VR Business Brokers Blog

VR Mergers & Acquisitions and Cross Border Associates Form Exclusive Global Alliance to Maximize Exposure of International Business Intermediary Services

Wed, 04 Aug 2021 11:02:00 EST

VR Mergers & Acquisitions (“VR”) headquartered in the United States and, Cross Border Associates (“CBA”) based in Germany announced an exclusive global alliance that will offer comprehensive solutions to help both organizations scale and optimize critical confidential services for the valuation, preparation, acquisition, financing, divestiture, and consulting to clients around the world. Combined VR and CBA have over 500 advisors offering professional Mergers & Acquisitions services in more than 100 countries, making it the largest such relationship in the world....

What Business Owners Should Know About Commercial Leases

Mon, 29 Jun 2020 05:15:00 EST

Most business buyers are first time buyers, and there’s a lot to learn about running a business. The fundamental rule of business is to make more than you spend, and the largest fixed cost of many businesses is often the rent. Most first time buyers have never had a commercial lease either, so there’s more to learn here… Today we’ll explore some important aspects of a commercial lease, and how it could affect both the buyer and the seller of the business. Fixed vs Percentage Leases You might think your lease will be the same every month, and this is the case with most leases. This is called a gross lease, the price is fixed....

Is a Gas Station a Good Business to Buy with No Experience?

Tue, 25 Feb 2020 10:34:00 EST

Currently, gas stations and their corresponding convenience stores are some of the most profitable businesses in the United States. Across the country, there are over 100,000 gas station/convenience stores which bring a cumulative of over $400 billion revenue each year. Since the country literally runs on gas where people have to commute to different places and goods also have to be ferried to different states, the gas station business is one whose future is quite certain. Below are some reasons for the popularity of gas stations as investment options. Why gas stations are a popular investment Gasoline sales in the United States are on a constant increase....

Important Elements a Buyer Needs to Consider in a Business Sale

Tue, 14 Jan 2020 12:16:00 EST

JoAnn Lombardi VR President Experienced entrepreneurs who have bought a business before will have an advantage over a business owner who is experiencing selling their business for the first time. That being said, most buyers have a very difficult task because of the due diligence portion of the transaction is typically an area that they have no prior experience with performing. The facts have to be uncovered through a comprehensive and thorough investigation. At VR, we will assist you in identifying items that should be scrutinized carefully....

Why To Sell Your Business After Your Best Year Ever

Fri, 27 Dec 2019 11:52:00 EST

Business owners come to me to sell their businesses. I’m a VR Business Broker serving the North Carolina Triangle Market so owners observe the exits I help other owners achieve and ask me about how to achieve their own. Some of these owners I can help; they have a transferable business producing significant cash flow. Others I can’t. They may have had a great business, but now they are trending downwards. Unfortunately for many of these owners, they may have more of a problem than an opportunity. In this post I will discuss what many business owners may never think of: selling a business after the best year ever. But first a quick story....

What Are the Costs Associated with Buying a Bar?

Tue, 26 Nov 2019 08:58:00 EST

Buying a bar is a dream that has crossed the mind of many would-be entrepreneurs. Finding the right bar for you and for the market can be tricky, though and, once you have found the ideal bar, you will want to move fast to put down the money and make sure you don’t lose it. You will need to be prepared in advance, though, if you are going to be able to do this. In order to get you as prepared as possible, we give you a breakdown of all the costs involved so that you won’t get caught out at the last minute. Giving yourself ample time to plan your finances is the best way to make sure that you can afford the bar that you decide to buy and turn it into a success....

4 Mistakes to Avoid When Buying a Restaurant

Wed, 21 Aug 2019 11:27:00 EST

When you’re on the cusp of buying a restaurant, it can be an exciting time. And you’d hardly qualify as a would-be restaurateur if your head wasn’t full of food trends, recipes, presentation, cool interiors and more. But there’s a range of less-motivating tasks you’ll also need to nail down if you want to realize your dream purchase anytime soon. It’s a list of items whose importance to your future business prospects can easily be underestimated when your head is spinning and you’re full-on anticipating that moment when you can celebrate your achievement. So, take a moment to check out this list of mistakes to avoid....

Thinking of Selling Your Motel? Here's How to Know it's the Right Time

Thu, 23 May 2019 04:10:00 EST

Are you a motel owner who’s planning to sell your business soon and capitalize on your previous efforts? Planning is of the essence; by clearly anticipating all obstacles, you’ll be able to work through them effectively. If you’ve been running a motel for a while, you’re probably no stranger to this logic of anticipating problems and finding solutions in advance. In fact, that is probably the reason why you’re reading this article right now. Luckily, you’ll find the gist of what you need to do outlined in the sections below....

Attorney Selection for Business Deals

Tue, 23 Apr 2019 11:03:00 EST

As a business broker I answer a lot of questions about how to sell a business. One of my FAQs that I share with all business owners planning to sell is call the “Do We Use My Guy Or Yours?” While the “guy” could be a “gal,” the question is all about attorney selection. The point of that FAQ is that sellers must have legal representation when selling a business, whether it’s someone they already know or someone I’m going to recommend. Here are some considerations when picking the right advisor for legal council when selling a business....

Compromising and Countering

Thu, 11 Apr 2019 10:56:00 EST

Peter King VR CEO VR Shows How to Negotiate a Business Sale If you've never purchased a business before, negotiating is oneof the most challenging aspects of the transaction. What canhappen in many cases is that the buyer will spend more for thebusiness than originally intended and the seller receives lessthan planned. When you first consult with VR Business Brokers, we will instructyou on how the negotiation process works, what to expect fromthe other party and how you can be most effective. With ourdecades of experience and innovative tools at our disposal, wewill ensure that you will be informed and well versed in how tonegotiate....

Changing the Approach

Thu, 14 Mar 2019 08:55:00 EST

JoAnn Lombardi VR President How Unlimited Choices Have Given Way to NewMarketing Since the beginning of the 20th century, advertising drove oureconomy in the form of a pre-packaged, one-way story.Today, it's a different story. We've gone from three channelsto 500 and from no web pages to a billion web pages. Thechoices that consumers have today are astronomical. Thereare more than 100 brands of nationally-advertised bottledwater. Starbucks offers 19,000 different ways to order abeverage. With all the options available to the consumer, theshift of power cannot be understated....

Choosing the Right Business for You as a Buyer

Thu, 21 Feb 2019 11:28:00 EST

Peter King VR CEO When you are looking to buy a business, it is important to findthe right business first before worrying about the right price.Never base your search simply on finding a good deal becauseyou will find yourself ultimately in a place that you don't want tobe. The price must be considered secondary to your personalpreferences relating to how you want to spend your time andenergy. Remember that you will be spending between 40 and80 hours a week at the business you choose to buy....

5 Mistakes to Avoid When Buying a Restaurant

Thu, 14 Feb 2019 10:56:00 EST

Buying a restaurant is an exciting investment. Finding the right one can be a process taken over by passion. This can cause you to jump into a purchase too quickly. In this article, we discuss some of the mistakes that you could make and how to avoid them! Because, running a successful restaurant will mean buying the right one and avoiding any unwanted surprises! 1. Forgetting to check the lease terms Most restaurants that you buy will be leasing the premises from which they operate. You will, therefore, be taking over that lease. The location of a restaurant is a vital part of its success so this is a task that shouldn’t be taken lightly....

