Step 1 Establishing the Value & Marketability of your business
Valuing a business is an art not a science. No single one formula or rule can be applied to valuing a given business. At VR in Scottsdale, we use several approaches to establish the value and marketability of your company:
- Identify the business’s gross revenue, profit, expenses, inventory, FF&E, employees and compare to various industry financial ratios
- Establish the Adjusted Cash Flow – by adding back to the net profit the expenses that you charge the business that are not directly related to the running of the business
- Research market comparables:
a. Business comps for similar businesses
b. VR Business Broker database of over 70,000 businesses sold
4. Understand the barriers to entry, relationships with clients, uniqueness of products / services offered and
working capital required to effectively operate the business.
5. Review valuation analysis with 3rd party lenders and consider various acquisition financing requirements and their affect on the sales price ( i.e., working capital required)
Using the above combined methods yields a range of value in establishing the sale price of your business.
Step 2 Understanding your unique business
- Understand your business operation to uncover “hidden value” that will lead to you getting top dollar value for your company.
- Identify marketplace trends and growth opportunities.
- Identify what steps you can take now to get the most for your business.
- Understand unrealized potential your business
Step 3 Marketing your business
- Depending upon your business situation, we jointly establish an appropriate marketing plan to generate the most qualified buyers while maintaining confidentiality.
- We prepare a comprehensive prospectus that presents your company in the best possible light to qualified potential buyers.
- We present your business to our buyer database of companies looking to acquire businesses, private investment groups, and high net worth individuals.
a. We carefully target only qualified buyers to help assure that maximum confidentiality is maintained.
4. For certain businesses, we will initiate a targeted solicitation campaign to firms or buyers most likely to be interested in a strategic acquisition of your business.
5. We present “blind ads” sharing only necessary facts to generate buyer interest for your business. We list your business opportunity with key business exchange portals known to brokers and serious business buyers to cast a large nation-wide net for qualified buyers.
6. We will co-broke with most brokerages in the Valley meaning, that the chances of a qualified buyer acquiring your business is much greater than if we only presented your business to buyers generated by VR Business Brokers in Scottsdale.
7. We advertise regularly in the Arizona Republic classifieds, Sunday edition
Step 4 Qualifying Prospective Buyers
Premier Sales recognizes that strict confidentiality is critically important to our clients. Our primary objective with potential buyers is to prescreen and qualify potential them from both a financial ability and background experience perspective. Only after a buyer undergoes our strict qualification process will the seller have any involvement with a potential buyer. We will not waste your time nor send privileged information to unqualified buyers.
Step 5 Negotiating & Closing
Often the most challenging and critical aspect of selling a business is in the negotiation stage. VR acts as a team leader during negotiations, working together with additional professionals such as CPA’s and attorneys. Our experience and negotiating skills can make a dramatic difference in the final outcome of the sale. We not only work to get the best possible price, we structure a transaction that is most advantageous to you.
During the closing, we help you to navigate the complex issues that often surface during the final hours leading to closing. We anticipate potential problem areas in advance and know how to work through the final details to affect a smooth transition and satisfactory closing.