Preparing to Sell Your Business
At VR we are acutely aware of what it takes to sell a business.
Preparing the seller and aiding the seller in preparing the business to achieve the maximum gain from the sale are two important roles of the professional intermediary. Owners sell their businesses for reasons stemming from retirement, partnership disputes, personal relocation, family concerns, the desire for change, illness or to enter another business venture. Knowing the reason for the divestiture aids your VR professional in structuring the most advantageous transaction. To further help you maximize the benefit of the sale, VR turns to its professional alliances to help you seek the appropriate tax strategy, succession plan or investment strategy.
VR has identified specifics needed in order to aid a successful transaction:
- Provable books and records
Buyers want proof of sales and profits the business has attained in the past.
- A reasonable price and terms
Educated buyers only consider competitively priced businesses.
- Assets being sold
Prepare a complete list of assets including furniture, fixtures and equipment.
- Attractive lease
Know the terms of assignment or of a new lease.
- Best possible appearance
Have the business premises neat, clean and in good repair.
- Value the business properly
Have a valuation on the business prepared that creates a document that proves value to the buyer and shows the business to be competitively priced.
- Covenant not to compete
Offer terms of non-competition within an appropriate distance and for a reasonable period of time.
- Reason for sale
Buyers want to understand the reason for sale and be comfortable that there is not undisclosed information that could negatively affect their investment in the future.
- Time is of the essence
Be prepared to move forward when a qualified buyer shows interest in the business.
- No surprises!
Adverse situations such as landlord problems, outstanding loans, tax arrears, unfavorable equipment leases and even non-compliance with zoning, health or other regulations can be overcome if known by your professional VR intermediary.
Please contact us for more information.