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Scot Cockroft Featured as Top Dealmaker
by the Dallas Business Journal |
 VR in Dallas Owner Scot Cockroft was showcased as Top Dealmaker by the Dallas Business Journal recently.
In the article, the DBJ highlights Scot's facilitating
the sale of MedicOne Medical Response of Farmers Branch in late 2008. The sale had a substantial impact on the community, where the ambulance company may have gone out of business had Scot not found a buyer that had strong insight about the industry. The buyer was willing to invest to get the business up to speed with upgrading technology and equipment.
In the past 18 months, Scot has facilitated deals ranging from $1 million to $25 million, covering many industries from photography, automotive, manufacturing and wireless telecommunications.
Scot is a tremendous contributor to VR with his years of experience, expertise, and resourcefulness; but, most of all, his interest in knowing and understanding his clients and their needs. We wish Scot further success as we delve deeper into 2010.
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Hot New Franchises!
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The Franchise Showcase is designed to support individual franchises and existing small business owners by making franchise ownership more affordable.
BookKeeping Express
BookKeeping Express offers the only national franchise model for outsourced bookkeeping. We are leading the industry by bringing 21st century modernization to bookkeeping and by providing a proven, turn-key business model perfectly suited for business professionals and entrepreneurs.
We are a solution to the "small business dilemma" - filling the void between the services of a solo bookkeeper and a costly CPA. BookKeeping Express delivers quality bookkeeping services to clients from all industries, and our franchisees are perfectly positioned for decades of reliable growth.
Andy onCall
 Andy OnCall is an inexpensive, manageable franchise opportunity in the home repair industry. They are a customer service organization in the truest sense of the word, connecting craftsmen and homeowners. Andy OnCall benefits the craftsmen who need their assistance obtaining work and managing the business side of performing minor home repairs. Homeowners benefit from their assistance in locating a professional, reliable source for getting their minor home repairs completed with a guarantee.
Pizza Fusion
 Pizza Fusion was founded with a goal of filling a void in the restaurant sector for fresh, organic, handcrafted food. Their menu is aimed at attracting not only the typical pizza consumer who desires good tasting pizza, but also consumers who follow a vegan and organic lifestyle and consumers who battle with Celiac disease, as they offer gluten-free pizzas. They strive for their food to not just be great tasting, but also to be healthier than the food served at many other restaurants.
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Gaining the Edge
Increasing Value through Harnessing New Concepts
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Many businesses in China and India are pursuing a radical but pragmatic bootstrapping approach to build up their resources, while focusing on marketing opportunities.
Rise of Bootstrapping
Bootstrapping refers to an array of techniques that are designed to help businesses substantially improve with limited resources. This includes rapid increasing innovation that's designed to obtain revenue and market feedback quickly, while balancing the resources of other businesses.
Bootstrapping doesn't just apply to small, entrepreneurial businesses but to large ones as well. This has become apparent since China has surpassed the United States in the private entrepreneurial sector as the global center of management innovation and pioneering management techniques.
Click here to read the full article.
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Utilizing the Enterprise Information System
Imperative to Organizational Productivity and Commerce
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Information systems have become an integral part of how a business works and competes. They now support every business objective and practice. The systems that support core business activities for the entire organization are known as enterprise information systems or enterprise resource planning systems. Without them, no organization could easily take orders from customers, buy goods from suppliers, make sure that there is sufficient inventory or keep track of employee compensation and vacation balances.
How the System is Used
Enterprise information systems consist of some of the following areas, many of which are linked in the business' technology architecture:
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THE VR BLOGGER
Choosing the Right Business for You as a Buyer
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When you are looking to buy a business, it is important to find the right business first before worrying about the right price. Never base your search simply on finding a good deal because you will find yourself ultimately in a place that you don't want to be.
The price must be considered secondary to your personal preferences relating to how you want to spend your time and energy. Remember that you will be spending between 40 and 80 hours a week at the business you choose to buy.
Continue Reading the Full Article.
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Highlighted Transactions
And New Engagements
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SUCCESSFUL TRANSACTIONS
Profitable Apparel Retailer
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VR Mergers & Acquisitions of Malvern, PA, a leader in the sale of privately-held companies, recently facilitated the strategic sale of a profitable apparel retailer.
The transaction, which closed this month was handled by Matt Coyne, a business intermediary specialist.
VR is celebrating 30 years as the world's only network of full-time professional business intermediaries.
VR has sold more business in the world than anyone®.
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SUCCESSFUL TRANSACTIONS
eCommerce Company
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VR Mergers & Acquisitions, located in Indianapolis, IN, the leading business intermediary firm in the area, has recently facilitated the strategic sale of an eCommerce company.
Troy Frank, a VR Intermediary, represented the seller throughout the transaction that was completed in February 2010.
VR is celebrating 30 years as the world's only network of full-time professional business intermediaries that addresses the needs of small and mid-sized businesses.
VR has sold more business in the world than anyone®.
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NEW ENGAGEMENTS
Successful Firearms Retailer
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VR Mergers & Acquisitions located in Wichita, KS, announced today it has been engaged by a firearms retailer to assist in facilitating the sale of their business.
