Working with a professional firm like VR greatly enhances the probability of finding the right business for you and realizing a successful business purchase. The closer you examine the process of buying a business, the more apparent it becomes that VR Business Brokers should be your only choice. The underlying reason is simple, every VR Intermediary provides their client with exactly the same level of service and professional resources that a large institutional client would expect from one of the leading investment banks.
What you should consider:
Buying an established business can be one of the best decisions you'll ever make. But it can also be one of your worst. When evaluating a business opportunity, there is much more to consider than price and profits alone. You should ask yourself if you have the skills to manage the company in question. Without such self-analysis, the risk of failure will be significantly enhanced.
An educated buyer will objectively analyze his or her own management skills, and recognizes the value of professional help. An acquisition is a sophisticated transaction that requires the help of a highly trained specialist such as a VR intermediary. Our VR Business Brokers office located in Saginaw, MI has the experience and expertise to guide you through this acquisition process. We will use our expertise to help you find, analyze and negotiate your business acquisition. With a clear understanding of your experience and financial ability, we can identify opportunities that will meet your specific criteria and maximize the skills you bring to these businesses.
Finding a business where you will feel comfortable managing may take some time and effort. Some buyers wait as long as six months or more for the right opportunity to come along. A broker who suggests otherwise may not have your best interests in mind. The bottom line is you need to be patient and let the VR Business Broker find the right business for you. In addition to being patient, you must also be prepared to walk away when what appears to be a good deal turns bad. As sad as it may sound, there are more questionable opportunities in the marketplace than there are good ones.
After you identify a business opportunity:
One of the first steps after identifying a possible acquisition target is to determine the valuation of the particular business. The valuation of the business will help establish a sale price on which both the seller and the buyer can agree. Past financials including but not limited to profit and loss statements, balance sheets and tax returns are valuable in this process. Another important aspect of this valuation is determining cash flow and identifying assumptions that are sound and logical for evaluating this business in today's market. When this buyer evaluation is complete the next step is a visit with the seller and a tour of the business.
If all goes well after meeting the business owner and touring the business, the next step is making an offer for the business. Making an offer is not a final step. In fact, it should be viewed as the first of several steps, each of which bring the buyer and seller closer to completing the transaction. The buyer is obligated to make an offer before seeing the business' detailed internal financial records. The buyer must understand that their offer is always contingent upon the Seller proving his or her representations. Due diligence - a specified period of time during which the buyer investigates the business fully -- is costly and time-consuming, and it must be done only after an agreement on price and terms is reached.
It's the seller's responsibility to prove everything to the buyer. Your agreement on price and terms will be "non-binding" until you've had the opportunity to see all financial records and we have removed all contingencies.