Selling Your Business?

Thu, 07 Feb 2019 10:59:00 EST

JoAnn Lombardi VR President Learn to Think Like a Buyer You’ve built a great business with love and care. It has grown larger than you’d ever imagined,and generates a nice profit that has allowed you and your family to live comfortably. Nowyou’re ready to sell. You assume there’s a buyer out there who will pay you a fair price andthen nurture the company with the same attention you have. What’s more, selling the businessis a major part of your retirement plan.Needless to say, buyers look at businesses differently than sellers....

The Stakeholders In Successful Deals

Mon, 04 Feb 2019 04:18:00 EST

It takes a village to raise a child, and it takes a team to close a deal. Going at it alone can be a challenge, as business deals have multiple, opposing stakeholders on both sides. Here’s a roster of some of the major players in a business deal assuming you are the seller of a successful small business: Your Deal Making Team: You : You are the most important element in the deal. You have created a small business that has created cash flow and job opportunities for your employees. Knowing what success looks like for you after the deal is closed is critical as it will shape every decision....

Every Business is a Risky Business

Mon, 21 Jan 2019 09:41:00 EST

Peter King VR CEO Every business faces risks, but some companies are riskierthan others. Assessing a company’s risk is an important partof estimating its value. Risk and value are inversely related.That is, the higher a company’s risk, the lower its value. Risk is a function of a company’s external threats and internalweaknesses, but these forces only tell part of the story. Onthe flip side, a business’s strengths and opportunitiesminimize risk and, therefore, build value. When valuators focus exclusively on one side of the story,their conclusions are likely to be skewed....

Facing the Marketspace

Tue, 08 Jan 2019 11:10:00 EST

JoAnn Lombardi VR President Since the beginning of the 20th century, advertising drove oureconomy in the form of a pre-packaged, one-way story.Today, it's a different story. We've gone from three channelsto 500, from no web pages to a billion web pages. Thechoices that consumers have today are astronomical. Thereare more than 100 brands of nationally-advertised bottledwater. Starbucks offers 19,000 different ways to order abeverage. With all the options available to the consumer, theshift of power cannot be understated. The old way of selling on the street corner to anyone that willhear is over....

The Advantages of Self-Educating Whether Buying or Selling

Wed, 19 Dec 2018 04:40:00 EST

Peter King VR CEO As any VR business intermediary will tell you, buying abusiness gives you a greater chance of success than startingone from scratch. 80% of new businesses fail in the first threeyears due to factors such as poor location, low product quality,under-capitalization and lack of management skills. Buying anestablished business will provide you with a stable location andan 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....

Normalized Earnings Tell You How Profitable a Company Really Is

Thu, 13 Dec 2018 10:45:00 EST

JoAnn Lombardi VR President Normalizing earnings can provide insight into a company’shistory and future. Performing this step is key in valuing abusiness, but it’s also difficult work that involves more thanmerely reading the company’s financial statements.Normalizing earnings require detailed analysis as well as anunderstanding of the company’s current and future operations.Once you have that knowledge at your disposal, however, youcan begin to see the true picture. Adjustments to normalize earnings typically fall into threecategories, economic, discretionary and nonrecurring....

Why an Exit Plan is Critical When the Time Comes to Sell

Wed, 05 Dec 2018 02:56:00 EST

Peter King VR CEO Every business owner should have an exit plan in place. If youcurrently own a business, you know as every other successfulentrepreneur knows that you won’t be doing this forever. Youwant the value of the business to stay high so you can attractqualified buyers to take over ownership and expand wheneveryou 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 yourbusiness for the price you desire. Understanding an Exit Plan An exit plan is a series of continually evolving and interrelatedplans to help ensure your business will continue to sustain andgrow....

Follow the Necessary Steps to a Successful Business Sale

Mon, 26 Nov 2018 10:23:00 EST

JoAnn Lombardi VR President Most business owners, who are looking to sell, make the mistakeof not preparing early enough. This can result in not receiving themaximum dollar amount for your business transaction.The selling process should start when you buy your business. Youshould know the return that you are receiving on your investmentso when the time comes to sell you will not leave any money onthe table. In order to consummate a successful sale with aqualified buyer, each VR business intermediary has been trainedto help you take the necessary steps. Most business ownersshould be preparing to sell long before they make the decision to move forward....

How Seller Financing Can help you Find a Qualified Buyer for Your Business

Fri, 16 Nov 2018 09:33:00 EST

Peter King VR CEO When you are exploring the option of selling your business, youmay want to offer seller financing in order to attract a largerbuyer pool, which, in turn, will generate a higher selling price. AtVR, we strongly recommend using this route to help sell yourbusiness. Whether you've sold a business before or not, VR haseach owner consider how much of the price you would bewilling 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....

Is Becoming a Business Owner as Hard as People Think?

Tue, 13 Nov 2018 11:01:00 EST

Running your own business is a common dream shared by many. Many dreamers dismiss the idea immediately however, telling themselves it’s sure to be an uphill struggle. In reality, while taking responsibility for a new enterprise may be tough at times, there are some myths which distort the true picture. So, to help weigh up the options, let’s separate the fact from the fiction about business ownership. Were you born for it? If becoming an entrepreneur was always a walk in the park, then we would all be business owners. What can make things unnecessarily difficult is the often-expressed idea that you’re either a ‘born entrepreneur’, or you’re not....

Poor Pricing Strategy: Seeking Suckers

Tue, 06 Nov 2018 10:21:00 EST

I help sellers go to market all the time, typically after we walk through a “Broker’s Opinion of Value,” but sometimes sellers have their own price in mind. Going With The Gut When sellers come to me and they have a price set I like to ask them how they got to their price. Normally it’s a combination of what they invested in their business, what they need to move on, and what they “feel” is right.When it was time to sell my business a decade ago, I came from a similar mentality. I didn’t know what it was worth so I relied in part on a gut feeling to get to my price....

Selling Your Business? Learn to Think Like a Buyer

Thu, 01 Nov 2018 11:46:00 EST

JoAnn Lombardi VR President You’ve built a great business with love and care. It has grownlarger than you’d ever imagined. It generates a nice profit. Asa result, this has allowed you and your family to livecomfortably. Now, you’re ready to sell. You assume there’s a buyer outthere. You want someone to pay you a fair price and nurturethe company with the same attention you have. Mostimportantly, selling the business is a major part of yourretirement plan. Needless to say, buyers look at businesses differently than sellers....

What Buyers Look For In A Business Opportunity

Wed, 24 Oct 2018 09:58:00 EST

Peter King VR CEO You have built a great business with love and care. It has grownlarger than you'd ever imagined, and generates a nice profit thathas allowed you and your family to live comfortably. Now you'reready to sell. You assume there's a buyer out there who will payyou a fair price and then nurture the company with the sameattention you have. What's more, selling the business is a majorpart of your retirement plan. Needless to say, buyers look at businesses differently thansellers. So to achieve the outcome you want, it's important tothink like buyers and understand how they evaluate a business....

