With over 30 years of experience in selling small to medium enterprises (SME), VR has developed a dynamic and effective Transaction Process to promote a win/win outcome for both Buyer and Seller. Over the next two blog entries, we shall be sharing with you the 20 Step VR Process to Selling your business. Here are the first 10 Steps to a successful sale:
1. Initial Meeting:
The initial meeting serves as an introduction to VR and explanation on how VR can help maximize the value of your business and answer any questions. During this meeting your VR Intermediary will ask to review your business tax returns, company financials, brochures and sales materials, and any other pertinent information to understand your company.
2. Recast Financial Statements & Market Value Analysis:
Your VR Intermediary recasts your financial statements to reflect non-reoccurring expenses and prepares a market value analysis. If the decision has been made to obtain a third party business valuation, your VR Intermediary will prepare the business outline and coordinate with the Valuation Analyst.
3. Commitment:
VR will present and explain the recast of your financial statements and the market value analysis. Your commitment to us is to sell your business at a price and with terms consistent with the marketplace. Your VR Intermediary will prepare the engagement agreement for your execution.
4. Documentation:
You provide your VR Intermediary with all the necessary documents and data required to sell your business. Details are not released to prospective buyers without the execution of a Non-Disclosure Agreement (NDA) to protect the confidentiality of your business. VR will prepare a VR Business Profile based on the data and financial information you provide.
5. Advertising & Marketing:
We advertise and market your business to get the highest possible response and the greatest number of prospects. In addition to the VR corporate website vrbb.com and our VR office website, a website specific for your business will be developed in a manner that still protects your confidentiality. We also advertise on numerous other “business for sale” sites; local, regional and national publications; and access the VR Buyer Tracking Database. Today's Business Owner electronic magazine which is published monthly by VR, also links to our database of businesses for sale for its subscribers.
6. Buyer Qualification:
Valued Representation of your business means the qualification of potential buyers for your business, therefore eliminating those who are unable or not ready to acquire the company. All prospective buyers must sign a Non-Disclosure Agreement, complete the VR Buyer Profile and demonstrate financial capability prior to receiving detailed information on the company.
7. 7. Business Presentation:
The VR Intermediary presents your business to qualified potential buyers and receives, at the discretion of your Intermediary, a copy of the VR Business Profile. During the presentation and meeting, the various components and benefits of the business are discussed.
8. Buyer & Seller Meeting:
A possible meeting between yourself, the potential purchaser and the VR Intermediary, is organized to discuss the buyer’s serious interest and give you, the seller, the opportunity to learn more about the buyer.
9. Offer to Purchase:
Your VR Intermediary encourages the buyers to write a fair and equitable offer to purchase the business accompanied with an earnest money deposit.
10. Present Offer :
Presenting the Offer to Purchase includes an explanation of the terms and conditions, background information on the buyer, discussion of the contingencies and an understanding of the reasons behind the offer.
Next week, we will go over the next ten steps in the VR transaction process.