What Buyers Look For In A Business Opportunity

You have built a great business with love and care. It has grown larger than you’d
ever imagined, and generates a nice profit that has allowed you and your family to live
comfortably. Now you’re ready to sell. You assume there’s a buyer out there who will
pay you a fair price and then nurture the company with the same attention you have. What’s more, selling the business is a major part of your retirement plan.

Needless to say, buyers look at businesses differently than sellers. So to achieve the
outcome you want, it’s important to think like buyers and understand how they evaluate a business.

What buyers look for

There are many types of buyers: strategic and financial, individuals, companies, and
private equity funds. Despite differences, all buyers consider how much they’ll invest
to acquire a business, the amount of risk they’ll bear and the potential return on their
investment. To evaluate an opportunity, buyers focus on three major areas:

1. Cost and terms.

What will it take to acquire the business? How much cash and how much debt?
What are the deal’s terms and conditions?

2. Continuity

Will the business continue to operate similarly after the sale? Much of the risk of
buying a company relates to continuity. For example:

_ The current owner has personal relationships with customers, distributors or vendors that the new owners may have to struggle to maintain,

_ The owner has special expertise that is undocumented and difficult to learn,

_ Key personnel aren’t committed to staying, or

_ Offshore competition looms.

Sellers armed with solid responses to these types of continuity concerns are more likely to get their desired price. Even if you don’t want to sell your business for a few years, take steps now to ensure it can run smoothly without your personal involvement.

That independence could be worth millions when you sell.

3. Growth

Are there unexploited opportunities? You may have focused your sales efforts in
one geographic region, but there may be many opportunities to take the
product national or international. A buyer that believes it can increase revenues
substantially will pay more for the business than one that believes the current
owners have already maximized opportunities.

What sellers should do?

It may seem counterintuitive, but the things you may be most proud of can work against getting the best price for your company. Not many entrepreneurs like to boast that their company could run just fine without them or that there are plenty of opportunities they’ve failed to exploit. Yet these may be the very factors buyers seek, along with lower cash requirements. Please call us for help in understanding how to best present your company for sale.

VR Franchise Showcase has partnered with Annex Brands commercial shipping

Annex Brands Offers Tested Franchise Formula to Entrepreneurs

PostalAnnexThe VR Franchise Showcase, a leader in franchise and business placement for aspiring and established business owners, has partnered with Annex Brands in growing their franchise network across North America.Based in San Diego, California, the franchisor has nearly 400 retail and commercial shipping and business service centers located across the U.S. A leader in the shipping and business services industry, Annex Brands’ locations operate as PostalAnnex+ and Handle With Care Packaging Stores.Handle With Care

If you’re looking to buy a small business of your own, a shipping franchise from Annex Brands is a tested formula that has assisted hundreds of people in fulfilling their entrepreneurial goals. Today’s busy lifestyles demand our services of freight shipping, moving services, small parcel packaging and shipping, copying and printing, plus other office services.

They save companies and consumers alike time and money and, that’s what keeps them coming back. From site selection to ongoing advertising and support, you can count on the expertise of a nationwide company behind you to help you fulfill a dream of becoming your own boss. Franchisees continuously benefit from Annex Brands’ experience, entrepreneurial company culture, extensive operation systems, award-winning marketing expertise, comprehensive training and the hands-on-support from Home Office representatives and staff.
Call 1-800-377-8722 to learn more about this opportunity!

About the VR Franchise Showcase
The VR Franchise Showcase will support you with your decision in selecting the franchise business that’s right for you. When you are making a career decision that involves investing your own money, you want the best advice that you can receive. With only one shot at making this the right decision, it’s important to have the most competent people on your team. Learn more about how the VR Franchise Showcase can fulfill your professional and financial goals as a franchise owner today by calling 1-800-377-8722!
About VR Business Sales
VR Business Sales is the world’s premier business intermediary firm.

With a combination of global strength and local experience, VR’s 30 years of successful business sales through Valued Representation, is the reason more and more business buyers and sellers demand our proven skills and resources to help them succeed in an increasingly complex market.

VR specializes in the sale of privately-held companies and offers a multi-service approach to matching buyers’ interests, goals and desires with the right businesses. VR Business Sales is committed to a diversified menu of business advocate services, with more than 130 locations. Consequently, we have proven our value to business clients across the country and around the globe.

For more information about VR Business Sales, please call 1-800-377-8722.