This extremely successful retail firearms store has been a destination for gun enthusiasts, hunters and sportsmen (and women) for over 25 years. With an impressively extensive inventory, diverse selection, unparallel knowledge and exemplary customer service this business has flourished. Go to VR Web Site for further details.
VR is celebrating 30 years as the world's only network of full-time professional business intermediaries that addresses the needs of small and mid-sized businesses.
VR has sold more business in the world than anyone®.
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NEW ENGAGEMENTS
Garden Center
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VR Business Sales in Lisbon, Portugal, specializing in the sales and acquisitions of small and mid-sized businesses, has announced that the company has been retained to facilitate the sale of a garden center.
This company specializes in the retail trade of flowers, plants and seeds for gardens, garden services, grooming of green areas and other related services. Click here for further details and contact information.
Celebrating 30 years as the world's only network of full-time professional intermediaries, VR addresses the needs of small and mid-sized businesses.
VR has sold more business in the world than anyone®.
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Now is a Great Time to Become Part of VR!
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 With baby boomers selling their businesses to retire and frustrated corporate executives and managers looking to buy a business to replace their corporate job, NOW is a great time to become part of VR!
VR Office
Panama City, Panama
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2010 Today's Business Owner® Publishing Dates
January 19, 2010
February 15, 2010
March 15, 2010
April 15, 2010
May 14, 2010
June 15, 2010
July 15, 2010
August 13, 2010
September 15, 2010
October 15, 2010
November 15, 2010
December 15, 2010
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VR Global Headquarters
One East Broward Boulevard
Suite 1500
Fort Lauderdale, FL 33301
Phone (954) 565-1555; Fax (954) 565-6855
http://www.vrbb.com
Copyright © VR 2009-2010
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Ask a VR Intermediary?
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How Can I Obtain Financing to Buy a Business?
Harold Forman,
Des Moines, IA
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Dear Harold,
With more people wanting to go into business ownership, there is an effective way to go about buying one through the U.S. Small Business Administration and lenders that specialize in dealing with business acquisition loans.
Most people that decide against owning a business do so because there is a lack of a down payment and startup capital on their end. Today, SBA-guaranteed loans have long-term financing with a low down payment that is attractive to small business owners.
Defining a SBA Loan
The SBA's definition of a small business is one that has average annual revenues of less than $5 million. That average is typically taken over the previous three years. Lenders are looking to finance sound businesses with sound business owners.
Requirements for a SBA Loan
The major two areas where the lender will be casting a scrutinizing eye will be the borrower's personal credit history and the cash flow of the business. Lenders generally will require three years of personal financial history from the prospective buyer and three years of financials for the business. In reality, it is the cash flow of a business that makes it both sellable and attractive for financing.
In regards to analysis of the business financials, adjustments will take place as lenders realize that the books reflect numbers that are unique to every business. Salaries may be distributed differently in a business with a handful of family members versus one owner and four non-family associates. Other expenses such as discretionary or one-time expenses may be treated differently by a new owner.
In the long run, a lender will consider industry standards for adjustments regarding differing salary requirements between the seller and the proposed purchaser, and determine a reasonable amount for discretionary and/or non-recurring expenditures and standards adjustments for non-cash items such as depreciation or amortization.
While a business acquisition loan backed by the SBA requires a 20 percent down payment, there are creative ways to make the financing work. A borrower may be able to buy a business with less than 20 percent down by having the seller finance part of the deal.
Collateral
This is another concern that consumes borrowers. Besides a down payment, how much loan-to-value is there with a SBA-backed business acquisition loan? Lenders have their own formulas for calculating collateral value that will be pledged to secure a loan. Property and equipment certainly figure into the equation. To some extent, good will carries value as well. Overall, a low down payment for a SBA business acquisition loan allows the borrower to keep a larger percentage of cash available for operations.
Other Factors that Lenders Review
Lenders will want to find out about other areas besides finances such as the ability of the borrower and business projections. Generally, a lender will look to see if a borrower has direct or related industry experience. They will want to know about sales goals, marketing strategies, growth plans and a profile on the management of the business.
In addition, any lender will want and need the confidence of knowing that the entrepreneur has detailed plans to conduct the business profitability such that it will demonstrate the ability to repay the loan.
Shopping for a Lender
You will want to find a lender that specializes in business acquisition loans. Some that specialize in SBA financing have greatly streamlined the loan process and are familiar with the underwriting of business acquisition loan requests.
Length of SBA Loan Process
This is always the pivotal question: how long does the SBA loan application process take? People have a perception that SBA financing will take something short of an eternity. Actually, the prospective business buyer can be pre-qualified within 24 hours, and certain lenders who specialize in SBA financing can get the borrower to the closing table in just four to six weeks.
As with any major financial commitment, it is important to consult experts in the field to protect and advise as the transaction progresses. Legal questions, ranging from property lines and labor concerns to tax issues, are a very real part of business acquisitions and necessitate the consultation of an experienced attorney and certified public accountant. A few dollars invested early can save you money and worry down the road.
With prices ranging from several thousand dollars to a few million, business opportunities abound for nearly anyone who wants to be his or her own boss. An SBA-backed loan is a great resource to get you started.
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