Facing the Marketspace

Thu, 18 Oct 2018 10:52:00 EST

Separating Yourself From The Market

Mon, 01 Oct 2018 03:29:00 EST

Peter King VR CEO Thestrategyisfundamentalincreatingsignificantvalueinyourbusinessandleadstosustainedgrowthandreturns. Tocreateasuccessfulstrategy,youmustensurethatithasthefollowing: •Uniqueness; •Abilitytocreatenewmarkets; •Provideselementsthatinspireexcitementandintrigue; •Focusonspecifiedmarkets; •Employee-drivenvalue. Uniqueness Giventhatthemarketisverycompetitive,youdon’twanttopresentsomanyoptionsthatwilloverwhelmprospectivecustomers.Havingastrategythatisuniqueandinnovativewillplaceyouaheadofthepack....

Walking the Road to the American Dream

Mon, 24 Sep 2018 04:54:00 EST

JoAnn Lombardi VR President People want to be their own boss. By far, this is the biggestreason people want to go into business ownership. Some maybe frustrated in their current job or position. Others may notenjoy their current boss or employer, while others feel thattheir abilities are not being used properly or efficiently. Surprisingly, money is not the first reason; not because it isn’timportant, but it may not be the primary issue. Once a persondecides to go into business for him or herself, he or she has toexplore the options. Starting a business is one option, butthere is a lot of risk for failure....

How to Attract the Attention of a Seller

Tue, 07 Aug 2018 02:49:00 EST

BusinessesForSale.com When a seller puts their business on the market, they are usually prepared for a lot of time-wasters. Most sellers try to reserve their energy for buyer enquiries that they think are serious. This means that, if you are one of those buyers, you need to stand out from the crowd.Your enquiry needs to give the seller the right impression from the get go. Make sure that you really are serious Before you enquire about a business, be certain that you have the skills and experience to match it. A seller will consider this when they are choosing to whom they are going to reply....

Selling the Family Company

Thu, 02 Aug 2018 12:25:00 EST

Peter King VR CEO It may seem like just yesterday, but in reality its many years ago and you started your company. At that time the goals for you and/or your family were closely aligned with that of your business. Time has marched on, the family has grown up, homes have been paid for, and you are once again considering what the future holds. But, rather than thinking about company growth, you are starting to consider if this is the time to sell.There are numerous reasons for selling your business. Children who you thought would once take over the business have graciously declined....

What I Wish I Knew When I Started My Business

Wed, 18 Jul 2018 05:03:00 EST

Since I’ve been a business broker and interviewed countless business owners, seen their options for exit and been a part of their exit planning, I’ve thought back on what I wish I had known when I started my small business in 2003. Here are three takeaways that I would have acted upon if i had the experiences and insight then that I have now… The two ways to make money with a small business You can make it along the way, or you can make it at the end. Businesses that are run to support a lifestyle are different than businesses that are run to sell for top dollar....

How to Attract Serious Buyers

Tue, 03 Jul 2018 03:08:00 EST

BusinessesForSale.com When you are trying to sell a business, your main goal will be trying to attract the people that are serious about buying so that you don’t your time with people that are not. To do this, you need to be serious about selling and there are a few things to do to make sure that you are. Preparation Preparing your business for sale is an important part of making sure that you get the right buyer. You will need to make sure that you have a clear idea of what that serious buyer will look like. Put yourself in the buyer’s shoes....

Where Your Company Fits In

Thu, 28 Jun 2018 11:08:00 EST

Peter King VR CEO Knowing where your company fits into the world of business is a must if you want to understand the dynamics of selling it. The rules that govern the sale of public companies like Ford, Microsoft, and General Electric are radically different from the rules that control the sale of closely held, owner operated, founder owned companies. In the VR Business Brokers / VR Mergers & Acquisitions arena of business sales there are two major categories to which we offer Valued Representation: Small and Mid-Market. By VR definition of these two sectors of the market represent over 95% of the businesses in the United States....

Federal Antitrust Laws

Mon, 18 Jun 2018 10:23:00 EST

Peter King VR CEO I got asked not long ago for my opinion on Federal Antitrust Laws. I had to preface my answer that I am not an attorney, but my belief is that the central concern of federal government policy is with those acquisitions that increase the danger that companies in a particular market or sector will have “market power” – the power to raise prices or limit production free from the constraints of competition. This danger increases when a market is dominated by a few large companies with substantial market share....

Why Bad Deals Happen to Good People

Tue, 12 Jun 2018 01:56:00 EST

Peter King VR CEO No one ever plans to be involved in a bad deal. Yet all too many entrepreneurs and executives enter into buying a business they later regret. This can be true on an individual buying a family business or a company looking to expand through acquisition. There are generally the same mistakes made over and over; lack of planning; unrealistic timeline to close; understanding and addressing integration post closing; and the worst is when the benefits from purchase or the expected synergies from the purchase just never materialize....

Selling your Business? Here’s How to Remove Yourself

Wed, 28 Feb 2018 02:20:00 EST

BusinessesForSale.com Building a business and maintaining it takes dedication. Understandably, the relationship between owner and company can become so close that the two are fused in some respects, which can be problematic when it comes to selling it. To clinch a successful deal and allow a business to thrive under new ownership, it’s important to separate yourself from the day-to-day running of it....

How Not to Deceive Potential Buyers

Thu, 30 Nov 2017 09:17:00 EST

BusinessesForSale.com When you’ve made the decision to sell your business ideally both the premises and your books need to be on point. If the business does not appear to be looked after, the buyer can suspect some concealment or deception. Along with this you’ll need to be careful about your responses to any questions you are asked. There are four questions all serious buyers will ask you during their due diligence, and you should make sure that your answers don’t scare them off. If you are able to answer these questions, then your business should be in good stead for a smooth sale....

5 Essential Tips to Master the Art of Selling your Business

Wed, 30 Aug 2017 02:33:00 EST

BusinessesForSale.com Have you started to contemplate theeventual sale of your business? Never sold a business before?Here are five essential tips to help youprepare the business for sale, find a buyer and achieve a deal on price andterms that you’re happy with. 1. Value the business Get an accurate valuation ofyour business from a trusted source. Valuing a small business is much more complex than valuing a house as there are so manyvariables – encompassing not just the value of your premises but also that ofyour revenues, stock, brand, employees and more besides....

How To Buy a Business With Family – And Keep Your Sanity!

Tue, 20 Jun 2017 01:34:00 EST

BusinessesForSale.com Buying a business and runningit as a family-owned enterprise remains an entrepreneurial dream for a greatmany people. So much so that America relies on family businesses to generate 60percent of its current employment. It’s easy to see the appeal:the thought of choosing your own direction while working alongside relatives togenerate an income that will support you all may seem like the perfectscenario.But while there are manyattractive aspects to buying a business with family members, there are extraobstacles and considerations to address if you are to make a success of yourshared venture....

Entering Business Ownership

Mon, 24 Apr 2017 02:15:00 EST

When Is The Best Time To Enter Business Ownership? More and better businesses opportunities are available now than we have seen in history...if you know how and where to find them. This may be your best opportunity to take advantage of gaining the years of hard work and investment of someone else. The current economy is the most favorable we have seen in years to make your move! At some point the owner of every business and professional practice will exit his/her business through a sale or other ownership change, which may now be available to you....

Can Your Business Broker Answer These 7 Questions To Your Satisfaction?

