Warm Thanksgiving Day Wishes – VR Business Brokers Global Headquarters

Happy Thanksgiving from

VR Corporate Headquarters

While the Thanksgiving holiday is an occasion for feasting, one must not forget the reason underlying the celebration. Thanksgiving Day is a day for family reunions and thanking God for his infinite blessings and bountiful harvest.

Thanksgiving Day is a significant festival of the United States of America. Luxurious traditional meals, colorful parades, friends and family, holidaying and exciting sport games are the most common customs observed on this auspicious harvest festival.

From the entire VR Corporate staff, we wish you and yours continued hope, happiness, and health during this Thanksgiving holiday season.

“Small cheer and great welcome makes a merry feast!”

  ~ William Shakespeare
Warm Regards,

Peter King; CEO & JoAnn Lombardi; President

VR Business Brokers
Global Headquarters
One East Broward Blvd.  Suite 1500
Ft. Lauderdale, FL 33301
954-565-1555
www.vrbb.com

Buying A Business – Putting Together an Effective Business Plan

Thinking Ahead of the Game by Putting Together an Effective Business Plan

When you are going to buy a business, it’s important that you understand how a business plan works.

There are many people that before they bought a business had never created a business plan.

At VR Business Brokers, we will educate you on formulating an effective plan when you come in for a consultation.

When discussing one of the business opportunities that we have available, you will discover that many already have an existing plan in place. This will give you a solid foundation to work from, where you can either continue to follow, revise or change completely.

Usually, the only time that most small to mid-sized business owners write up a business plan is when they are looking to obtain financing. Most lenders will want to review a business plan before they consider approval for a loan.

Every VR business intermediary will advise how critical having a business plan is in order to be a successful owner when the purchase is complete. Some brokers argue that you can be successful without a written plan in place. However, in most cases, this is where business owners can fail miserably.

When you are looking into buying a business, you need to prepare not only for how you are going to continue running the operation. You must look at how you are going grow your business.

For example, you need to know how much working capital will be required to keep the electricity on, employees working and marketing to new customers.

Financing Your Purchase and Expansion Plans

VR will help you look at several options on how to finance growth for the business that you are buying as you put together a plan.

Since expanding the business is in your best interest, the major risk to overcome here is the short-term cash flow problem – how it can be managed and controlled to avoid risk.

In order to discover how much additional cash will be needed to finance growth for the business that you are buying, you will need to draw some projections.

VR will assist you in determining:

  • What is going to be the timing of the cash flow;
  • How much money is going in, out and when will it be;

We will have you consider numerous factors to have the best plan in place.
You will look at different variables, so you can create several sets of projections.
You will need to examine whether you should seek outside financing, if seller financing is being offered, look at venture capital as well as other options.

Examining Your Financial Options

Most people don’t realize it but bank financing is only one option for assisting in buying and growing an existing business. There are many other options that are available, and you will want to keep your current cash and bank credit lines available for other business needs.

Some of the options available for financing the buying and expansion of a business include:

  • Utilizing a credit line;
  • Venture capital;
  • Liquidating investments and assets;

Speak to a VR business intermediary today about buying a business in your local area, and the financing that’s available.

VR can also offer financial options in purchasing a VR Business Franchise. Contact VR headquarters for more information at (800) 377-8722

 

More Business Sales Transactions by VR Business Brokers

NEW BUSINESS TRANSACTIONS!

VR Continues to Match Qualified Buyers with Businesses for Sale

In today’s business climate, our clients demand quality and professionalism. We applaud our VR network for the recent successful transactions:High-Volume Ice Cream Franchise, $438,000Pasadena, CA

Landscaping Business, $280,000Asheville, NC

Landscaping Company, $185,000Dallas/Legacy Park, TX

Upscale Salon & Spa, $175,000 Coral Gables, FL

Beer & Wine Market, $55,000Artesia, CA

To learn how you can become a successful owner of a business, contact a VR office today!

 

 

SUCCESSFUL TRANSACTIONS

CNC Machine Company

VR Business Sales of New Haven, Connecticut, a leader in the sale of privately-held companies, recently facilitated the strategic sale of a cnc machine company for $1.07 million.

