- 1. Selling Your Business Jeff Goldblatt Business Intermediary
VR Business Brokers
2. Presentation Outline
- Business Intermediary Defined
- VR McKinney Overview & Core Competencies
- 12 Advantages Of The VR Sales Process
3. Presentation Outline
- Business Intermediary Defined
- VR McKinney Overview & Core Competencies
- 12 Advantages Of The VR Sales Process
4. Small Business Overview
- There are close to 25M small businesses currently operating in
the US.
- 78% of small businesses have revenues less than $100K & 77%
have no employees.
- With the first wave of the baby boomer generation nearing
retirement, there are more businesses for sale than ever
before.
- The process of selling a small business and expediting its sale
is a complex and time consuming process.
- Utilizing a Business Broker can maximize the value of the
business and shorten the sales cycle
5. Small Business Categories 6. Small Business Composition 7.
Presentation Outline
- Business Intermediary Defined
- VR McKinney Overview & Core Competencies
- 12 Advantages Of The VR Sales Process
8. Business Broker Defined 9. Why Hire A Business
Intermediary
- The reasons above accounted for 90% of the total responses
10. Presentation Outline
- Business Intermediary Defined
- VR McKinney Overview & Core Competencies
- 12 Advantages Of The VR Sales Process
11. VR Business Brokers
- VR has 30 years of successful business sales through valued
representation
- VR has sold more independent businesses worldwide than any
other firm.
- VR has the most creative & comprehensive marketing.
- VR prides itself in providing the same level of service and
professionalism to each and every client no matter the size of
their enterprise, and is the driving force of its profession.
12. Presentation Outline
- Business Intermediary Defined
- VR McKinney Overview & Core Competencies
- 12 Advantages Of The VR Sales Process
13. VR Business Brokers McKinney, TX
- Supported by the history, expertise and resources of the
international VR Corporation.
- Two decades of experience working with small businesses.
- Specializing in selling small privately held businesses in
various industries.
- Extensive experience in selling independently owned franchised
businesses.
- Result driven, professional representation with confidentiality
maintained through out the selling cycle.
14. Core Competencies VR McKinney
- Expertise at maximizing the value of the business.
- Expertise at marketing the business.
- Effective at attracting qualified buyers and maintaining
confidentiality.
- Expertise at providing counsel during negotiations.
- Expertise on how to financially structure the sale.
- 100% committed to the sales process allowing the owners of the
business to remain focused on running their business.
15. Presentation Outline
- Business Intermediary Defined
- VR McKinney Overview & Core Competencies
- 12 Advantages Of The VR Sales Process
16. Selling Cycle
- Marketing of VR Business Broker Services
- Initial Meeting With Seller Exploratory
- Industry & Location Research
- Information Supply For Valuation Review
- Valuation & Price Analysis
- Business Profile Development The Facts
- Interview & Qualify Buyers
17. Selling Cycle
18. Length Of Time It Takes To Sell A Business?
- BizComps reported an average time from listing is 187 days with
a median of 147 days
19. Presentation Outline
- Business Intermediary Defined
- VR McKinney Overview & Core Competencies
- 12 Advantages Of The VR Sales Process
20. 12 Advantages To The VR Sales Process 21. 12 Advantages To
The VR Sales Process
- 1. EXPOSURE- The key in selling a business is showing it to the
right person.A larger number of qualified buyers results in a
higher price for your business.Because of theVR Network dominancein
the marketplace, we have hundreds of buyers calling us and a
backlog of thousands of prospects searching for businesses.
- 2. ADVERTISING/MARKETING-We know how, when and where to
advertise your business in order to attract the right kinds of
buyers.We pay for the advertising (no cost to you), including your
ad on our websitewww.vrmckinney.comand our corporate website
atwww.vrbusinessbrokers.com .In addition to these two web sites, we
advertise on a variety of additional sites giving overall exposure
to over 125 different sites.We also advertise in newspapers, trade
magazines and direct mail, as appropriate for each individual
listing.
22. 12 Advantages To The VR Sales Process
- 3. CONFIDENTIALITY- One thing that you can be assured of is the
sale of your business will be handled confidentially.If your
employees, competitors, customers or suppliers find out you are
selling, your business could be damaged.We have developed a
successful strategy to protect your confidentiality.We never
disclose the name or location of your business on the telephone.We
will not work with a buyer until they have been qualified and have
signed a non-disclosure/confidentiality agreement.We never send
buyers out to your business unescorted.We never put the name of
your business in a multiple listing service for everyone to see.We
accommodate your needs with after hours meetings if
necessary.Everything we do is designed to protect your business and
your confidentiality.