Seller Financing Contributes to Successful Business Sales

Article by Peter King, CEO of VR Business Sales

As is taught in training at VR Corporate for all franchisees, seller financing can help to sell businesses. Most sellers are entrepreneurial like your past and present clients, selling one business to invest in another.
You can bring both buyers and seller together to close a deal through seller financing. This can help you in a variety of circumstances where obtaining capital from lenders can be difficult in this economy.
Benefits of Seller Financing
The major advantages to using seller financing include:
  • Buyer and Seller savings in closing costs;
  • Ability to negotiate the interest rate, repayment schedule and other loan conditions;
  • Requesting special conditions of the purchase like inventory, furniture, fixtures and expenditures;
  • Seller receiving a higher yield on investment through equity with interest.

Read full article here…

You can benefit from the extensive training VR offers to all our franchise owners.
See our VR Franchise Webinar Videos here for more information about the tools and training included in the VR Business Brokers Franchise.

You can call VR Headquarters for a personal interview to find out more at 1.800.377.8722

 

 

The VR Advantage – Buying A Business with VR Business Brokers

VR Advantage – Buying with VR
By JoAnn Lombardi, President VR Business Sales and Mergers & Acquisitions

VR’s International Network of Professional Business Intermediary’s offers over thirty years of successful experience to the buyer of a small or mid-size business around the world.

Our tradition of bringing qualified buyers and committed sellers together is the cornerstone of the VR organization.

VR boasts as being the only network of business intermediary’s that requires a fulltime commitment on behalf of its franchisees and associates.

VR has never allowed part-time offices and part-time associates to represent our clients, and makes the promise that it never will in the future. Our responsibility and obligation to the general public is taken seriously, therefore, we do not allow part-time, work-at-home individuals help find the correct qualified business opportunity for you.

Our Intermediaries are continually trained on market trends and conditions, financing options and techniques, and transaction structures, which allow the VR network to better serve its acquiring clients.

Every highly trained and experienced VR Business Intermediary is dedicated to your needs, and eager to share their knowledge and expertise with you.

Choosing VR gives you the ability to search for qualified business opportunities on a local, regional, national, and international basis.

VR will aid you with your financing requirements, help package the transaction for the lender approval, and give you access to our national banking relationships. No transaction is too small or too large for VR to lend its expertise.

You can also benefit from the VR Business Franchise Opportunity by opening your own VR office.

Contact our Franchise Development specialist at 800-377-8722  or send us a VR Franchise Information Request

Also check out the VR Webinar Presentation here…

 

VR Business Franchise Owner in McKinney Texas Highlighted in Dallas Morning News

Larry Lane, Owner of the VR office in McKinney, Texas, was recently showcased in the Dallas Morning News, offering useful recommendations to small business owners who are looking to sell their business.

In the article, Larry discusses five tips to plan for an exit strategy:

Setting a Timeline

Since it can take more than a year from listing a business for sale to completing the transaction, the best time to sell will always remain when a business has a growing revenue stream with profits at their peak and more untapped potential to have greater success.

Making Sure the Business is Ready

The business should have a diversified customer base where no client makes up more than 15 percent of the total sales. A strong management team should be in place with updated equipment and software.

Focusing on Profitability

Make sure that the business has maximized their profits. Many business owners will instead maximize expenses to minimize profits, which in turn minimize taxes; however, this will turn away potential buyers who focus on profitability. Remember, most business transactions are based on a multiple of earnings.

Learning Business Valuation Trends

Most owners need to be educated in the importance of having a valuation done on their business to avoid offering the wrong asking price.

Understanding Tax Ramifications

Make sure that the business owner understands the full tax implications of a business sale. Have the owner visit an accountant to cover all the odds and ends, and ask him or her if they would consider providing seller financing – this typically defers some taxes and allows for a higher asking price.

Larry saw the potential that VR Business Brokers has to offer, which led him to become a successful business owner of his franchise location in McKinney, Texas in facilitating the buyer and selling of businesses.

For more information about owning your own successful VR Franchise please contact VR Headquarters at  (800) 377-872.

For a quick review of the VR Franchise please see the VR Franchise Webinar slideshow presentation 


How To Sell a Business – Training from VR Business Brokers

Article by JoAnn Lombardi, Pres. of VR Business Brokers

All business owners will one day exit their company.  This fact is inevitable.  Therefore the sale or divestiture of the business is one of the most important decisions an owner will ever undertake.

Every step in a business sale demands an extremely specialized effort, and at VR we know that there are no shortcuts to a successful transaction.  Transition to an entrepreneur about to sell a business, means exploring new options in life and making a decision to change.  Owners of businesses view this decision to sell as an opportunity to reap the rewards of years of sacrifice, dedication, and hard work.

