At VR, we are acutely aware of what it takes to get your business sold. It all starts with your commitment to sell. Specifically, that means being prepared to sell at a price and terms that are consistent with the marketplace.
Documentation: Having and producing the necessary documentation required to prove the profitability and viability of your business is instrumental in successfully closing the sale with a qualified buyer.
Valuing Your Business: One of the single most important steps in preparing your business for sale is the valuation. Most business owners don’t have a clue what their business should realistically bring on the open market. We have the staff and necessary experience to help you determine what a reasonable expectation of value should be for your enterprise. Knowing “where you stand” is the only way for you to objectively gauge offers.
Marketing: VR has over a hundred offices nationwide; we can confidentially market your business opportunity through a wide array of channels that give you national and/or international exposure all the while maintaining discretion.
Qualifying Buyers: You’ve got enough to do each day just being occupied with the operation of your business. Our experience in dealing with prospective buyers saves you time, energy and aggravation ensuring that your potential suitor has the financial ability and necessary business acumen to complete the transaction and carry your business into a bright tomorrow.
No Down Time: As potential buyers express interest in your business opportunity, you are asked to do what you do best… run your business. We will engage the buyer and field their questions prior to a face-to-face meeting with you.
Meeting: Once the VR® intermediary has determined that you have a viable buyer and the initial questions have been answered. A meeting will be scheduled for you and the buyer to meet. You will never have to meet a buyer without a VR representative present. This meeting is an excellent place for you to get a first impression of the buyer. Keep in mind that the buyer may be seeking installment terms from you as the deal progresses.
Financing: We will assist the buyer in obtaining financing. VR has literally hundreds of lending institutions who solicit us for our pool of potential loan applicants.
The Offer: We will encourage a fair and reasonable offer to purchase from the buyer which will never be presented to you without an accompanying earnest money check. When we do present you with an offer, we will explain the buyers offer in clear, concise terms and explain their reasoning behind the offer. You will have reasonable time to review the offer and after adequate consideration you may choose to accept the offer as written, form your own counteroffer or we will be happy to lend our knowledge and experience to assist you in constructing a counter.
Acceptance: It is during the offer and acceptance phase where your intermediary’s experience can be most valuable. They will use their training and negotiating skills to create a mutually acceptable agreement. Once you and the buyer have agreed upon price and terms the contract becomes a contingent purchase and sale contract.
Due Diligence: Since we are selling a privately held company, the buyer is obligated to make their offer prior to verifying the representations made about the business. Naturally, there will be an inspection period known as due diligence where the buyer will be given access to any and all information about the business that they require to satisfy themselves that the representations they received were indeed accurate. *Note – There is no faster way to lose your deal than to surprise the buyer with hidden facts in due diligence.
Contingencies: Once you have successfully emerged from due diligence we will go to work removing contingencies. An offer can be contingent upon a multitude of different criteria once those criteria have been satisfied they must be removed from the contract.
Closing Documents: Most of the necessary closing documents can be prepared by us but you are encouraged to consult a business attorney for counsel.
Escrow: The escrow agent will receive the funds from the lending institution and distribute them according to the directions on the closing statement. The escrow agent will perform lien searches, title searches, certificates of good standing, fictitious names etc… Once all the documents pass formal inspection and acceptance by all involved parties, the funds will be delivered and possession given over to the buyer.
Congratulations! You are now on your way to your next great adventure.