The Selling Process
If you are thinking of selling your business, you no doubt have many questions.
We have the experience and objectivity to answer them and to work with you throughout the process to make each transaction as smooth and seamless as possible right through closing.
VR “professional intermediaries” have been involved in the buying and selling of companies for over 35 years held company.
To achieve this goal, VR takes extraordinary precautions to ensure that every business is selling a business properly priced and has a sound financial structure.
VR will not knowingly misrepresent a business nor will they ever encourage a buyer to underbid the client’s price and VR operates on the fundamental premise that there can be no losers in the successful sale of a privately.
Brief summary of the selling process
- Initial Meeting: We want to learn as much about your business as possible and help you understand the selling process.
- Valuation & Pricing: We review your business financials, research the sale of other similar businesses and provide a professional estimate of fair value for your business. In some cases, we may recommend a third-party valuation. We know what businesses like yours are actually selling for and how to price it right. The right asking price is critical but so too are other terms, such as down payment financing, non-compete agreements and training. Experience in deal structure often makes the difference in a successful transaction.
- Documentation: You provide us with all the necessary documents and data required to sell your business.
- Business Profile: We will prepare a business profile describing the business, its achievements, competitive strengths and opportunities including a financial picture of your firm.
- Advertising & Networking: We aggressively, but confidentially, advertise your business to get the highest possible response and the greatest number of prospects. With our network of offices and buyers, leading Internet sites to which we subscribe, multiple listing service and other proprietary techniques, we will get you exposure you can’t get on your own. When the goal is finding a strategic buyer, we will conduct a confidential direct marketing campaign to contact these buyers.
- Buyer Screening: Our business intermediaries interview and screen buyer prospects to eliminate those who are unable or unwilling to purchase a business at this time. We will obtain a signed non-disclosure agreement to protect your confidentiality.
- Buyer Introduction & Follow-up: Our business intermediaries will discuss the various components and benefits of the business with the potential buyer and work with them until they make an offer to purchase.The decision to buy a business is an emotional and difficult one. We know how to assist buyers to help them overcome their concerns.
- Buyer Meeting: A possible meeting with you, the potential purchaser and the VR business intermediary is set up to prove the buyer’s interest and give you an opportunity to learn more about the buyer. You will never meet a buyer without a VR business intermediary present.
- Financing Assistance: We have many financial resources, including lenders who specialize in SBA or commercial business loans and we will assist you and the buyer in determining which method of financing will work for all parties and lead to a successful closing.
- Offer to Purchase: We encourage buyers to write a fair offer accompanied by an earnest money deposit check. We will present the offer for purchase to you. At that time, we can provide you with background information on the buyer and explain the buyer’s reasoning behind the offer.
- Offer Review & Negotiation: We will explain the terms and conditions of the offer to you. You may accept the offer as presented or you may use our knowledge and experience to structure a counteroffer. When you’re emotionally involved in your business, it’s difficult to be an effective negotiator for its sale. We represent you vigorously to ensure you receive the full market value for your business.
- Mutual Acceptance: At this critical time VR business intermediaries use their training, negotiating skills and expertise to create a mutually acceptable agreement and it becomes a contingent purchase and sale agreement.
- Management through Closing: Our job is not done until your business is sold. We work with you and your advisers (attorney, accountant, landlord, etc.) and represent you all the way through closing of escrow.
- Inspections & Contingency Removal: Nearly all offers are contingent upon the buyer’s inspection and approval of all aspects of the business operation including financial records. The handling of due diligence is the most important step in the process of a successful sale. You will need to satisfy the buyer that you have all the necessary licenses and permits necessary to operate the business. The buyer must remove all the contingencies for the agreement to become a binding offer for purchase and sale.
- Lease Assignment: We work to present the buyer’s experience and financial qualifications to the landlord in order to obtain a lease assignment or new lease.
- Note Assumption: If there are existing equipment leases or loans that the buyer is to assume, we can work with the lender, closing attorney or escrow company to transfer those obligations. Inventory – When applicable, we will assist you in finding professionals to assist you with the inventory process.
- Closing Preparation: The closing documents are based on hundreds of prior transactions. They are tailored to meet the individual needs of you and your buyer at the time of the sale. They are coordinated by either an attorney or an escrow company.
- Successful Sale: We assist with the many details required for a smooth transfer of possessions. All parties then sign the final agreement, the funds are distributed and the business is transferred.