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VR Business Brokers, VR Mergers & Acquisitions, Buyer Alert Program,

VR Franchise Opportunity, VR Office Location

By Peter C. King, CEO VR Business Brokers/Mergers & Acquisitions

There is no situation where the buyer doesn’t question if they are making the right decision in buying a business. The truth is every business has its share of both advantages and disadvantages. Regardless of, if the seller had disclosed everything to you is why you perform due diligence.

You want to examine a business to find out what are the problems of the business as well as what is driving its value. You also need to discover what the seller has done over the last few years to dress-up the business in order to maximize earnings:

• Frozen expenditures on capital equipment.

• Cut back on marketing research;

• Withheld introduction of new products.

Due Diligence from the Correct Perspective

How you as a buyer will perform due diligence on a business depends on what kind of buyer you are.

Investment and Venture Capital Groups

If you’re a financial buyer such as from a private equity group, the challenge of performing due diligence might be whether they understand the industry or whether they can sufficiently be educated in a short period of time.

For example, say you are presented with an acquisition opportunity in which the industry and the particular company’s problems were not addressed. The challenge in this case would be to uncover these short comings. You may require the need to retain an industry expert to guide you through the process of due diligence for the business.

As an Industry Buyer

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By JoAnn Lombardi, President VR Business Brokers/Mergers & Acquisitions

Normally, a business owner who’s looking to sell has to keep their intentions close to the chest. You don’t want to upset your employees, your customers or the vendors; any of which could cause a major disruption in your operation and be a detractor to potential buyers. Since selling your business can be both an emotional and overwhelming process, it’s important to consult VR Business Sales. We will facilitate the process to where you will be able to continue operating the business as normal while we look for a qualified buyer. A qualified buyer will want to see a thriving and well-operated business if they are put down a substantial financial investment.

Each VR business intermediary is equipped with the tools and experience to ensure that you don’t make any pivotal mistakes. Below are some areas that we will help you stay on the track with to get you to completion of the deal.

Pricing the Business at the Fair Market Value

Although many sellers would like to see their business’ worth based on the time, effort and finances they have spent, you don’t want to go in and place a high price on a business. When you make that decision to sell, you have to be able to understand what buyers are looking for so that you can come to win/win arrangement. If the price you’re looking for is higher than what the fair market value is, chances are you will have a difficult time finding a buyer who’s willing to write a check.

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M&A in Physician Practice Management: An Alternative to Hanging Up the White Coat

By Align, Business Advisory Services

Introduction

Since 2017, over 4,500 healthcare service companies have been acquired. Both strategic acquirers and private equity groups are heavily investing in Physician Practice Management (PPM) companies as they are recession resistant, have consistent cash flows, and are uniquely scalable. Everyone needs to see the doctor when they are sick, whether the economy is thriving or in a downturn. A majority of physician practices bill Fee-For-Service (“FFS”) with a reimbursement timeframe between 30-60 days after submitting claims to insurers. This cash flow cycle is consistent and predictable, which is attractive to investors. Also, physician groups are quite scalable by implementing a single electronic medical record / billing system over many different practices with different specialties or having the ability to gain leverage over insurance companies with ever increasing scale and reportable outcome data. A large physician group can typically enroll smaller groups into their managed care agreements, adding 10-20% in allowable in short order. If a group was to change from FFS contracts to an at-risk capitated structure, revenues can increase materially over FFS. Due to these factors and many more, investors are aggressively investing in the PPM space at high valuations.

Private equity is estimated to have approximately $1.5 billion of capital available for U.S. acquisitions and they have mandates to put this money to work. Additionally, with the increased cost of debt in today’s market, the volume of larger ($250M+) transactions being completed is in decline. This is causing larger investors to come down stream to acquire a larger number of smaller businesses. Most PPM businesses fall into the sub $100M size category, which is seeing increased investment volume.

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Light Manufacturing in the Carolinas

Don’t miss this opportunity to own a very profitable light manufacturing company based in the Carolinas. This well-established direct to consumer manufacturer has above average margins, a consistent backlog of orders and is positioned for growth with excess capacity. 2023 SDE is ahead of last year thru June 2023. This business is set up for a new owner to take over and continue to grow the business.

For more information contact: Adam Petricoff

Thinking of selling your business or looking for an established 

business to purchase? Contact a VR Office Near You!

VR Office in New Haven, CT Sold an established Multi Store Clothing & Accessories for $1,300,000

This consignment business merchandises top name brand clothing and accessories through four stores in Connecticut. It is the most successful of its kind of business in Southern New England. Revenues continue to grow as consumers become more receptive to purchasing re-used goods and search for bargains in an inflationary environment.

Congratulations to Jeff Swiggett for your successful closing.

Meeting the Sky-High Challenge of Decarbonizing in the 21st Century

by John Sestan, A commercial specialist with over 30 years of experience in Mining and Resources M&A across most continents, jurisdictions.

The electrification of the transportation sector is emerging as a key priority in the fight against climate change, driven by the demand for improved air quality and less carbon intensive economic development. The Paris Accord laid the foundation for inter-national co-operation, and it is expected that the Glasgow UN Climate Change Conference later this year will build further on building consensus in support of this change.

The need for green mining investments

The migration away from Internal Combustion Engines (ICEs) to Electric Vehicles (EV) and, potentially, hydrogen fuel cells, represents a major industrial evolution that is critical to the success of these climate initiatives.

Major corporates including most multinational car manufacturing companies have embraced this disruption and are seizing on opportunities for exposure to these high growth market segment. Recent announcements by the EU sets out accelerated targets in the rate of reduction in ICE cars on European roads by 2030, including a complete ban in the sale of gas and diesel cars by 2035. To power this migration and to build enabling infrastructure will require a major industrial transformation.

Energy sources will pivot from carbon-based fossil fuels to a mix of nuclear base load capacity and renewable energy sources supported by battery capacity. 

This transition will demand large quantities of raw material resources to provide the electrification infrastructure, exponential fuel cell production and green hydrogen manufacture. Companies such as Tesla, Volkswagen, Renault and even Ford and General Motors have all expressed concerns as to whether the resources industry will be capable of meeting the challenge to supply the industry with raw materials in the required quantities.

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VR is the Only Remaining Founding Firm of The International Business Brokers Association (“IBBA”).