed the escrow documents. Depending on where you live or are acquiring the business, this process may be handled by other parties. Your VR Intermediary can inform you in detail what to expect in your market.
17. Lease Assignment:
We work to present the buyer’s experience and financial qualifications to the landlord in order to obtain a lease assignment or a new lease satisfactory to the buyer.
18. Note and Lien, Search, Clearance or Assumption:
If there are existing loans, liens or equipment leases that the buyer is to assume, we can work with the lender, leasing company, legal or escrow representatives to transfer those obligations. All liens must either be cleared (closed) or transferred to the buyer, if part of the contract.
19. Inventory:
Arrangements are made for you and the seller to count and price the inventory if it applies to the business that is being sold. If it is a large or complex inventory, it may be necessary to outsource this function to an inventory service.
20. Closing:
The signing of the final closing documents may be done in person or, in many cases, done via courier, e-mail or fax. The business is transferred, funds are distributed and VR has facilitated another successful business transaction.
Allow VR’s experience and 20 Step Transaction Process to work in the selling of your business. You have worked hard your entire business career to build a successful business to provide for your retirement. Don’t leave the outcome to chance. If you want the best result, hire the best talent.