23. 12 Advantages To The VR Sales Process
- 4. TIME- It takes a lot of time sifting through all of the
inquiries and finding a good buyer.We do that for you so you can
spend your time running your business.If you did find an interested
buyer on your own, you would spend a tremendous amount of time
showing them your records and operation.We allow you to protect
your business' value by spending full time running it.
- 5. SYNERGISM- Advertising alone doesn't sell businesses.You
need experienced business brokers to get people interested in your
business. About 1% of buyers buy the business they call on and less
than 30% buy even the type of business they called on.We get a good
cross section of buyers and then conduct in-depth interviews to
determine their qualifications.The money you would have to spend in
advertising to attract just the right buyer for your business would
be significant.
24. 12 Advantages To The VR Sales Process
- 6. PROVEN RESULTS-VR has sold more businesses in the world than
anyone.No one else can compare with VR's experienced network of
professionally trained associates.Because of our experience, we
have the knowledge to anticipate and solve many problems before
they ever arise.
- 7. FOLLOW UP-We will follow up with a buyer after they have
seen your business, pointing out the benefits of making an offer.We
will report buyer's reactions to keep you posted on how your
business compares with others on the market.Our follow-up after an
offer is signed includes setting up due diligence, assisting in
arranging the financing, removing contingencies, engaging legal
counsel,etc., to ensure a higher probability of the transaction
closing in a timely manner.
25. 12 Advantages To The VR Sales Process
- 8. NEGOTIATING POWER- We pursue buyers without damaging your
negotiating position.Every time you contact a buyer yourself, it
weakens your negotiating power.As an intermediary, we can identify
the buyer and encourage him to make a decision, without implying in
that you are anxious to sell.All of our associates are experienced
negotiators.Even if you are a good negotiator, it really helps to
have an intermediary between you and the buyer to preserve your
good relations.
- 9. RISK FREE- We research your business and help get it ready
for sale.This includes advising you on pricing, preparing a
marketing package, advertising your business, interviewing buyers,
negotiating on your behalf and doing everything necessary for a
smooth sale.We do all this withno feeat all unless a buyer is found
at the price and terms you agree upon.
26. 12 Advantages To The VR Sales Process
- 10. PRICING- Our exclusive database of businesses sold
nationwide by VR offices gives us extensive statistics to assist in
pricing a business.We know what buyers look for and what they are
willing to pay.We make sure you don't overprice and scare off good
buyers or under price and leave money on the table.We use our
database and expertise to convince buyers that your asking price is
fair.
27. 12 Advantages To The VR Sales Process
- 11. STRUCTURING/OFFERS- We know how to structure transactions
to minimize the chance of a problem.We use our experience from
thousands of sales to develop terms that work.We prepare the offer
using the appropriate documents and clauses.The offer, accompanied
by an earnest money deposit and information about the buyer, will
be explained to you.We will counsel you on your options of
accepting, countering or rejecting the offer and on what has to be
completed before closing can take place.We will coordinate with all
parties to keep the process moving to a closing in a timely
manner.
- 12. CLOSING- We know capable, qualified attorneys that can
safely handle the details of the closing for you at a reasonable
fee.We will attend the closing with you as well.
28. Presentation Outline
- Business Intermediary Defined
- VR McKinney Overview & Core Competencies
- 12 Advantages Of The VR Sales Process
29. Facts & Figures
- All cash transactions are rare and mainly occur with businesses
that sell for $100K.
- On average, a seller who accepts an all cash transaction
receives 70% of the asking price.
- Sellers willing to accept financing terms receive 86% of the
asking price.
- Close to 40% of the businesses sold are in the food &
beverage category. Another 30% of the businesses sold are service
related.
30. Facts & Figures
- Small businesses are usually financed over 5 to 10 year period.
Debt service should not exceed 25 to 30% of the annual cash
flow.
- BizComp Database Small Business Sales Data
- The selling price as a multiple of gross sales is:
- The selling price as a multiple of Sellers Discretionary Cash
Flow(SDC) is:
31. Facts & Figures
- 80% ofnewbusinesses fail in the first three years. Buying an
established business can provide an established customer base &
cash flow.
- Often, the seller of a business will provide training which
increases the odds for success.
32. Selling Your Business