Making quick, objective decisions comes naturally to the business owner.  So why is the decision to sell the company so difficult?  Because it’s made by weighing the advantages of moving on against the time and energy that’s been devoted to growing to operation.  The decision to sell a business usually goes far beyond the economics.  It involves defining lifestyle, and redirecting personal energies, resources, and values into the next stage of life.

The VR organization prides itself on recognizing the importance of being a trusted advisor to our clients.  VR intermediaries around the world guide business owners through the transition of divesting their businesses.  Individuals joining VR have made the commitment to a profession that over the next 25 years will aid over ’70 million “Baby Boomers” change from corporate careers to entrepreneurs and from entrepreneurs to retirement.

Hundreds of thousands of businesses change ownership each year, and though the reasons for selling vary, there is one common goal…maximizing the proceeds from the sale.  This is what a VR business intermediary is trained to achieve.

VR defines small business sales as those transactions with a value of less than $2 million.  As you begin your new profession this is the market place that most people gain their experience.  For the past thirty years, twenty percent of the businesses in this value range change ownership ever year.  That’s 1 in 5, in every town, in every city, in every state.  That’s the market and opportunity for successful business intermediaries.

Valued Representation of a business by a VR intermediary is a complex process that is fulfilling emotionally and financially upon successfully completing a transaction.  As a VR intermediary you will be trained in a manner that draws upon years of substantial knowledge, professional experience, and success.

Upon joining VR you will be trained on how to:

  • Build an inventory of quality businesses to sell
  • Value and price a business
  • Formulate different transaction structures to maximize value
  • Prepare a VR Business Profile
  • Confidentially launch a marketing campaign
  • Educate buyers and sellers on the transaction process
  • Recast financial statements for the privately-held company
  • Facilitate negotiations
  • Prepare all necessary documentation
  • Navigate successful due diligence

And of course… how to successfully close business sales!

As a professional VR business intermediary you will manage the process of selling businesses with the goal of successful transactions, while the owners continue to manage their businesses.  You will be an invaluable advisor during the process, offering proven valuation and marketing techniques, along with unmatched negotiation skills.

VR offers extensive training to all of the VR Business Franchise owners. Through the VR training specific methods and techniques on every aspect of being a successful business broker are covered in full detail.

For information on how to become a VR Business Broker and open a VR Business Franchise office, please call (800) 377-8722 or visit Owning your own VR Business Franchise, also visit VR on Facebook  at VR Business Franchise Facebook Welcome page and VR Franchise Facebook Updates.

VR Business Brokers – William Park 2010 Most Valuable Intermediary

 

VR Business Brokers names William Park 2010 VR Most Valuable Intermediary

William Park is the first two-time MVI winner, having previously won the 2008 honor.

Since becoming partner of the VR office in Artesia, California in 1998, William has shared his extraordinary wealth of experience and knowledge with those he comes in contact with.

His leadership, excellence and commitment have helped him and the VR office in Artesia continuously make the Top 10 in the organization.

“I would like to thank VR for this honor of being selected the 2010 MVI,” says William. “It’s a warm recognition in a money-driven industry such as ours. To be successful, you must be disciplined, and your focus should be on setting up meetings with buyers and sellers. A successful day is measured by how many buyers and sellers you spoke to or met.”

William cites a few areas that every VR office can learn and integrate into their practices:

  • Any office can overcome the worst of times when 200+ listings are being maintained such as with the Artesia office.
  • Any office will struggle when the average agent has less than 10 listings. The VR office in Artesia has continued to see most agents’ average 20+ listings.
  • Go after listings that are selling at the time such as food-related businesses.
  • If a new listing is unique to the inventory, get 2-3 similar listings to have a chance at selling one.
  • An associate’s primary focus should be on creating deals, meeting buyers and sellers.
  • An owner’s primary focus should be on breaking down those barriers that distract an agent from their primary focus – “Less paperwork, less computer work, less bureaucracy, more razzle dazzle.”

“It’s not easy to manage as a ‘Sales Leader’ because it’s instinct for owners to worry more about policy managing as an ‘Office Owner.’ Obviously, it would be ideal to strike a good balance, but I prefer the title of ‘Sales Cheerleader.’

William describes being a business intermediary as “something difficult to be great at, but a great thing to be good at.”

We congratulate William Park as the 2010 VR Most Valuable Intermediary.

VR each year celebrates its most successful intermediaries for highest achievements in the business brokerage industry.

To inquire about becoming part of the successful group of VR Business Franchise Owners please contact VR at (800) 377-872.

For more information on opening a new VR Business Brokers Franchise office, please visit Owning your own VR Business Franchise, and also visit VR on Facebook  at VR Business Franchise Facebook Welcome page and VR Franchise Facebook Updates.