Taking the Time to Consider Your Option How Seller Financing Can help you Find a Qualified Buyer for Your Business By Peter C. King, VR Business Brokers/Mergers & Acquisitions, CEO When you are exploring the option of selling your business, you may want to offer seller financing in order to attract a larger buyer pool, which, in turn, will generate a higher selling price. At VR, we strongly recommend using this route to help sell your business. Whether you've sold a business before or not, VR has each owner consider how much of the price you would be willing to finance to find a buyer to take over your business. The reason every VR Business Intermediary uses this practice is simple: All cash buyers for businesses are rare. In most cases, it’s not economical for a buyer to do so when they’re also looking to grow and expand the business they are looking to acquire. |
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Knowledge is Power The Advantages of Self-Educating Whether Buying or Selling By JoAnn Lombardi, VR Business Brokers/Mergers & Acquisitions, President As any VR business intermediary will tell you, buying a business gives you a greater chance of success than starting one from scratch. 80% of new businesses fail in the first three years due to factors such as poor location, low product quality, under-capitalization and lack of management skills. Buying an established business will provide you with a stable location and an existing customer base and product. As A Prospective Buyer When you decide to look for an existing business, you have to find one with the potential to grow. By acquiring an ongoing concern, you have the opportunity to increase your profits; therefore, increase the value of what you have bought. Most business owners will be willing to train you in the daily operations of the business. This will increase your chances of long-term success over starting a business from scratch. |
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2018 Forecast: 5 Major Trends Hitting the Middle Market (Part 2) Trend 4: Blurring the Lines Where private equity started and growth capital or venture capital ended used to be easily defined. However, times are changing. Once again as a way to gain a competitive advantage in today’s very competitive market many firms have changed their investment approach. In days past, firms that were once generalist firms—pouring over deals in various sectors—soon became sector focused firms— touting their in-depth knowledge of a particular sector in hopes of impressing potential targets. Now, some control buyout firms—that were positioned as firms that would only complete deals where they could take a majority ownership interest—have changed their tune. An increasing number of firms are now interested in pursuing growth equity deals as well. For example, at the end of December, Apax Partners closed on $1 billion for investment in growth-stage technology companies. The new fund will target minority and buyout investments in enterprise-technology and consumer Internet companies worldwide, aiming to deploy $30 million to $150 million of equity per deal. |
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Why 2018 Is the Right Time to Start A Business For those who want to start a business for themselves, one of the biggest decisions besides what kind of business to buy is when to make the leap. It can be nerve-wracking to think of leaving a secure job and income to endure the risks (and rewards) of business ownership. Fortunately, the stars have aligned to make 2018 a year full of newfound potential for small businesses. From the 2018 tax reform that offers noteworthy savings to small business, to the growing economy and ease of securing health insurance for small business owners, there’s never been a better time to start a business and enjoy being your own boss. Here’s a look at notable trends that will benefit aspiring entrepreneurs looking to start a business in 2018: |
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Your dream business awaits you...take advantage of these featured opportunities VR has for sale now! Auto Repair & Tire Shop with 5 bays | $140,000 | Artesia, CA Authorized Commercial Garden Equipment Dealer| $900,000 | Artesia, CA Established Mediterranean Cuisine Restaurant| $1,000,000 | Grapevine, TX Online & Storefront Fish & Coral Retailer | $240,000 | Grapevine, TX |
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VR Located in Aspen, CO is assisting in the sale of an Elite Cycling Equipment Manufacturer Leading high-performance cycling equipment manufacturer offers world-renowned equipment to competitive athletes. The cycling equipment has been used by racers in world class competitions including the Tour de France. The business has been profitable since inception and offers growth potential from large untapped markets. The business' greatest competitive advantage is its reputation as an expert resource for what makes good gear good and for what makes great gear great. |
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VR in Waukesha, WI facilitated the Sale of a Custom Cabinet Shop A custom cabinet shop is available for purchase in Southeast Wisconsin. Multiple revenue streams such as mantels, cabinets, etc. bring in over $3 Million in annual sales. This business targets both residential and commercial properties and is very well-known and respected in their local community. Seller is willing to provide training to a new buyer to assist in a smooth transition and is also willing to negotiate a non-compete agreement with a qualified buyer. A large list of assets with an estimated value of $350,000-$450,000 is included in the asking price. Real estate is not included in the asking price. Congratulations to Tim Bullard on another successful transaction! |
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Transportation, Warehouse, Logistics Company| $413,000 | Artesia, CA Truck Equipment Up-Fitter and Trailer Supplier| $200,000 | New Haven, CT Branded Landmark Clothing Store| $705,000 | Naples, FL Thinking of selling your business or looking for an established business to purchase? Contact a VR Office near you! |
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Have you ever considered selling businesses? |
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