Wed, 01 Mar 2017 02:09:00 EST

BusinessesForSale.com The only thing worse than no professional support is the wrong professional support. Ask these questions to secure the right broker. Selling a business on yourown to save money is often a false economy, but hiring the wrong business broker is arguably even worse. If you are to avoidappointing a broker who is unscrupulous or just plain incompetent, then your vettingand selection process must be as rigorous a possible. Here are seven importantquestions you should always ask before engaging a broker to represent yourinterests throughout the sale. 1....

VR Business Brokers Featured In Franchising Today

Wed, 11 Jan 2017 03:19:00 EST

JoAnn Lombardi VR President Recently, VR Business Brokers / Mergers and Acquisitions was featured in "Franchising Today - The leading source for today's franchising executives, owners, investors, and entrepreneurs." Below are some excerpts from the article. VR doesn’t believe in expanding just to expand; it prides itself and is motivated to create a boutique firm atmosphere rather than a mass-produced franchise factory. “We want to create value on every level,” King explains. “To choose VR, you have to have a calling to help the entrepreneur....

Small Business or Franchise? How to Decide

Mon, 12 Dec 2016 10:11:00 EST

BusinessesForSale.com Having decided you want to be your own boss, next you have to choose not just your sector but whether you start a business from scratch, buy an established independent business or buy a franchise. Each option has its own merits and drawbacks and which one suits you depends on your personal attributes and what you want from the venture. If you want a fully functioning business that makes money quickly then you almost certainly need to buy a business – franchised or otherwise. The franchise option Taking on a franchise means you follow a tried-and-tested business format....

Do I Need A License To Become A Business Broker?

Wed, 26 Oct 2016 10:41:00 EST

Peter King VR CEO We often get the question from those wishing to become a business broker: Do I need to have a license? And the answer is yes and no. First, there is no such thing as a "Business Broker License". However many States and Provinces do require a real estate license to facilitate the selling of a business. Below is a list of States and Provinces that do require a Business Intermediary to obtain a real estate license....

Avoid These Pitfalls When Selling Your Business

Mon, 17 Oct 2016 12:22:00 EST

BusinessesForSale.com From a lack of preparation to proceeding without the help of a business broker, these are some of the most common mistakes made by sellers. Selling a business for a satisfactory return and within your preferred timescale can be a challenging prospect. Attracting buyers requires a focused approach, careful groundwork and realistic expectations. Here are some common pitfalls you should avoid to boost your chances of a successful outcome. Lack of preparation Owners frequently underestimate the time required to prepare for a business sale....

How To Streamline Your Office: A Business Broker's Guide

Wed, 08 Jun 2016 10:53:00 EST

BusinessesForSale.com All business brokers need a back-office function to deliver whatever the business needs at any particular time. This means that some business people invest in more capacity than they actually need, so that their firm is not overrun at peak times. However, working efficiently means cutting away excess resource so that the company can cope with busy periods without overspending in lean times. Streamlining an office is not all about staffing levels, it should be said. There are many approaches to working smarter rather than harder. Let's look at some of the most effective techniques....

Trademark Counterfeiters: The Scourge to What You Build

Mon, 23 May 2016 11:31:00 EST

Peter King VR CEO When you hear the word “Counterfeit”, most people instantlythink of someone printing money and trying to pass it off as the realthing. In the franchise world aCounterfeiter is someone who has taken your registered trademarks and changedthem ever so slightly with the intent to trade off your good will for financialbenefit. Most people who have travelled to a major city or to a localflee market have seen Rolex watches for $25 and Gucci purses for evenless. For luxury brands,counterfeiters erode the status-symbol allure of such goods. Today, brands are striking back withpolice involvement to crack down on such thieves....

2015 VR Business Brokers Awards

Wed, 09 Mar 2016 02:29:00 EST

JoAnn Lombardi VR President Clickoneachimagetoviewandprint....

5 Things You Need to Know When Selling Your Business

Tue, 01 Mar 2016 03:29:00 EST

BusinessesForSale.com Selling your business is never going to be an easy process. It’ll take longer than you expect, and could be more complicated than you anticipate. However, if done correctly, it can set you up financially for the next step in your life – whether that’s retirement, another business venture or something else. Here are five things you need to know to get the best deal possible from the sale of your business. 1. Buyerswantproofnotpotential It’scommonforasellertobeemotionallyattachedtotheirbusiness andfeelsentimentalaboutthesale....

Closely Held Businesses and Compensation Plans

Thu, 11 Feb 2016 12:40:00 EST

Duane Merchant, CFP® Financial Advisor How to ARM Your Key Employees for Success Most business owners would love to have employees who are as passionate about the company as they are. It makes sense: The future of a closely-held or family business depends on how securely its select employees are tied to it. But creating an environment where employees feel like owners doesn’t happen overnight. To ensure the continued success of a business, owners need to ARM – attract, retain and motivate – key employees who can help grow and sustain their business....

Coaching in Business: DIY or Bring in the Professionals?

Thu, 29 Oct 2015 06:00:00 EST

BusinessesForSale.com While some prefer to go it alone, small business owners are increasingly using the services of a coach to help them streamline their day to day operations. Efficiency is an essential attribute to business success but often we forget about the effectiveness of the entrepreneur themselves. Being a business owner who has good planning, organizational skills and consistency from the off is the dream for anyone starting and running their own business. However, in reality this isn’t usually the case as the early days can be a very stressful time for business owners....

It Won’t Happen To Me!

Mon, 19 Oct 2015 12:52:00 EST

Doug Smith Biz Finance Solutions Have you felt the impactof increased regulation on the small business sector? It seems that no matter which business vertical you areinvolved in, some government entity wants to make sure you are carrying outyour business activities in a manner compliant with laws and regulations. Some of these regulationsmake you scratch your head in wonder and some of them make perfect sense. One of the areas that fall into thelatter category of making sense has to do with Data Breach Preparedness andResponse....

Which Retirement Rollover Company Should YOU Use?

Mon, 05 Oct 2015 12:59:00 EST

Doug Smith Biz Finance Solutions Since the passage of ERISAin 1974 (the Employee Retirement Income Security Act), thousands of newbusinesses have been financed by retirement funds without penalties or ataxable distribution. Using theirexisting retirement funds held by a former-employer qualified retirement planor IRA to finance the startup or acquisition of a new business, entrepreneurshave been able to realize their dream of business ownership and at the sametime have bolstered the economy by providing thousands of jobs in the process. These structures are usually referred to as rollovers as business startups (ROBS)....

How to Sell to Millennials

Mon, 28 Sep 2015 12:23:00 EST

BusinessesForSale.com Move over Baby Boomers. The next market businessbrokers should be paying attention to is Millennials, whom are defined as beingbetween ages 18 to 34 in 2015. There are manymisconceptions about this generation, but in reality, Millennials are thefuture business owners of America.The Power of the Millennial GenerationThe numbers arepretty powerful: Each day, more than10,000 people turn 21 Millennials currentlyrepresent 25% of the populationThis year,Millennials are expected to spend $2.45 trillion.By 2018, that numberjumps to $3....

Employment Based Fifth Preference (EB-5 Program) - A Summary

Thu, 10 Sep 2015 08:51:00 EST

Larry Behar Behar Law Group The fifth employment based visa preference category ("EB-5"), created by Congress in 1990, is available to immigrants seeking to enter the United States in order to invest in a new commercial enterprise that will benefit the US economy and create at least 10 full-time jobs. The EB-5 Program is governed by section 203(b)(5) of the immigration Nationality Act (INA). The program annually sets aside 10,000 permanent residency cards (green cards) for immigrants who make a qualified investment through the EB-5 program....

