Business owners come to me to sell their businesses. I’m a VR Business Broker serving the North Carolina Triangle Market so owners observe the exits I help other owners achieve and ask me about how to achieve their own.
Some of these owners I can help; they have a transferable business producing significant cash flow. Others I can’t. They may have had a great business, but now they are trending downwards. Unfortunately for many of these owners, they may have more of a problem than Read More>>
Are you a motel owner who’s planning to sell your business soon and capitalize on your previous efforts? Planning is of the essence; by clearly anticipating all obstacles, you’ll be able to work through them effectively.
If you’ve been running a motel for a while, you’re probably no stranger to this logic of anticipating problems and finding solutions in advance. In fact, that is probably the reason why you’re reading this article right now. Luckily, you’ Read More>>
As a business broker I answer a lot of questions about how to sell a business. One of my FAQs that I share with all business owners planning to sell is call the “Do We Use My Guy Or Yours?” While the “guy” could be a “gal,” the question is all about attorney selection. The point of that FAQ is that sellers must have legal representation when selling a business, whether it’s someone they already know or someone I’m going to recommend.
Here are s Read More>>
Learn to Think Like a Buyer
You’ve built a great business with love and care. It has grown larger than you’d ever imagined,
and generates a nice profit that has allowed you and your family to live comfortably. Now
you’re ready to sell. You assume there’s a buyer out there who w Read More>>
It takes a village to raise a child, and it takes a team to close a deal. Going at it alone can be a challenge, as business deals have multiple, opposing stakeholders on both sides. Here’s a roster of some of the major players in a business deal assuming you are the seller of a successful small business:
Your Deal Making Team:
You: You are the most important element in the deal. You have created a small business that has created cash flow and job opportunities for your employees. Read More>>
Since the beginning of the 20th century, advertising drove our
economy in the form of a pre-packaged, one-way story.
Today, it's a different story. We've gone from three channels
to 500, from no web pages to a billion web pages. The
choices that consumers have today are astronomical. There
are more than Read More>>
As any VR business intermediary will tell you, buying a
business gives you a greater chance of success than starting
one from scratch. 80% of new businesses fail in the first three
years due to factors such as poor location, low product quality,
under-capitalization and lack of management skills. Buying an
establ Read More>>
Every business owner should have an exit plan in place. If you
currently own a business, you know as every other successful
entrepreneur knows that you won’t be doing this forever. You
want the value of the business to stay high so you can attract
qualified buyers to take over ownership and expand whenever
Most business owners, who are looking to sell, make the mistake
of not preparing early enough. This can result in not receiving the
maximum dollar amount for your business transaction.
The selling process should start when you buy your business. You
should know the return that you are receiving on your i Read More>>
When you are exploring the option of selling your business, you
may want to offer seller financing in order to attract a larger
buyer pool, which, in turn, will generate a higher selling price. At
VR, we strongly recommend using this route to help sell your
business. Whether you've sold a business before or not, V Read More>>
I help sellers go to market all the time, typically after we walk through a “Broker’s Opinion of Value,” but sometimes sellers have their own price in mind.
Going With The Gut
When sellers come to me and they have a price set I like to ask them how they got to their price. Normally it’s a combination of what they invested in their business, what they need to move on, and what they “feel” is right.
When it was time to sell my business a dec Read More>>
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
Now, you’re ready to sell. You assume there’s a buyer out
there. You want someone Read More>>
The strategy is fundamental in creating significant value in your
business and leads to sustained growth and returns.
To create a successful strategy, you must ensure that it has the
• Ability to create new markets;
• Provides elements that inspire Read More>>
People want to be their own boss. By far, this is the biggest
reason people want to go into business ownership. Some may
be frustrated in their current job or position. Others may not
enjoy their current boss or employer, while others feel that
their abilities are not being used properly or efficiently.
When a seller puts their business on the market, they are usually prepared for a lot of time-wasters. Most sellers try to reserve their energy for buyer enquiries that they think are serious.
This means that, if you are one of those buyers, you need to stand out from the crowd.
Your enquiry needs to give the selle Read More>>
It may seem like just yesterday, but in reality its many years ago and you started your company. At that time the goals for you and/or your family were closely aligned with that of your business.
Time has marched on, the family has grown up, homes have been paid for, and you are once again considering what the Read More>>
When you are trying to sell a business, your main goal will be trying to attract the people that are serious about buying so that you don’t your time with people that are not.
