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

VR Franchise Opportunity, VR Office Location

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

Let VR Professionals Guide Your M&A Deal

A knowledgeable and experienced M&A deal team can help facilitate and streamline the business sale process-from due diligence to negotiations to the execution of agreements and other post deal transactions. Whether you’re buying or selling a company, consider the following to help ensure your team will be a winning one. 

Choose Members Wisely

Some of the most important decisions you’ll make in the process concern selecting professionals to help with your M&A. A deal team may consist of financial and legal experts, or you may need to expand the team to include – depending on the size and scope of the deal and your industry-specialists from fields such as government and environmental regulation, human resources, risk management, information technology, and operations. Often, a business broker or intermediary will lead the team, helping to organize and package information from all certifiable sources and further negotiate the deal.

Your current legal and accounting advisors may be able to serve on your deal team and recommend M&A experts to work with you. When evaluating potential advisors, consider such factors as their:

• Experience with transactions similar to yours in terms of size and industry, 
• Success rate with previous clients, 
• Number of engagements handled per year, and 
• Professional affiliations.

Also investigate potential complaints of inappropriate or unprofessional behavior, which can be ascertained by contacting relevant regulatory agencies. And be sure these are individuals you can talk with honestly and who, in turn, take your concerns seriously. Once you’ve assembled your team, open communication and efficient information sharing will be essential to its success.

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

Increasing globalization means that more business sellers are looking overseas for buyers. Many foreign buyers, in turn, are eager for U.S. acquisition opportunities. The dollar’s stability over the past few years means cross-border deals can be a safe haven for them. 

These types of deals can be complex, opening the door for miscommunication. Anticipating challenges, however, can help smooth the way. 

Appoint Cultural Ambassadors

Prospective foreign buyers may not only be unfamiliar with the ins and outs of your

business, but also U.S. cultural customs, government regulations and labor relations. You

can position your company as a more attractive acquisition candidate and smooth the

process by appointing an “ambassador” to a prospective buyer.

Charge this task force with explaining your country’s traditions, work practices and

regulations. Organize a series of meetings in which managers from both companies can

meet and discuss such topics as work hierarchies, distribution of power and responsibilities, and even office layouts. Informal meetings will help unearth any potential stumbling blocks long before the two organizations formally integrate.

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9 Clauses to Include in Every NDA

By Kaitlinn Thatcher, Axial

Non-disclosure agreements (NDAs) are the first step for almost every deal — but their importance can easily be overlooked. In most transactions, the disclosing party is the business seeking capital or investment, and the receiving party is the investor.

Proper management of the NDA can provide both sides with an early indicator of what the entire negotiation process will be like. Neglecting the NDA’s importance could lead to legal complications later on.

Today’s article covers nine clauses that should be included in every NDA. See the end of this feature for the NDA offerings for Axial members.

1 – Definition of Confidential Information

The definition of confidential information may vary based on the specific transaction. It’s critical for every NDA to clearly define the materials that should (and should not) be considered confidential. Materials may include conversations, written notes, analysis, and documents produced with the use of the confidential information. Special mention should be made for any materials that are considered to include trade secrets.

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A Distributor and Service Provider with Large Market in US and Overseas located in North Carolina

An established and profitable distribution and service business in North Carolina is available for ownership. The business has strong relationships with clients and vendors, an experienced team, and is poised for continued growth under new ownership.

The business offers growth opportunities in several areas, has efficient processes in place, a skilled and experienced staff, a consistent and growing customer base, and operates out of a facility that can accommodate future growth.

While prior experience in the aerospace service industry is welcome, the seller is focused on finding the right buyer to take this business to the next level as retirement awaits the owner.

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 Lewisburg, PA Sold a Commercial Hot Tub Manufacturer Company

The company has built a strong reputation over six decades as a leader in the hot tub and swim spa industry. Being a privately held manufacturer, they are dedicated to producing high-quality products and providing excellent customer support. Each unit is designed, developed, and crafted with meticulous attention to detail. The company’s longstanding commitment to quality and craftsmanship is reflected in their impressive 35-year warranty, giving buyers peace of mind in their investment.

Congratulations to Robert J. McCormack for your successful closing.

How Can European GDPR Rules Effect US-European Business Activities

by Gundo Kahle, CEO CBA Cross Borders Associates

The European General Data Protection Regulation (GDPR) significantly impacts US-European business activities due to its stringent data privacy and protection requirements. These rules apply not only to companies within the European Union but also to any organization that processes the personal data of EU citizens, regardless of where the company is based. Consequently, US businesses dealing with European customers must comply with GDPR standards, leading to several important effects.

Firstly, US companies need to implement comprehensive data protection measures. This includes appointing a Data Protection Officer (DPO), conducting regular data protection impact assessments, and ensuring data processing agreements are in place with third-party vendors. These measures can be resource-intensive, requiring both time and financial investment to align with GDPR’s strict protocols.

Secondly, GDPR mandates transparency in data handling practices. US businesses must provide clear and accessible information on how they collect, use, and store personal data. This requirement fosters greater accountability but also necessitates changes in communication strategies, customer interfaces, and privacy policies to meet these transparency standards.

Thirdly, GDPR grants individuals extensive rights over their data, including the right to access, rectify, erase, and port their data. US companies must establish mechanisms to facilitate these rights, which can involve significant adjustments to their data management systems. Ensuring compliance with these rights can be particularly challenging for businesses with complex data structures.

Additionally, GDPR’s reach extends to data breaches, imposing strict notification requirements. US companies must report certain types of data breaches to EU authorities within 72 hours of becoming aware of them. This necessitates robust incident detection and response systems, and failure to comply can result in substantial fines.

The extraterritorial scope of GDPR also creates jurisdictional challenges. US businesses might find themselves subject to legal proceedings in European courts if they are found in violation of GDPR. This aspect underscores the importance of cross-border legal expertise and the need for companies to stay updated with evolving European data protection laws.

Moreover, non-compliance with GDPR can lead to severe financial penalties, up to 4% of a company’s global annual revenue or €20 million, whichever is higher. These penalties serve as a strong incentive for US businesses to prioritize GDPR compliance to avoid potentially crippling fines.

In conclusion, GDPR imposes rigorous data protection standards that affect US-European business activities by requiring significant changes to data management practices, increasing transparency, ensuring individuals’ data rights, necessitating rapid response to data breaches, and exposing companies to substantial fines for non-compliance. These requirements compel US businesses to invest in compliance efforts, impacting their operations, legal strategies, and overall approach to handling personal data from European customers.

For your customers who want to run businesses in the European Union, or are involved in sales, marketing, advertising, etc., it is important to know the GDPR rules, and you can score points if you can familiarize them with the GDPR regulations.

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