The Selling Process
We know there are no shortcuts to success. Selling a business to a qualified buyer at the best price can be a lengthy process. Please review the summary of the services we provide for business sellers.
Expert Advice: If you’re considering selling your business, it is no doubt that you have questions and concerns, especially if you’ve never been through the selling process before. Well, you’re not alone. Our clients prefer to use us because they want someone with experience and someone who sells only businesses. Someone who understands customer service and will contact them regularly throughout the process to update them, answer any questions they have, and help to alleviate any concerns they might have.
VR has been selling businesses since 1979 and has sold over 65,000 businesses. We value our clients and we can provide expert advice founded in deep experience.
Business Valuation: We know what businesses like yours sell for and we know how to price it right. Business value depends on many factors including the industry it’s in; the length the business has been open; and the perceived risk from a buyer’s standpoint. Furthermore, there is no one magic number that can be applied toward your gross sales or your EBITDA—this is a common misconception. We can provide a professional estimate of the fair market value of your business.
Structuring: We understand that the right price is critical, but have you considered other terms that might be key? Terms such as cash flow to debt service, down payment, seller or 3rd-party financing, non-compete agreements, franchise transfer fees, and seller training are important to the buyer and must be considered in advance. Experience in deal structure often makes the difference in a successful transaction.
Advertising & Networking: We will get your business the exposure it needs and we take pains to uphold your confidentiality. We use our worldwide network of offices and buyers, all the leading Internet sites, newspapers, trade journals, the multiple listing service and other proprietary techniques.
Buyer Screening & Qualification: Many sellers try to sell their businesses on their own first before they contact VR. In addition to not getting the proper exposure for their businesses, the other common theme among them is the number of intrusive calls from unqualified buyers. We pride ourselves on our rigorous screening process. We also treat every potential buyer on a “need-to-know” basis. Namely, even if a confidentiality agreement/non-disclosure agreement has been signed, if the buyer isn’t a good fit for your business or cannot demonstrate being financially qualified, we do not disclose.
Introduction & Follow-up: We introduce your business to qualified potential buyers 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.
Negotiation: When you’re emotionally involved in your business, it’s hard to be an effective negotiator for its’ sale. We represent you vigorously to ensure you receive the full market value for your business.
Management Through Closing: Our job is not done until your business is sold. We work with you and your advisors (attorney, accountant, landlord, etc.) and ensure that the lines of communication are kept open and that everyone is hitting their milestones.
Seller’s Qualification Process
Our office prides itself in the qualification of both sellers and buyers. We feel that the businesses we represent in our portfolio are a reflection of the integrity of this office and we do not list businesses that don’t meet the expectations of our market.
VR also do not list businesses that are in financial trouble. When VR lists a business, it is at the fair market price for that industry. We will not inflate a price based on “what the business could be doing” because we feel that if a business had that potential, then the current owner would take steps to capture it.
Selling a business can be a lengthy process for the business owner. Our reputation and our marketing abilities typically generate many interested parties for a particular business and we try our best to limit both the buyer’s and the seller’s valuable time by ensuring that businesses are a good fit.
Our professional attitude toward a business sale dictates that we have a buyer qualification process in place. While you may be able to send an email to a competitor and receive back a sizeable amount of information about the business in question, we choose a different process at VR and we are repeatedly congratulated on this process by prospective buyers.
While some might see this as an imposition, it actually saves a great amount of time and prevents potential proprietary business information from being disseminated to too large of a group. Ask yourself this, “If I were a seller instead of a buyer, how would I want my information handled?” We’re sure you’ll agree how important our process is because one day you’ll be that seller as well.
Is this a right time to sell?
Schedule a confidential appointment with our agent and develop your exit strategy and prepare your business for sale.