Just How Important Is Location When Choosing a Business

Tue, 18 Aug 2015 11:29:00 EST

BusinessesForSale.com It’s been the mantra of real estate agents forever, and it still rings true when discussing the relative values of any sort of residential or commercial property. But, this focus on location is an even more important factor when that real estate purchase involves starting or taking over a business. Here are three undeniable reasons why placement matters when considering buying a business: 1. Location Determines Cost The spot where your new business is located may be the single biggest factor in the cost of the purchase....

VR Welcomes Our New Office Opening in Kansas City, MO

Wed, 12 Aug 2015 11:37:00 EST

Michael Becker, pictured to the left with his wife Carmen Becker, graduated from Wichita State University in 1990 with a Bachelor of Business Administration with an Emphasis in Marketing. He worked as a Credit Manager with Norwest Financial Corporation(now Wells Fargo) for 2 years. In 1992, Michael started is his own exclusive insurance agency with a Fortune 500 Insurance Company. He was the state agent of the year and won numerous national awards for being in the Top 100 Agents out of 4000 winning numerous incentive trips in building it from scratch into a Million Dollar Premium volume agency....

VR Awards - 2nd Quarter 2015

Fri, 07 Aug 2015 09:51:00 EST

It's awards time! VR's award winners are the champions of our profession. They create a dream and then overcome all barriers to succeed. We are so very proud to announce our red carpet worthy award winners! The VR Awards for the 2nd Quarter of 2015 include Top Producers , Centurion and the Victory Awards....

Should I Buy a Business or a Franchise?

Mon, 13 Jul 2015 02:11:00 EST

BusinessesForSale.com Want to be your own boss but not sure which way to go about it? Here, you can weigh up the pros and cons to see whether buying a franchise or a business would suit you best: Finance FranchiseOne of the positives of buying a franchiseis the increased number of loan options available to you.Brand names and a transparent track recordof cash flow are preferred by banks and other lenders, so choosing a franchise willmake it easier to secure funding. Franchises that have fewer locations may beless attractive to lenders as they have not quite proven the feasibility of thebusiness in all types of environments....

Explore Your Selling Opportunities

Tue, 23 Jun 2015 10:24:00 EST

Michael Langford VR Sacramento, CA I recently met with a business owner who, because of health problems, wants and needs to sell his business. He has a key employee that supervises much of the work that is performed by the company. He offered to sell the business to the employee, and they agreed on a price, with the seller carrying a note for roughly 30% of the price of the business. The employee's only contingency was raising the necessary down payment from family members. As time went by it became clear that the employee was coming up short on the down payment. So the deal fell apart....

5 Ways to Develop Your New Business

Thu, 18 Jun 2015 09:29:00 EST

BusinessesForSale.com It’s not easy to make the leap from small business to big business. Infact, the odds are against small business owners. Research shows that onlyone-tenth of one percent of companies will ever reach $250m in annual revenue.If that’s not big enough foryou, hereare five strategies to build your business. 1. Build your businessthrough goal setting and monitoring. No business stays static, so in order to constantly improve, you need toset goals and hold yourself accountable to them. Have a current year as well asa three-year business plan, measure your progress against those plans and makeadjustments when necessary....

Small Business Owner Advice...Know the Truth Behind Settling on the Court House Steps

Tue, 09 Jun 2015 02:10:00 EST

Peter King VR CEO I am sure most people have heard the term, “Settle on the Court House Steps”. As a consumer of legal fees, or client, most of us have been lead to believe that because of all the hard work an attorney puts into a dispute they have been able to negotiate a last minute resolution with the other party for settlement. The client in most cases is lead to believe that this last minute maneuvering is in their best interests; or you’ve been told that’s why you pay your attorney the big bucks; or that in some way you are victorious in your quest for justice....

Top 5 Business Sectors To Invest In Today

Fri, 29 May 2015 09:55:00 EST

BusinessesForSale.com According to the Global Entrepreneurship Monitor 2014 Report, entrepreneurship rates in the U.S rose to approximately 14 percent last year - a far cry from the recession low of 7.6 percent in 2010. The Bureau of Labour Statistics states that Americans change their approximately job every 5 years, many taking the leap and investing in a business.best sectors to invest in are likely to be influenced by the economic climate, and with the recent recovery and developments in technology; some sectors are looking like promising investments....

Beginners Guide: 4 Ideas on How to Market Your Business for Success

Tue, 26 May 2015 09:40:00 EST

JoAnn Lombardi VR President A business with a plan to succeed is a business that will be geared for longevity and growth. In order for that to come to fruition, a business must first establish a marketing plan and execute accordingly by implementing the targeted strategies. Here are 4 ideas to implement when preparing your business for success. 1. Attend Networking Events. When was the last time you attended a conference, trade show or Chamber event? These events are great for marketing your services while getting your name out there to prospects....

Building Links to Increase Business

Mon, 25 May 2015 02:20:00 EST

James Watt VR - Marketing I have spoken a lot about the importance of creating good, relevant content for your website and/or blog. Great posts can lead to others linking to it, which helps increase your chances of being found. But there are many other ways to generate incoming links to your business' website. Here are 4 tips to gain links, to increase leads, and make your business more profitable: 1. Do something newsworthy in your community. Hosting or sponsoring community events and supporting local causes and charities can get you noticed by your local paper or magazine which can turn into back links from their websites....

9 Point Checklist: How to Attract the Right Buyer

Thu, 21 May 2015 01:45:00 EST

JoAnn Lombardi VR President When considering selling your business, every buyer expects a business of great value as an investment. Depending upon the qualified candidate, it could be an entrepreneur with a specific set of needs that motivates them to invest in an established business or it could be a private equity group that sees the benefit in acquiring a business based on their strategy for future growth....

Are You Qualified To Own A VR Franchise?

Wed, 20 May 2015 10:13:00 EST

Bruce Rockwell VR Charleston, SC Starting or buying a business is a big step for most people and trying to find the right business for your particular skill set can be difficult. Becoming a VR Business Brokerage owner should be evaluated just like any other business you might consider. To be successful at VR you will need to have a clear vision as to what you want to accomplish from a career and financial standpoint. The responsibility of helping someone sell their business or helping someone buy a business can offer great financial rewards if you are successful....

Top 5 Reasons Why Being on Social Media Boosts the Worth of Your Business

Wed, 06 May 2015 01:07:00 EST

Joshua Jones VR - Communications The art of selling your business is simple yet complex, that's why it is best to consult an experienced business broker. With so many emerging technologies, it can be hard to know what to adapt to and how it can benefit your business in the long run. Most of these worries can be eased once given the time to become more educated through research and understanding the importance of online marketing and its power of leveraging social marketing to the masses. We are living in a digital era where people need and want information fast and at their fingertips....

