VR Has Sold More Businesses In The World Than Anyone.®
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Selling Your Business? Learn to Think Like a Buyer
By JoAnn Lombardi, VR Business Brokers/Mergers & Acquisitions, President
You’ve built a great business with love and care. It has grown larger than you’d ever imagined. It generates a nice profit. As a result, this has allowed you and your family to live comfortably.
Now, you’re ready to sell. You assume there’s a buyer out there. You want someone to pay you a fair price and nurture the company with the same attention you have. Most importantly, selling the business is a major part of your retirement plan.
Needless to say, buyers look at businesses differently than sellers. So to achieve the outcome you want, it’s important to think like buyers and understand how they evaluate a business.
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Earnout Agreements Can Bridge Valuation Gaps
By Peter C. King, VR Business Brokers/Mergers & Acquisitions, CEO
Acquisition talks are proceeding smoothly. Then the subject of price comes up. The buyer thinks the seller’s asking price is based on overly optimistic financial projections. The seller believes the buyer’s valuation of his company is far too low. Is the deal dead? Not necessarily.
An earnout agreement can help resolve the dispute when a buyer and seller disagree about the seller’s business prospects. They are especially useful when dealing with the unknown — when the target is young and unproven, or it is emerging from a difficult financial situation. In short, earnouts offer a way for the parties to bridge expectation gaps.
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6 Keys to Writing Great Investment Teasers
In this series we will share our research and high-level best practices on how to prepare the critical written materials required to sell / finance a private company. This post, tackles the investment teaser and provides guidance for industry executives, business owners and M&A professionals on how to write highly effective teasers.
An investment teaser is a professional document used to introduce an investment or acquisition opportunity to financial or strategic buyers.
From our research at Axial, we’ve discovered that active strategic buyers typically review more than 250 acquisition opportunities each year and buy approximately 1-2% of them. Most private equity firms, because they have a broader and more flexible acquisition criteria than strategic buyers, often review over 500 businesses a year and will often only make investments in up to 5 of those companies. For business owners and CEOs of private companies who are looking to successfully sell their business or raise growth capital financing, these odds place tremendous emphasis on the quality of the offering materials that you’ll prepare for prospective buyers to review.
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The 6 biggest buyout funds of 2018 (so far)
After a boom year for private equity fundraising in 2017, firms are staying busy. With the close of the 2Q, six different PE investors this year have closed buyout funds with at least $3 billion in capital commitments, according to the PitchBook Platform.
Perhaps the most notable trend among them is their global nature. With locations ranging from Sweden to Hong Kong, it's clear that a firm doesn't need to be based in a traditional private equity hub to raise a huge pool of capital.
Here's a rundown of the mega-funds leading the way:
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Apparel Manufacturing Company| $1,100,000, | Artesia, CA
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VR Located in Hampstead, NC is assisting in the sale of a Car Wash and Oil Change Business
This independent quick lube and car wash is located on a busy main road. It has been in operation for over 20 years. This is a non-franchised location so there is flexibility to make any changes a new owner desires. The four bay shop is equipped with two lifts to accommodate both small and larger vehicles. In addition to oil changes, they also offer state inspections as well as minor repairs.
The car wash includes one automatic touch – free wash and five self service bays. There are 4 auto vacuums, 2 bill changers, a mat cleaner, and a water reclaim system included in the sale. The facilities are very clean and well maintained. Minimal competition in the area make this an excellent opportunity for an owner/operator to live in one of the most desirable areas of North Carolina while owning a great business with unlimited growth potential.
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Citizenship Requirements for Business Acquisitions
“May Qualify for Visa” is a label occasionally utilized for businesses actively listed for sale. The intent of this label is to attract foreign buyers that seek conditional authorization granted by the United States through the issuance of a visa, which allows the buyer to enter, leave and/or remain within the US for a specified period of time. The following information helps navigate what a potential buyer or seller may or may not be able to do.
SBA financing is available to businesses that are a majority owned (51%) by US citizens and/or Lawful Permanent Residents (LPR). LPR is provided to people who may live and work in the US for life unless their status is revoked. The US Citizenship and Immigration Services (USCIS) Form I-551, LPR card, commonly referred to as the “Green Card,” is evidence of LPR Status.
Since 1997, USCIS has issued the I-551 or LPR Card with a 10-year validity, at which time it expires and must be renewed. The expiration of the I-551 does not affect the LPR status of the immigrant. However, an expired I-551 does not make your buyer ineligible for SBA financing.
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Congratulations VR in Waukesha, WI for Facilitating the Sale of a Manufacturing Company
This growing niche plastic molder was in business for well over 40 years producing an array of products for business and consumers. With contracts in place for the larger accounts and a great customer distribution, this business was very well diversified and stable. There is plenty of additional room for growth in each of the two divisions through addition of new customers or products or by way of marketing and selling directly to end users. Included in this sale was over 9 acres of land with facilities totally over 74,000 square feet.
We congratulateLarry Heckon this successful transaction!
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Thinking of selling your business or looking for an established
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Have you ever considered selling businesses?
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