To do this, you need to be serious about selling and there are a few things to do to make sure that you are.
Preparing Read More>>
Knowing where your company fits into the world of business is a must if you want to understand the dynamics of selling it. The rules that govern the sale of public companies like Ford, Microsoft, and General Electric are radically different from the rules that control the sale of closely held, owner operated, founder Read More>>
Building a business and maintaining it takes dedication. Understandably, the relationship between owner and company can become so close that the two are fused in some respects, which can be problematic when it comes to selling it.
To clinch a successful deal and allow a business to thrive under new ownership, it’s import Read More>>
When you’ve made the decision to sell your business ideally both the premises and your books need to be on point. If the business does not appear to be looked after, the buyer can suspect some concealment or deception.
Along with this you’ll need to be careful about your responses to any questions you are asked. Th Read More>>
Have you started to contemplate the
eventual sale of your business? Never sold a business before?
Here are five essential tips to help you
prepare the business for sale, find a buyer and achieve a deal on price and
terms that you’re happy with.1. Value the businessGet an accurate valuation of
your business from a t Read More>>
The only thing worse than no professional
support is the wrong professional support. Ask these questions to secure the
Selling a business on your
own to save money is often a false economy, but hiring the wrong business broker is arguably even worse.
If you are to avoid
appointing a broker who is unscrupu Read More>>
We often get the question from those wishing to become a business broker: Do I need to have a license? And the answer is yes and no. First, there is no such thing as a "Business Broker License". However many States and Provinces do require a real estate license to facilitate the selling of a business. Below is a lis Read More>>
From a lack
of preparation to proceeding without the help of a business broker, these are
some of the most common mistakes made by sellers.
Selling a business for a satisfactory return and within your preferred
timescale can be a challenging prospect. Attracting buyers requires
a focused approach, careful groundwork a Read More>>
Selling your business is never going to be an easy process. It’ll
take longer than you expect, and could be more complicated than you anticipate.
However, if done correctly, it can set you up financially for the
next step in your life – whether that’s retirement, another business venture or
something els Read More>>
Duane Merchant, CFP®
How to ARM Your Key Employees for Success
business owners would love to have employees who are as passionate about the
company as they are. It makes sense: The future of a closely-held or family
business depends on how securely its select employees are tied to it. But
creating Read More>>
Move over Baby Boomers. The next market business
brokers should be paying attention to is Millennials, whom are defined as being
between ages 18 to 34 in 2015.
There are many
misconceptions about this generation, but in reality, Millennials are the
future business owners of America.
The Power of the Millennial Genera Read More>>
Behar Law Group
The fifth employment based visa preference category ("EB-5"), created by Congress in 1990, is available to immigrants seeking to enter the United States in order to invest in a new commercial enterprise that will benefit the US economy and create at least 10 full-time jobs. The EB-5 Program is governed b Read More>>
VR Sacramento, CA
I recently met with a business owner who, because of health problems, wants and needs to sell his business. He has a key employee that supervises much of the work that is performed by the company. He offered to sell the business to the employee, and they agreed on a price, with the seller carrying a Read More>>
When considering selling your business, every buyer expects a business of great value as an investment. Depending upon the qualified candidate, it could be an entrepreneur with a specific set of needs that motivates them to invest in an established business or it could be a private equity group that sees t Read More>>
VR Waukesha, WI
Being responsive is of utmost importance when your business is for sale. Buyers are often reviewing multiple companies to acquire, and of course, are reviewing financials and other information in order to decide whether to pursue your business further or eliminate it from consideratio Read More>>
VR - Communications
The art of selling your business is simple yet complex, that's why it is best to consult an experienced business broker. With so many emerging technologies, it can be hard to know what to adapt to and how it can benefit your business in the long run.
Most of these worries can be eased once given th Read More>>
If you’re considering selling
your business, congratulations!
This could be a great move for you. Or, it might not.
It’s definitely a big step,
though, and one that requires thought and preparation in order to optimize the
outcome for everyone involved.
