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At VR, we are acutely aware of what it takes to sell a business.
Preparing the seller and assisting the seller in preparing the business
to achieve the maximum gain from the sale are two important roles
of the professional Intermediary. Owners sell their businesses
for reasons stemming from retirement, partnership disputes, personal
relocation, family concerns, the desire for change, illness or
to enter another business venture. Knowing the reason for the
divestiture helps your VR professional in structuring the most
advantageous transaction. VR turns to its professional alliances
to help you seek the appropriate tax strategy, succession plan
or investment strategy to continue to help you maximize the benefit
of the sale.
VR has identified specifics needed
in order to complete a successful transaction:
- "Provable" books and records increase
the numbers of potential buyers
Buyers want proof of sales and profits
the business has attained in the past.
- Expectation of a reasonable price and terms
Educated buyers only consider competitively
priced businesses.
- List of assets including furniture, fixtures
and equipment.
A complete inventory that can be referenced
during inspection.
- Attractive lease
Knowing the terms of assignment or of
a new lease.
- Best possible appearance
Having the business premises neat, clean
and in good repair.
- Valuing the business properly
A valuation on the business creates a
document that proves value to the buyer and shows the business
to be competitively priced.
- Covenant not to compete
Preparing the terms of non-competition
within an appropriate distance and for a reasonable period
of time.
- Reason for sale
Buyers will want to understand the reason
for sale and be comfortable that there isn't any undisclosed information
that could negatively affect their investment in the future.
- Time is of the essence
Be prepared to move forward when a qualified
buyer shows interest in the business.
- No surprises!
Most adverse situations, such as landlord
problems, outstanding loans, tax arrears, unfavorable equipment
leases, and even non-compliance with zoning, health or other
regulations, can be overcome if known to your professional VR
Intermediary.
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