Preparing to Sell Your Business

Solid Financials, Books and Records.

The old adage of buyer beware is especially true of buyers of businesses.  Many have been burned and most are skeptical. Good, understandable , accurate and comprehensive Financial Statements , books and records alleviate Buyer concerns, distinguish  your business and provide a necessary comfort level for the Buyer.

A Good Track  - The best time to sell a business is when it is doing  well. Price and terms are driven more by the track of the business than its overall profitability. A business whose revenue and profit has been increasing for three years, is worth more than a business which has been flat over the same period and much more than a business whose profits and revenue has been declining. This is true even though each of those businesses may have exactly the same current revenue and profit. Therefore , when preparing a business for sale the owner should manage the business carefully with an eye towards establishing the proper track. The VR First Coast Principals are experts in this area and we encourage you to contact us to review this well in advance of marketing your company.

Create the sizzle - While you don’t want to spend money unwisely on expansion programs , to create maximum value you want to create some excitement among buyers. If your business has a good track, the buyer can see that the business is solid and is doing something right. Even better is if you can show new products, programs or strategies that can move it to a higher level. You may not have even begun to implement or spend money on these yet. But just the fact that you have researched them, and can provide a roadmap for improved results can go far to convincing a buyer that the future is ,if anything, brighter than the present and creating the excitement necessary to maximize the value of your business. The Principals of VR First Coast have done this on many occasions for businesses resulting in Tens of Millions $  of increased value for owners and shareholders.  We encourage you to contact us to discuss how this can be accomplished for your company.

Attend to Details – The details are critical. If the buyer finds flaws in the details, they readily conclude there are likely   cracks in the foundation of the business. Don’t let this happen. Make the physical space look first rate. Whether it be a retail store, warehouse, professional office , or manufacturing plant.  Don’t try to sweep small issues or concerns under the rug in the hope a Buyer won’t see them. He will and then wonder what bigger problems are being hidden ? Deal with issues upfront and head –on or show how you are dealing with them. Get rid of problem employees before you market the business or for essential employees consider employment contract s now. The Golden Rule is don’t surprise the Buyer- or us for that matter.  In our assorted business careers the principals of VR First Coast have encountered and dealt with most any serous business problem or issue and can help deal with yours-if we are aware of them.

Identify the Roadblocks - Discontent shareholders , lienholders, optionholders, franchisors, licensors, interested relatives and landlords often have a vested interest in the business and can dereail a deal . These stakeholders often hold the key to getting a deal done. They need to be identified early, their position assessed and a strategy crafted for  getting them behind the program or at least making sure they do not become an obstacle. The principals of VR First Coast have dealt successfully with stakeholders in all types of transactions and are experts in devising strategies to make them fulll partners in the process. 

Your prior attention to these critical aspects of preparing your business for sale are critical to your ultimately receiving the maximum price and best deal terms and cannot be overestimated. The Principals of VR First Coast are talented experts in all of these . We encourage you to contact us as soon as you think you may one day want to sell your business so that we can begin to help you position it properly.