Don’t Always Trust Your Legal Advisors…”Block Billing is an Eye Opener”

Tue, 05 May 2015 09:01:00 EST

Peter King VR CEO In every profession there are ethical and moral representatives, and unfortunately those who taint their own industry. With all the attorney jokes, and off color remarks people make about lawyers here is just one reason they earned it…It is called “Block Billing”.This is a form of invoicing your own law firm uses against you, and trust me they don’t disclose it without a fight. Rather than giving a client an item by item break down of their billable time, the attorney, the billing specialist, and the billing partner, present a laundry list of work done with a combined total for hours....

5 Things to Avoid When Selling Your Business

Thu, 30 Apr 2015 10:07:00 EST

BusinessesForSale.com If you’re considering sellingyour business, congratulations!This could be a great move for you. Or, it might not. It’s definitely a big step,though, and one that requires thought and preparation in order to optimize theoutcome for everyone involved.Unfortunately, many business owners go into the sale of their businesswith unrealistic expectations, or without properly preparing, and they end upmaking costly and frustrating mistakes that can be detrimental to the effort.Here are five specific things toavoid when selling your business: 1. FailingtoplanAseveryoneknows,failingtoplanisactuallyplanningtofail....

Increase Your Business' Value By Marketing Online

Wed, 29 Apr 2015 09:16:00 EST

James Watt VR - Marketing Keeping your online presence can seem overwhelming at times. Things change rather quickly in the virtual world, but keeping up with your marketing practices can mean more business! And more business means your company will be worth more when it is time to sell! Here is a very quick checklist of things you or someone from your team should be doing to ensure you get your share of the online traffic: 1. Have multiple pages on your Website. If you only have a home page and a contact page, that is not enough. Between 5 and 20 pages is a range everyone should be able to hit.2. Ensure your page content is unique....

8 Reasons People Buy a Franchise

Wed, 22 Apr 2015 01:45:00 EST

Larry Lane VR McKinney, TX US FRANCHISING FACTS · Itisestimatedthatfranchisingcreates18millionjobs&generates$2.1trilliontotheeconomyApproximately1outof12businessesintheUSarefranchisesThefranchisingindustryaccountsforapproximately40%ofretailsalesAnewfranchisebusinessopensevery8minutesofeverybusinessdayMostfranchisecompanieshavefewerthan100units Astudybythe USChamberofCommercefoundthat86%offranchisesopenedwithinthelastfiveyearswerestillunderthesameownershipand97%ofthemwerestillopenforbusiness....

Top 5 Reasons To Buy an Established Business

Mon, 20 Apr 2015 02:05:00 EST

Peter King VR CEO While there are many reasons to buy (or not buy) a business; purchasing an established business compared to starting a new business has some advantages. A proven location, products that have a history of selling, employees who already know their jobs, customers who are loyal to your brand, and existing cash flow are a few. These 5 points along with many others are reason enough to consider an existing business over a start up. To search all of VR's business listings, use our advanced business for sale search form....

Do I Need a License to Be a Business Broker?

Tue, 14 Apr 2015 01:45:00 EST

Charles Winn Cox, P.A. VR Boca Raton, FL Good question and not easily answered. A license is merely authorization to do a particular thing inaccordance with the issuing authority's policy, regulation or law. In this case we think of issuingauthority as being a State. To findout if the State requires a license, you can now do some research? Of course you can access the web, andtry to find your answer; but is it correct? You do believe everything you read on the web, right? Let's think about this. Statelicensing is ordinarily regulated by state law. Then this becomes a legal question....

Transitioning from Real Estate Sales to Business Brokerage

Wed, 08 Apr 2015 10:23:00 EST

John Hornblower VR Aspen, CO If you are a real estate agent thinking of becoming a business broker, or to adding business brokerage to your current real estate practice, there are some similarities as well as some critical differences between the two practices to keep in mind. Success in real estate brokerage takes local knowledge of the real estate market and being well connected in the community you serve. People who are interested in buying or selling real estate need to see you as the source of knowledge of what’s for sale, which properties offer good value and which ones are overpriced....

VR Business Brokers | Mergers & Acquisitions Announces Top Ten Year End Award Winners for 2014

Thu, 26 Mar 2015 03:50:00 EST

JoAnn Lombardi VR President VR Business Brokers | Mergers & Acquisitions, a leader in the sale of privately held companies, is pleased to announce the Top Ten Year End Award Winners for 2014. For35years,VRhasrecognizeditsawardwinnersfromaroundtheglobeinthefollowingthreecategories:Offices,OwnersandAssociates.VRawardwinnersrepresenttopperformersfrominsidetheorganizationandthereforetheindustry.Thisyear’stopintermediariesshareadedicationtotheirclient’sbestinterests,apassiontobeacknowledgedasleaders,andadrivetosucceed....

VR Business Brokers | Mergers & Acquisitions Names Eduardo Sosa Branger, Owner of VR in Coral Springs, FL as VR’s Most Valuable Intermediary for 2014

Thu, 19 Mar 2015 01:38:00 EST

Peter King VR CEO VR BusinessBrokers | Mergers & Acquisitions, a leader in the sale of privatelyheld companies, is pleased to announce Eduardo Sosa Branger as the2014 VR Most Valuable Intermediary. Eduardo Sosa Brangerhas been exclusively dedicated to the Business Brokerage Industry since 2003.With more than 10 years of experience in this field, he has been actively involved in over 100 transactions involving the transfer of business ownership.“We’re proud tobestow this prestigious award on Eduardo....

Baby Boomers Are Keeping Business Brokers Busy

Tue, 17 Mar 2015 11:05:00 EST

BusinessesForSale.com Financial forecasters say that the US’ 70,000,000 Baby Boomers are all set to make wavesin the American economy. With a great number of this demographic owningbusinesses and planning to retire, some predict a 'tsunami' of Baby Boomerenterprises will hit the business sales market – though fewer are disposed tooffer predictions about the likely consequences....

VR Business Brokers | Mergers & Acquisitions Inducts Alfredo Gonzalez Amare of VR in Coral Gables, FL to Hall of Fame for 2014

Tue, 10 Mar 2015 02:24:00 EST

JoAnn Lombardi VR President VR Business Brokers | Mergers & Acquisitions, a leader in thesale of privately held companies, ispleased to add Alfredo GonzalezAmare of VR in Coral Gables, FL to the Hall of Fame as 2014 Inductee. Alfredo Gonzalez Amare holds degrees from the University of the Pacific (California), VanderbiltUniversity, the Universidad Central de Venezuela and Universidad CatólicaAndrés Bello in Caracas. He also has a law degree from Universidad Santa Mariain Caracas and is a licensed business broker in the state of Florida....

7 Steps On How To Write An Eye Catching Selling Memorandum

Fri, 13 Feb 2015 08:39:00 EST

JoAnn Lombardi VR President Prepare a Selling Memorandum when marketing a business to sell. The selling memorandum is a written summary which outlines the selling features of the business, highlighting those points which would be of interest to a prospective purchaser. The package acts very much like a brochure on the business. It provides the starting place for discussions and it is the "take away" piece that a buyer can take home after be thoroughly qualified and executing the non-disclosure agreement....

How To Prepare For An Interview With A Qualifying Buyer

Mon, 09 Feb 2015 02:23:00 EST

Peter King VR CEO All phases of business sales stress being prepared in advance, and the Buyer Interview is no exception. Preparing psychologically in advance empowers you with an inner confidence to control the situation, rather than being controlled by the circumstances. You have successfully handled the Ad Call and closed for the interview appointment. The first step is to mark your calendar accordingly. You should allow two hours for the interview and education process. Block out that time frame on your calendar so that nothing can interfere.Arrive early, give yourself an hour or so to prepare, collect your thoughts, and adjust your attitude....