The transaction, which closed last month, was handled by William Hall, a business intermediary specialist.

SUCCESSFUL TRANSACTIONS

Web-Based Liquidation Company

VR Mergers & Acquisitions, located in Atlanta, Georgia, the leading business intermediary firm in the area, has recently facilitated the strategic sale of a web-based liquidation company for $350,000.

Gary Martin, a VR business intermediary, represented the seller throughout the transaction that was completed this month.

NEW ENGAGEMENTS

Casual Furniture & Accessories Company

VR Mergers & Acquisitions, located in Charlotte, North Carolina, announced it has been engaged by an owner of a casual furniture & accessories company to assist in facilitating the sale of their businesses.

This company is a multi-location furniture retailer. They offer a well-branded concept with over 25 years in business, offering unique products for the home. They have direct pricing with their vendors and well-established locations in strong markets. Go to their VR Web Site for further details.

NEW ENGAGEMENTS

Child Care Center

VR Business Brokers, located in Lakeland, Florida, the leading business intermediary firm in the area, has recently been engaged to assist in facilitating the strategic sale of a child care center.

This long-established learning center has been a landmark for the area. The sale includes the location’s real estate, which consists of two buildings on double and single lots. Click here for more details.

For information on owning your own VR Business Sales Franchise contact VR Franchise Information Request

or call (800) 377-8722

See more updates on the VR Business Franchise Opportunity Facebook page

 

 

The 2011 VR Business Brokers Sales Conference – Fort Lauderdale, FL

VR Business Brokers owners and associates from around the globe gathered for the 2011 VR Business Brokers Sales Conference in Fort Lauderdale, Florida this past month.

Held at the Renaissance Fort Lauderdale Cruise Port Hotel, owners and associates were exposed to a full three days of wonderful speakers, enlightening presentations, important key takeaways and magnificent company. It is safe to say that the event was more than a triumph, but an exciting indicator for the success all the VR offices will have for 2012.

The 2011 VR Conference kicked right off with a festive welcome reception at the VR Global Headquarters, located in the busy financial district of Downtown Fort Lauderdale, Florida on the evening of Thursday, October 13th. Both domestic and international VR franchisees and associates arrived to meet with VR C.E.O. Peter King, President JoAnn Lombardi and the VR Corporate staff. One didn’t have to realize the significance of the occasion when you had VR owners such as Stephen and Leslie Fitzgerald of the Savannah, Georgia office in the company’s reception area with Burak Kutal of the Istanbul, Turkey office, and Jose Maria Varas Garcia of the master franchise in Spain. It was amazing to see previous VR MVI recipients Scot Cockroft, Steve Fischer, and Jay Offerdahl pose in front of the respective trophy as drinks and tapas were served throughout the three-hour extravaganza.

The introduction of the VR Email Marketing Campaign is a clear indicator of the direction VR is headed; designed to generate new leads for those looking to buy a business or sell their business. VR President, JoAnn Lombardi, worked to fine-tune each email campaign message to reach its fullest impact. The six-month campaign, starting this January is designed to increase sales, where franchisees and associates can determine the scope of the area that they are interested in focusing their marketing efforts.

The conference proceeded with a discussion on the branded and strategic efforts surrounding the VR Note Buyers Program, specializing in the funding of business-backed and franchise-backed promissory notes.

Following was a discussion and presentation on E2 and EB5 Visas for potential business owners. Many questions arose about the possibilities of further cross-border M&A transactions. Both domestic and international VR franchisees and associates were enthused to learn the full-range of business immigration assistance services.

The current state of private equity in today’s markets was also mentioned, and explained how dealings with business intermediaries, accountants, lenders and attorneys are used to find good investment prospects.

The third and final day of the VR Conference, October 15th, began with the announcement of the VR Social Media Marketing Campaign. Using the majority of the morning to roll out the plan, dialogues erupted on how every VR office can utilize social media outlets such as Facebook, Twitter, LinkedIn and YouTube. Every office can build and expand their operations. The two-hour presentation showed how to do this through posting announcements on the latest and current engagements, transactions, informative posts on buying and selling a business. VR has changed the way businesses change hands. Social media is changing the way that businesses interact with their clientele; and VR is directly embracing this new medium.