Unfortunately, many business owners go into the sale o Read More>>
Financial forecasters say that the US’ 70,000,000 Baby Boomers are all set to make waves
in the American economy. With a great number of this demographic owning
businesses and planning to retire, some predict a 'tsunami' of Baby Boomer
enterprises will hit the business sales market – though fewer are disposed t Read More>>
Prepare a Selling Memorandum when marketing a business to sell. The selling memorandum is a written summary which outlines the selling features of the business, highlighting those points which would be of interest to a prospective purchaser. The package acts very much like a brochure on the business. It pr Read More>>
All phases of business sales stress being prepared in advance, and the Buyer Interview is no exception. Preparing psychologically in advance empowers you with an inner confidence to control the situation, rather than being controlled by the circumstances.
You have successfully handled the Ad Call and closed for the Read More>>
As with any profession that involves making important decisions, selling skills are key elements to success in Business Sales. Before examining the technical side of the Business Sales industry, it is important to understand a few elements of the psychology of selling to gain an appreciation of the skills Read More>>
1. Owner's Salary
Most business owners do pay themselves some salary on the books. The key here is whether there are other members of the family included in the payroll expense, and whether or not these individuals serve a function in the business. (A buyer can only replace one salary, so be careful which salary(s) Read More>>
While writing an offer may seem like the final or ultimate step to the buyer, it is really just the first step in the process. It starts the negotiations process and sets the ground work to determine how flexible a seller might be. If a buyer, writing an offer should be relatively straight forward. The key Read More>>
Your effectiveness as a listing agent depends on your ability to make a good listing presentation to a potential seller.
Professional business intermediaries understand that the key is to determine the seller's true motivation for selling. You must discover how far along the seller is in the "thinking about it" sta Read More>>
The key to good observation and listening skills is to build a better picture of how the seller or buyer is likely to react. You want to anticipate reactions so that you can solve problems before they become an issue.
To build this picture, it is helpful to use a model to describe general personality types. Althoug Read More>>
As a professional business broker, it is important to insert yourself as the expert on how to sell or buy a business among other needs based on the potential client. Before a seller lists their business for sale there are a few things you can do to educate your client and keep them satisfied with your serv Read More>>
A professional business Intermediary develops his platform for success by prospecting for listings. Listings are the life blood of the business sales industry. They constitute the inventory we offer to the buying public. Selling this inventory is our business. Advertising this inventory is what attracts the buyers t Read More>>
Once all of the papers have been submitted to escrow for preparation, you should receive back a total amount the buyer will need to bring to closing in certified funds. This figure is based on prorating each applicable item to a certain day of closing. If you’re closing day changes or a new prorated Read More>>
An important part of the selling process deals with handling objections and addressing issues and problems raised by the prospect. Most novices make the mistake of jumping in and attacking an objection, and as a result, lose ground with their prospect.
To be effective at answering objections you must be a good prob Read More>>
Just as listening and observing skills are important, so are careful, well thought out communication skills. With important decisions such as buying or selling a business, it is critical to convey each point carefully. Equally important is that the recipient interprets a point in the way it was intended. O Read More>>
Businessowners own life-long dreams, not businesses. When the time comes to pass on that dream, care should be taken to get the best price. The followingtipscan helpbusinessowners successfullyselltheir businesses.
1. Position yourbusinessforsale.
This process should begin the day you purchase or start th Read More>>
You likely didn't go into business for yourself because you relished the idea of creating, organizing and maintaining financial documents. Financial records are part of your ongoing operations, but if you're like most business owners, you likely don't focus on them often or think about them regularly; howe Read More>>
The sale of your business is of extreme importance. Regardless of the reason you may be selling, consulting with a professional business broker presents a better opportunity. The sale of a business consists of a presentation, finding the most suitable buyers and ensuring you receive payment for what the company is a Read More>>
It can be a tricky endeavor, figuring out the best time to sell your business in a market that is constantly fluctuating. Using a VR Business Broker can help you identify important signs to look for in determining the best time to conduct business valuations and see your company sold on the market.
Sell Y Read More>>
Selling a business isn’t simple as most people would think leaving the entrepreneur with more options than they can think of. Taking the wrong approach could have a negative impact financially both for the seller and company, so knowing the advantages and disadvantages from a professional intermediar Read More>>
1. Top price at all costs
The objective is clear, just like the submarine commander who said, “Damn the torpedoes, full steam ahead.” Whether it is a public company divesting a subsidiary or a private owner, regardless if the plant is moved and the employees are dismissed, the top price is pa Read More>>
At least once a month, you should be doing an analysis of your business,and making sure that your books and records are in working order.
It's not only good to see the progression of your business, but to verify thatboth your accounts payables and receivables are in the black. If you are thinking about selling your Read More>>