Articles & Updates

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Source: DealWatch Latin America
Date: November 20, 2008 (17:55)

 

Exclusive 
Mexico

M&A, franchise adviser VR Business Brokers starts up business in Mexico

Nov 20, 2008 (DW) - VR Business Brokers, a company that assist and assesses in valuation of businesses and M&A transactions, is currently looking for clients in the Mexican market, where it has recently started operations, CEO for Mexico Juan Martínez told DealWatch. 

Founded in 1979 in the US, VR Business Brokers was created “to supply services between the real estate industry and investment banking in representation of buyers and sellers of main street, upper and middle market businesses that had remained under serviced," the executive explained.

VR Business Brokers has more than 120 offices around the world. "We currently operate in countries that have a close relationship with Mexico. We have 100 offices in the US, 15 offices in Spain and we have presence in Colombia, Chile, Venezuela and Panama," he added. 

Right now, we have just entered the Mexican market, because "there is a very important opportunity to attend SMEs [small or medium-sized enterprises]. We started up in Mexico to support small entrepreneurs sell their businesses in an organized way, with certain rules and with guaranties for the transactions," Martínez said.

"We often see that people sell their business with just a for sale sign on the door and they don't even know its real value," the executive explained.

"The firm covers all industry sectors and company sizes. We sell businesses from USD 50,000 up to USD 150mn. We cover all market needs," he added. 

"We are going to open 30 offices across Mexico. Some are going to be franchises and we are going to own others. The cost of opening each office will be of around USD 60,000 and we will have almost 200 employees in the country. The firm currently operates with 3,500 agents around the world," according to Martínez. 

"There is a study that says that 85% of the baby boomers around the world are going to sell their companies instead of leaving them to their children. That is why there is going to be a great market opportunity for us. There is a lot of interest from the US baby boomers in coming to Mexico after retirement, but not just for living; they are also interested in buying a business to give them something to do," he said. 

"For example, we have already received offers from 20 Spanish companies interested in selling franchises in Mexico. We also advise on the sale of franchises," he added.

Lisia Gonzalez

lg/rb

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