The Art Of Selling.....A Business

Tue, 03 Feb 2015 03:19:00 EST

JoAnn Lombardi VR President As with any profession that involves making important decisions, selling skills are key elements to success in Business Sales. Before examining the technical side of the Business Sales industry, it is important to understand a few elements of the psychology of selling to gain an appreciation of the skills and techniques used in all aspects of our business. Developing and refining these selling skills is an ongoing process which requires training, practice, reading, and patience. A top salesperson will always tell you that at some point in the sale, "I just knew it was the right thing to say....

Managing Big Data as a Small Company: The Challenges

Thu, 29 Jan 2015 01:00:00 EST

BusinessesForSale.com In today's business environment, small companies can be swamped with data of different kinds. Even the most local business is now likely to have some sort of online presence, and this adds a whole new level of useful information to collect and analyze. What is more, the old streams of financial data and customer feedback are still as important as ever. Small companies will face both resource and expertise challenges when considering these issues, and it is important that strategic decisions are made on how to understand data....

2014 Fourth Quarter Awards

Fri, 23 Jan 2015 11:48:00 EST

On behalf of the VR Corporate Office, we would like to congratulate all our Offices on another successful year of business sales, mergers, and acquisitions....

5 Types Of Discretionary Earnings To Be Aware Of Before Selling a Business

Wed, 21 Jan 2015 08:24:00 EST

Peter King VR CEO 1. Owner's Salary Most business owners do pay themselves some salary on the books. The key here is whether there are other members of the family included in the payroll expense, and whether or not these individuals serve a function in the business. (A buyer can only replace one salary, so be careful which salary(s) among the family members you include in DE.)2. Discretionary ExpensesThese are expenses that are not essential to the operation of the business, but are a method of deriving income from a business....

Preparing An Offer Presentation Between The Buyer And The Seller

Fri, 16 Jan 2015 09:20:00 EST

JoAnn Lombardi VR President While writing an offer may seem like the final or ultimate step to the buyer, it is really just the first step in the process. It starts the negotiations process and sets the ground work to determine how flexible a seller might be. If a buyer, writing an offer should be relatively straight forward. The key is to constantly address fears and concerns with a solution. There are very few concerns which cannot be handled with a contingency, a condition, or an adjustment in price and terms. Prepare the Seller Prior to preparing an offer, you should have educated your seller about offers and their presentation....

The ABCs of Business Sales

Thu, 15 Jan 2015 08:58:00 EST

Peter King VR CEO The ABC's of small business sales are the sequence of events, the basic steps, which should be taken to be successful in the business broker industry. These basic steps are outlined below and explained in detail in the subsequent sections of the course. They form the basic backbone of the VR system of sales. The sequence of these steps is very critical. There are no short cuts. Each step should be done completely and thoroughly. It is very difficult to go back and redo a step. Therefore, the first time through, each step must be done correctly....

6 Key Methods In Prospect Building To Gain Business Leads

Mon, 12 Jan 2015 12:25:00 EST

JoAnn Lombardi VR President A Business Intermediary will come in contact with the business sellers and build a listing portfolio by using six key methods of prospecting: · Personal Networking Telephone Call Direct Mail For Sale By Owner (FSBO) Referral Centers of Influence (attorneys, accountants etc.)It has been proven that the most effective approach to prospecting is to use a combination of all sixprimarymethods.Theimportantthingtorememberwhenusingthecombinationisthetimingandthefollow-upaspectsoftheprocess.Prospectingaloneisnotenough;propertimingandfrequentfollow-upwillproduceresults.Thisisnotaonecallbusiness....

How To Deliver a Business Listing Presentation To a Seller

Wed, 07 Jan 2015 07:34:00 EST

Peter King VR CEO Your effectiveness as a listing agent depends on your ability to make a good listing presentation to a potential seller. Professional business intermediaries understand that the key is to determine the seller's true motivation for selling. You must discover how far along the seller is in the "thinking about it" stage as well as what he plans on doing after the business is sold. The key question is: "What will you do after you sell?" The three stages of selling (know me, like me, trust me) and rapport building must take place during the initial get acquainted meeting with the seller....

10 Key Methods To Follow For Proper Business Etiquette Over The Phone

Wed, 31 Dec 2014 11:10:00 EST

JoAnn Lombardi VR President Canvassing by telephone offers a secondary method of reaching business owners. Although nothing replaces the impact and rapport of a face to face meeting, a phone call does have a number of advantages. The primary advantage is efficiency for your time management. Obviously, you can reach more people by calling than by personal visit. To get the most out of the telephone canvassing, note these key principles. The 10 key principles pertain in general to all telephone calls: negotiating a lease, calling on sellers, solving a banking problem, etc. 1....

How To Understand a Buyer's or Seller's Personality Type

Mon, 22 Dec 2014 09:43:00 EST

Peter King VR CEO The key to good observation and listening skills is to build a better picture of how the seller or buyer is likely to react. You want to anticipate reactions so that you can solve problems before they become an issue. To build this picture, it is helpful to use a model to describe general personality types. Although all individuals are unique, most can be generally characterized by one of four personality types: ● Analytical ● Driver● Amiable ● ExpressiveThere are certain traits and styles of action which each of these personality types displays....

5 Ways VR Business Brokers Educate Sellers

Wed, 17 Dec 2014 12:03:00 EST

JoAnn Lombardi VR President As a professional business broker, it is important to insert yourself as the expert on how to sell or buy a business among other needs based on the potential client. Before a seller lists their business for sale there are a few things you can do to educate your client and keep them satisfied with your services. Below are 5 ways VR educates its sellers when ready to sell their business. Ongoing Seller Education Even after you have finished making your presentation, have priced the business, and filled out the listing form and obtained a signature, keep in mind that you should be constantly educating the seller....

How To Attract The Right Prospects Like A Magnet

Wed, 10 Dec 2014 12:27:00 EST

Peter King VR CEO A professional business Intermediary develops his platform for success by prospecting for listings. Listings are the life blood of the business sales industry. They constitute the inventory we offer to the buying public. Selling this inventory is our business. Advertising this inventory is what attracts the buyers to our offices. It is imperative that our shelves are well stocked with sellable businesses to increase opportunities for a transaction. Each sales intermediary must lay his or her foundation for financial success by building and maintaining a professional listing portfolio....

Getting The Deal Done....Ways To Develop a Closing Strategy

Mon, 01 Dec 2014 02:41:00 EST

JoAnn Lombardi VR President Once all of the papers have been submitted to escrow for preparation, you should receive back a total amount the buyer will need to bring to closing in certified funds. This figure is based on prorating each applicable item to a certain day of closing. If you’re closing day changes or a new prorated item is added, this amount will change. In addition, make sure that the buyer understands the requirement for certified funds....

Six Steps On How To Handle Objections When Selling a Business

Fri, 21 Nov 2014 12:39:00 EST

Peter King VR CEO An important part of the selling process deals with handling objections and addressing issues and problems raised by the prospect. Most novices make the mistake of jumping in and attacking an objection, and as a result, lose ground with their prospect. To be effective at answering objections you must be a good problem solver. To do that you must maintain objectivity. Your prospects and clients are emotionally involved....

