The Selling Process
When you work with a VR office, you get an experienced, hard-working team that will do what it takes to help your business stand out in the crowd.
When we represent a business, we do the proper preparatory work well before taking the company to market.
You only have one chance to make a good first impression on a buyer and we don’t want to squander the opportunity.
Every business sale assignment is unique, particularly from a marketing standpoint.
Nonetheless, there are elements of the process that are pretty consistent. These are outlined in bullet-point format below, followed by some more details on certain key elements and how we approach assignments.
VR Manages the Selling Process
- Seller expresses a desire for information on the selling process.
- Data gathering and owner interview.
- Recast financial statements.
- Agree on price and terms.
- Sign exclusive listing agreement.
- Assist seller in support of a formal independent, 3rd party valuation.
- Prepare confidential business profile/memorandum.
- Prepare video interview/presentation.
- Develop marketing strategy.
- Activate buyer search plan.
- Screen responses.
- Financially qualify buyers.
- Obtain nondisclosure/confidentiality agreement from buyers.
- Meet with buyer to present confidential business review.
- Determine buyer’s interest.
- Buyer tours the business and/or views video and asks questions.
- Probe buyer’s interest.
- Buyer makes an offer or passes.
- Assist buyer, as necessary, with offer to purchase.
- Facilitate negotiations.
- Reach an agreement. Contract signed by buyer and seller.
- Coordinate due diligence.
- Loan purchase package.
- Lender instructions.
- Assist in resolving any outstanding issues.
- Authorization to close.
- Review final documents.
Professional Business Profile
The most important tool we use in positioning your company to sell for the best possible price is a Business Profile. VR profiles are in a league of their own and may include extensive trade area analysis, Risk Management Associates data, extensive comparable sales information from VR’s proprietary BizComps data base, Pratt Stats, the Institute of Business Appraisers and other sources not available to the general public. When warranted, data and descriptions are wrapped into a professionally bound “book.”
We assist seller’s in determining the asking price for their business every time we take an assignment. However, buyers are sometimes skeptical of asking prices. In order to present them with an unbiased valuation, we recommend formal, independent business valuations for most businesses.
As appropriate, we advertise in local, out-of-area and national newspapers. We also advertise in trade and business publications and in business brokerage and M&A publications to ensure maximum exposure for your business.
The internet is a powerful tool for selling a business fast. If appropriate to your circumstance, we can reach thousands of prospective buyers every day through our internet sites. We post confidential listings on our own site plus three other major multiple listing websites and many other prominent sites, more than any other business brokerage.
We will work together develop a strategic marketing plan appropriate for selling your company on an optimum basis. We will target potential Buyers in places that you may not have even thought about. Our goal is to create a confidential “auction” for your business, ensuring top dollar for you.
At VR, we are keenly aware how important maintaining the confidential nature of your sale is likely to be to your business, its employees and suppliers. You can count on us to make all efforts to preserve the confidentiality of your business. Our ads and/or Internet postings are “blind.” Your business’ identity is hidden to the public. Only the facts necessary to generate buyer interest are presented. Buyers must sign a confidentiality agreement and demonstrate the financial wherewithal to purchase your business before they are given your Business Profile, and then only with your approval.
There is no true Multiple Listing Service (“MLS”) for businesses like there is for residential home sales. While businesses are kept confidential by the lack of an MLS system, all too often they are kept secret from potential buyers because the listing brokerage or M&A firm does not want to share its commission with a co-broker. In VR’s office in Milford, CT our focus is completely on a successful, expeditious closing. We work closely with other offices within the VR network and we have close relations with a number of high-quality M&A firms which we draw on in support of your transaction as warranted.