The afternoon continued while VR owners and associates intensely listened to an illuminating presentation, which detailed a wide range of assistance offered to clients in helping to secure financial goals using retirement funds to acquire a business. The #1 lender to small businesses in the U.S. offered advice and answered many questions on assisting prospective business buyers find the most necessary lending available.

VR Corporate presented the highly anticipated and proprietary VR 3-Month Associate Training Program and VR Master Business Intermediary (MBI) Online Program. The VR MBI program is the most extensive for training in the world for full-time professional intermediaries. As each VR franchisee and associate knows, good training is the foundation of any successful business. Both programs deliver on the ability for every office to build a strong inventory and complete business sales.

The VR Conference delivered on showcasing a strong marketing plan for every VR office to follow to have a prosperous 2012 that sets us apart from the entire industry. The anticipation is high that what has been introduced and provided will set fortunes into motion by the time the next VR Conference arrives.

To see more photos from the conference please visit our Facebook page at http://www.facebook.com/vrfranchise

 

 

Videos of VR Business Brokers Franchise on YouTube

Watch videos about the VR Business Franchise Opportunity which explain the benefits, resources and tools available to all our VR Franchise Owners.

VR Business Brokers Youtube Videos cover many of the benefits the VR Franchise offers to our VR Business Brokers

 Contact us to find you more about the VR Franchise at 800-377-8722

Business Valuation Article – VR Business Brokers

Setting the Record Straight on Business Valuation

Many people can become incredibly confused about understanding what business valuation means. Many misnomers exist regarding the subject, which can be a complex financial discipline that consists of unintelligible jargon, reason and underlying mathematics to any outsider who may be looking to buy or sell.

Therefore, let’s reveal the truth behind a few myths of business valuation.

1.) Net income and net free cash flow are identical

First of all, there is nothing remotely similar to these two concepts. Net income includes a deduction for depreciation expense that many small businesses base on accelerated tax schedules. In addition, net income excludes debt service, financing proceeds, owner distributions, capital expenditures and changes in working capital.

Net free cash flow is more inclusive and relevant to value because it represents the amount of cash available to investors (equity and debt holders) in excess of the current operating needs of a business – the essence of value.

Therefore, a novice who substitutes net income for net free cash flow risks overvaluing the business because the former may disregard a company’s imminent need to update such things as equipment and the shareholder’s reluctance to reinvest in future operations. Net free cash flow takes into account capital expenditures and working capital requirements.

2.) Unprofitable companies have no value

Remember that fledgling businesses will possess value because they have potential to generate future cash flow, hard assets and internally generated intangibles such as patents, customer lists and proprietary software. Just because historically there may have not been profits in the past doesn’t mean there’s no value in a company that you may be looking to buy. For instance, startups and high-tech ventures my incur losses until they are up and running.

3.) If a competitor sold for 1.5 times revenues two years ago, a comparable business could do the same for a similar price-to-revenues multiple today

Nothing could be further from the truth in this instance. You may think comparable transactions provide objective, convenient evidence; but one, single transaction doesn’t provide a representative sample.

Remember that each transaction is unique. For example, a competitor’s sale might include buyer-specific collaboration like an earn-out or a seller’s employment contract. Ask yourself if the informant is reliable. Like an old wives tale, transaction details can become exaggerated and evolve over time as the story passes from one individual to another.

4.) Business value only matters when considering buying or selling

The granddaddy of all valuation myths, every business can benefit from studying the subject regularly, not once in a full moon.

Most owners have no clue what their business is worth from just an operational perspective. Therefore, having an informal valuation can teach management what drives value and show how to increase cash flow for both the short and long terms.

A valuation can shed light on economic conditions and industry trends that can help you improve operating efficiency and increase sales inevitably. It can be an integral part of contingency planning that can help management assess the adequacy of commercial and key person life insurance coverage as well as serve as an underpinning of effective buy-sell agreements, succession plans and individual wealth management planning.

— Peter King; CEO, VR Business Brokers

 For assistance with Business Valuation please contact VR Business Brokers at 1-800-377-8722