Preparing for the Unknown Why an Exit Plan is Critical when the Time Comes to Sell. By Peter C. King, VR Business Brokers/Mergers & Acquisitions, CEO
Every business owner should have an exit plan in place. If you currently own a business, you know as every other successful entrepreneur knows that you won't be doing this forever. You want the value of the business to stay high so you can attract qualified buyers to take over ownership and expand whenever you decide it's time to sell. In order to ensure this happens, have an exit plan in place so you will be able to sell your business for the price you desire.
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Walking the Road to the American Dream What Buyers Want to Know When Looking to Purchase a Business.
People want to be their own boss. By far, this is the biggest reason people want to go into business ownership. Some may be frustrated in their current job or position. Others may not enjoy their current boss or employer, while others feel that their abilities are not being used properly or efficiently. Surprisingly, money is not the first reason; not because it isn't important, but it may not be the primary issue. Once a person decides to go into business for him or herself, he or she has to explore the options. Starting a business is one option, but there is a lot of risk for failure. Most people choose to buy an existing business because the risk is not nearly as high - established brand and customer base, existing inventory, place of operations, etc. |
2018 Forecast: 5 Major Trends Hitting the Middle Market (Part 1) |
Trend 1 The Evolution of Deal Sourcing
High levels of dry powder have put more pressure on fund managers to put capital to work, a danger in a market where purchase price multiples are high. To put things into perspective, over the past four years, the dry powder has expanded considerably above the 2007/2008 previous peak in North America and Europe, according to Probitas Partners. What's more, fundraising numbers and dry powder statistics are likely underestimated. "Traditional funds are being tracked, but more frequently LPs are co-investing and setting up separate accounts. Those are private arrangements and are not tracked. There is tremendous pressure on the market. It's going to continue to be hard to make good investments," says Kelly DePonte, a managing director with Probitas Partners.
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The Difference between Entrepreneurs and Business Owners
If you're a small business owner (or franchise owner), you may not think of yourself as an entrepreneur like Elon Musk or Mark Zuckerberg. Maybe you feel it's because you didn't invent a cutting-edge product like Facebook or a SpaceX rocket, or perhaps you haven't had to "pull yourself up by your bootstraps," as many in the tech sector have. But according to Webster's, an entrepreneur is "one who organizes, manages and assumes the risks of a business or enterprise." Nowhere in that definition is it stated that you must be scraping together funds from your basement start-up to build the next artificial intelligence robot or social networking platform. Business owners, franchisees and entrepreneurs all build, run, innovate and advance their businesses - no matter if their product is craft beer or their service is pet-sitting.
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Your dream business awaits you..take advantage of these featured opportunities VR has for sale now! |
Jewelry Manufacturer and Distributor | $1,750,000 | Naples, FL
Manufacturing Firm with 2 Businesses | $1,300,000 | New Haven, CT |
Beautiful, established, profitable deluxe health club and spa offers consistent cash flow with growth potential. Highly desirable location in fitness-oriented demographic with plenty of covered parking makes for convenient access to the local community. This business has been pre-qualified for SBA financing for $1.5mm of the $2mm asking price.
Beautiful, aesthetically pleasing, fully equipped health club and spa with state of the art equipment and luxury facilities. Competition: 60 reserved covered parking spots in the building makes for easy access to the local community. Membership is capped to protect customer service experience. Current membership is 45% below the cap. |
| VR in Artesia, CA Facilitated the Sale of an Auto Repair Shop. |
This full service auto repair business was a 33 year old, turn-key operation ready for the new owner-operator to give it the attention it deserves. Operated with employees and owner, it generates average annual sales over $792,000. There was a large database of existing customers, furniture, fixtures, equipment (FF&E), and leasehold improvements that were included in the sale. The business operates on leased premises with a monthly net rent of approximately $4,300.
Included in the sale was: - Long history of great customer base
- Turn key operation
- Fully staffed shop
- Strong market presence
- Seller stated strong profits
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Have you ever considered selling businesses?
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