Unlocking The Value in Your Business
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You can increase the value of your business without increasing profits!
VR Has Sold More Businesses In The World Than Anyone.®
Plan Ahead
Smart business owners know that eventually their business will either transfer or close. There is no alternative. Your company is a product. It will be treated as a prize to be won or as a piece of distressed merchandise to be acquired at a bargain basement price. How a business is treated can often be traced back to the timeliness and appropriateness of the owner’s decision to sell.
Position Your Company to Sell
A good definition of positioning is, “It’s not what you see that counts, but how you see it”. Buyers are looking for opportunity. Often this means stepping in to correct issues so that future profits can be gained. It is just as important to know the weaknesses in your business as to know its strengths. Remember that transparency is critical in a business sale.
Set Realistic Price and Terms
This doesn’t mean you should accept less for your company than it is worth. It does mean we need to confidently and rationally defend the price and terms that are set. Lose the confidence of the buyer and your sale price will suffer, or in some cases lose the sale completely.
Preparation of Financial Records
Comprehensive professionally prepared financial records are paramount to attracting buyers willing to pay a premium for your business. Well maintained records present you as a savvy owner and your business operated professionally. Solid financial records greatly reduce the buyer’s perception of risk.
Obtain a Professional Valuation
One of the most valuable tools at your disposal is a credible professional business valuation that supports the asking price. Buyers are less likely to present a low offer for a business when documented evidence can be provided that supports the price. Most non-owner sources of financing insist on a business valuation from a independent third-party before funding.
Take Stock of Your Business
You must step back and take a long objective look at your business. Without objectivity, your business cannot be packaged to attract the most advantageous buyer and command the highest price.
Identify the Correct Buyer
If your company could benefit from strong marketing, then we will include in your potential buyer profile significant strength in that area. If your company lacks customer service, then someone with special skills in that area would be a good candidate. Keep in mind, not all buyers will pay the same amount for your business. Your best offer will come from a buyer with skills and strengths that are well matched to benefit the most from your company.
Refine Your Organization
Take steps to ensure that your business does not depend upon you for its survival and success. The highest quality buyers are seeking a well-run company to manage and are reluctant to buy a business that is completely dependent on the owner for all aspects of operations.
Review Your Lease
Lease issues and landlords can represent the biggest “deal killers”. The lease provides the buyer with security of operating from the same location without interruption to relocate. It should provide for assignment and should be valid for a minimum of three years. If not, it could be time to renegotiate prior to starting the sales process of the business.
VR Business Profile / Confidential Information Memorandum ("CIM")
To attract sophisticated buyers we must provide information beyond the financial statements. Buying a business isn’t just a simple mathematical exercise involving the “numbers”. Buyers want customer concentrations, industry outlook, marketplace forecast, future influences from technology, industry margin comparisons, operating ratio analysis, stability of tenancy, and much more. A VR Business Profile / Offering Memorandum that includes this type of information will greatly enhance the business prospects of selling.
Plan Ahead
Smart business owners know that eventually their business will either transfer or close. There is no alternative. Your company is a product. It will be treated as a prize to be won or as a piece of distressed merchandise to be acquired at a bargain basement price. How a business is treated can often be traced back to the timeliness and appropriateness of the owner’s decision to sell.
Take Stock of Your Business
You must step back and take a long objective look at your business. Without objectivity, your business cannot be packaged to attract the most advantageous buyer and command the highest price.
Position Your Company to Sell
A good definition of positioning is, “It’s not what you see that counts, but how you see it”. Buyers are looking for opportunity. Often this means stepping in to correct issues so that future profits can be gained. It is just as important to know the weaknesses in your business as to know its strengths. Remember that transparency is critical in a business sale.
Identify the Correct Buyer
If your company could benefit from strong marketing, then we will include in your potential buyer profile significant strength in that area. If your company lacks customer service, then someone with special skills in that area would be a good candidate. Keep in mind, not all buyers will pay the same amount for your business. Your best offer will come from a buyer with skills and strengths that are well matched to benefit the most from your company.
Set Realistic Price and Terms
This doesn’t mean you should accept less for your company than it is worth. It does mean we need to confidently and rationally defend the price and terms that are set. Lose the confidence of the buyer and your sale price will suffer, or in some cases lose the sale completely.
Refine Your Organization
Take steps to ensure that your business does not depend upon you for its survival and success. The highest quality buyers are seeking a well-run company to manage and are reluctant to buy a business that is completely dependent on the owner for all aspects of operations.
Preparation of Financial Records
Comprehensive professionally prepared financial records are paramount to attracting buyers willing to pay a premium for your business. Well maintained records present you as a savvy owner and your business operated professionally. Solid financial records greatly reduce the buyer’s perception of risk.
Review Your Lease
Lease issues and landlords can represent the biggest “deal killers”. The lease provides the buyer with security of operating from the same location without interruption to relocate. It should provide for assignment and should be valid for a minimum of three years. If not, it could be time to renegotiate prior to starting the sales process of the business.
Obtain a Professional Valuation
One of the most valuable tools at your disposal is a credible professional business valuation that supports the asking price. Buyers are less likely to present a low offer for a business when documented evidence can be provided that supports the price. Most non-owner sources of financing insist on a business valuation from a independent third-party before funding.
VR Business Profile / Offering Memorandum
To attract sophisticated buyers we must provide information beyond the financial statements. Buying a business isn’t just a simple mathematical exercise involving the “numbers”. Buyers want customer concentrations, industry outlook, marketplace forecast, future influences from technology, industry margin comparisons, operating ratio analysis, stability of tenancy, and much more. A VR Business Profile / Offering Memorandum that includes this type of information will greatly enhance the business prospects of selling.
Valued Representation
Have You Ever Considered Helping Others Sell Their Business?
Controlling one’s own destiny is the foundation of being an entrepreneur and then the day comes and it’s time to exit and you need assistance. Helping those moving on to the next phase in their professional life is the role of VR franchisees.
If you would like more information on the opportunity of a professional career change, and joining VR, take the first step and fill in the form below so we can set up a time to answer your questions or eliminate a step and set your own appointment.
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Today's Business Owner®
Today’s Business Owner® (TBO) is VR’s Monthly Electronic Magazine that publishes relevant business articles and completed transactions to establish you as an industry expert.
