VR Has Sold More Businesses In The World Than Anyone.® |
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The Journey Ahead: Map Out Succession, Retirement and Estate Plans Before You Exit Your Business By JoAnn Lombardi, VR Business Brokers/Mergers & Acquisitions, President You’ve worked for many years to build a successful company, and now you’re starting to think about retirement. To ensure a smooth exit from the workplace, establish your retirement and estate plans now — well before you’re ready to sell or transfer your business. Early planning will help ensure that you adequately provide for your retirement needs and the financial security of your heirs. It will also foster the continued success of your company and its employees. Assess Where You Are Before determining where you want to be when you’re ready to retire, assess where you —- and your business — are financially today. It sounds like a large undertaking, but you can start by preparing a detailed financial analysis of your business with the help of a valuation professional. This expert will review historical data to determine your company’s current value. You will also need to examine all contracts and agreements to make sure your business is transferable. Transfer restrictions, such as professional license restrictions, franchise agreements, lending agreements, shareholder agreements or other types of contracts, can slow down the process significantly. |
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Every Business is a Risky Business By Peter C. King, VR Business Brokers/Mergers & Acquisitions, CEO Every business faces risks, but some companies are riskier than others. Assessing a company’s risk is an important part of estimating its value. Risk and value are inversely related. That is, the higher a company’s risk, the lower its value. Risk is a function of a company’s external threats and internal weaknesses, but these forces only tell part of the story. On the flip side, a business’s strengths and opportunities minimize risk and, therefore, build value. When valuators focus exclusively on one side of the story, their conclusions are likely to be skewed. For example, to minimize an estate’s tax burden, an appraiser might unduly emphasize a company’s weaknesses and threats to justify excessive valuation discounts. Conversely, the IRS’s expert might downplay these negative elements and, instead, call attention to the business’s strengths and opportunities. |
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3 Ways Family Offices Can Better Compete in a Deal Process Family offices are the hot new buyers in the lower middle market, but involving them in a deal process is not without headaches. "Many of them will indicate they want deal flow, but when we call them about a deal they’re not very responsive," says James Cassel, chairman and co-founder of Miami-based investment bank Cassel Salpeter & Co. There are an estimated 3,000 family offices in the US alone, and about a quarter of them currently invest on a direct basis, according to a 2017 report by financial technology platform iCapital Network. Family offices are also one of the fastest growing classes of buyers on Axial — the number of family offices on the network has doubled in the last 12 months. Here are three tips for family offices looking to compete more effectively with PE firms and other investors. |
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What's a business worth? How to benchmark the value of a private company What’s a business worth? It’s a question that arises frequently for business owners, business intermediaries, and a wide spectrum of tax and financial professionals. Of course, every business is unique, and there-fore there is no formulaic one-size-fits-all mod-el for how to value a business, and an appraiser utilizes his or her professional judgment, experience, and analysis to reach a valuation conclusion. But what if you want a general ballpark value of what a specific business is worth? One way to determine this is to look at how much oth-ers have paid for similar businesses relative to different earnings measures. This post will give you a basic overview of comparable company analysis and provide you with valuation multiples for major industry sectors in BVR’s How to Benchmark the Value of a Business e-book. First let's consider three financial metrics: |
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Preschool Including Property | $6,500,000 | Artesia, CA |
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VR Located in Raleigh, NC is assisting in the sale of a Cash Flowing Historic Venue A one hundred plus year old in a town adjacent to a major metropolitan area in North Carolina is seeking a new proprietor. This venue has numerous upgrades that were made. Upgrades to the kitchen and also upgrades were added in the living quarters. This venue is a cash flowing business. It has a great reputation to its name and where it is located. Most of its bookings are well into the future. |
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Overcoming the Bankers Dreaded Objections 1. No Creative Addbacks
a) Must be documented through IRS tax returns and/or interim financials b) Allowable: nonworking friends & family on payroll if reported on W-2 c) Unusually high fees, legal or bad debt d) Excessive owners compensation e) Non-recurring expenses f) Moving costs g) Product development expenses 2. Seller Tax Return Verification a) Get a signed 4506T, from seller, on day 1 3. Comprehensive Business List of Insurance Requirements to Close
a) Obtain list from seller b) Provide contact information for the agent c) Bank can work directly with buyer’s insurance provider to obtain required insurance certificates with the appropriate SBA language |
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Congratulations VR in San Antonio, TX for Facilitating the Sale of a Publishing Company This was one of the largest companies in its field, who specialized in the creation of beautiful, hard cover books. The unique service offered a concept with a bright future, and these beautiful books cannot be replicated on digital devices. A smaller business model at this company involves printing on demand books in very short runs. Their service was offered to self published authors and anyone needing a soft cover book in quantities of 50 or more. We congratulateOmar Garciaon this successful transaction! |
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Wholesale Distributor of Packaging | $1,500,000 | Artesia, CA Psychology Practice with Property| $300,000 | Tampa, FL Thinking of selling your business or looking for an established |
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Have you ever considered selling businesses? |
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