The Importance Of Effective Communication In Business Sales

Tue, 18 Nov 2014 08:03:00 EST

JoAnn Lombardi VR President Just as listening and observing skills are important, so are careful, well thought out communication skills. With important decisions such as buying or selling a business, it is critical to convey each point carefully. Equally important is that the recipient interprets a point in the way it was intended. Obviously, you cannot communicate well if you have not first observed and listened. In the majority of cases, good communication is a function of listening to what the other party has communicated. Two key elements of good communication are asking questions and giving feedback of the information....

5 Tips for Selling Your Business

Wed, 12 Nov 2014 09:31:00 EST

JoAnn Lombardi VR President Business owners own life-long dreams, not businesses. When the time comes to pass on that dream, care should be taken to get the best price. The followingtipscan helpbusinessowners successfullyselltheir businesses. 1. Position yourbusinessforsale. This process should begin the day you purchase or start thebusiness. To build long-term value, develop and maintain a tracking system of customer transactions, financial records, licenses, equipment, and inventory.2. Determine the fair market value of yourbusiness....

Business Books & Records….Who Cares? Your Buyers Do!

Tue, 07 Oct 2014 01:05:00 EST

JoAnn Lombardi VR President You likely didn't go into business for yourself because you relished the idea of creating, organizing and maintaining financial documents. Financial records are part of your ongoing operations, but if you're like most business owners, you likely don't focus on them often or think about them regularly; however, if you're thinking about selling your business, your financial records are about to become incredibly important. You've worked hard over the years to build your business and make it successful....

How To Make More Money Selling Your Business

Wed, 01 Oct 2014 09:35:00 EST

Peter King VR CEO The sale of your business is of extreme importance. Regardless of the reason you may be selling, consulting with a professional business broker presents a better opportunity. The sale of a business consists of a presentation, finding the most suitable buyers and ensuring you receive payment for what the company is actually worth, as opposed to having the chance of losing out on a fair price. A business broker is a huge help in instances like these, as they have the knowledge and professionalism to ensure the transaction is painless and fruitful. You are more than capable of making more money from selling your enterprise....

Knowing the Right Time to Sell Your Business

Wed, 24 Sep 2014 02:21:00 EST

JoAnn Lombardi VR President It can be a tricky endeavor, figuring out the best time to sell your business in a market that is constantly fluctuating. Using a VR Business Broker can help you identify important signs to look for in determining the best time to conduct business valuations and see your company sold on the market. Sell Your Business for a Compelling ReasonSometimes, things can get out of hand for a business owner who is no longer capable of dealing with all of the difficulties of his personal life as well as running his company....

Not Sure Why You Need a Business Broker to Referee Your Deals?

Mon, 08 Sep 2014 08:01:00 EST

Peter King VR CEO Many people who wish to shop for a business or sell theirs aren't always certain that they should use a business broker. Or they simply do not understand why they can't purchase or sell a business on their own and deal directly with the seller. There are several reasons why this is not a really smart plan. The number one question frequently asked by prospective business buyers or sellers is should they use a business broker. Without hesitation, the answer is, “yes” but knowing what role the business broker plays in the process will help understand why they are needed....

Getting the Most Out of Your Business Before Selling

Fri, 22 Aug 2014 09:48:00 EST

JoAnn Lombardi VR President Selling a business isn’t simple as most people would think leaving the entrepreneur with more options than they can think of. Taking the wrong approach could have a negative impact financially both for the seller and company, so knowing the advantages and disadvantages from a professional intermediary or Business Valuation Analyst (BVA) is something that helps determine how much your business worth....

10 Tips on How to Spread your Wings and Become an Entrepreneur

Wed, 13 Aug 2014 10:42:00 EST

JoAnn Lombardi VR President Have you thought about starting your own business? Are you ready to be your own boss? The time has come that you have realized that you are ready to spread your wings and go a different route but you’re unsure of which path or direction to take. Being an entrepreneur is not as scary as you may think but it isn’t a piece of cake. Like any job you take, it requires dedication, perseverance and persistence to get it right and change the world. Becoming an entrepreneur is more than what people assume and half of what people know....

Seven Ways to Sell - It Depends on Your Objective

Thu, 31 Jul 2014 09:16:00 EST

JoAnn Lombardi VR President 1. Top price at all costs The objective is clear, just like the submarine commander who said, “Damn the torpedoes, full steam ahead.” Whether it is a public company divesting a subsidiary or a private owner, regardless if the plant is moved and the employees are dismissed, the top price is paramount. Of course, the directors of a public company will be challenged by the stockholders unless they accept the best price and/or best terms. On the other hand, the private owner has full discretion over such a decision, assuming he or she has the proper voting rights....

What Is An Intermediary

Fri, 25 Jul 2014 01:39:00 EST

Peter King VR CEO What is an intermediary you ask? According to Google, it is “a person who acts as a link between people in order to try to bring about an agreement or reconciliation; a mediator.” As business broker practitioners, we prefer to refer to ourselves as “intermediaries” to enhance the professionalism of our industry by disassociating any negative connotations with the term, “broker”.In a nutshell intermediaries assist buyers and sellers of privately held business in the buying and selling process....

Is A Franchise Right For You?

Tue, 04 Mar 2014 12:23:00 EST

Peter King VR CEO Making the decision to purchase either a private business or a franchise is an important decision when you start out to begin a new business venture. There are many choices, challenges, and many benefits to a franchise opportunity so it is vital to really understand the nuances before you sign on the dotted line. Unlike a private business you are literally buying into a business structure with standards and practices that need to be followed in order to do business. If you are not one to “stay in the lines” a franchise might not be your best fit....

Why Naming Your Business Matters

Wed, 26 Feb 2014 09:48:00 EST

JoAnn Lombardi VR President Coming up with a business name that is compelling, memorable, not already taken, has an available web address, and makes sense is not an easy task. Though it involves a lot of work, picking a name for your business is critical so it pays to invest the time and effort into making sure you have a name you will be proud to display for years to come. Start by deciding what you want your name to communicate. It should reinforce: What your business does What your business sellsYour differentiating factor For example you wouldn’t just call your business “Flowers....

Networking Your Way to Success

Tue, 18 Feb 2014 02:22:00 EST

Peter King VR CEO Whether you are seeking to buy or sell a business, networking can be an invaluable resource to gain both perspective and information. The overall importance of not “being an island,” but rather being actively involved in both your local business community and local area community is imperative to be sure that people know that your business exists and understand your business benefits and value. Become an Ambassador of Your Business -- Online Being a visible source of information, advice, helpful tips, etc. gets you noticed in a good way. You want to be perceived as an experienced expert in your field....

How to Conduct Truly Effective Business Meetings

Mon, 10 Feb 2014 08:38:00 EST

JoAnn Lombardi VR President Meetings can be either extremely effective or a big waste of time. The difference in the outcome depends on the planning that takes place beforehand. 1. Establish a Meeting Objective and Stick to it Effective meetings serve a useful purpose. This is because an objective is outlined and all conversation is centered around the desired outcome. However, all too often, people call a meeting to discuss something without really delineating what outcome is desired at the conclusion of the meeting time period....

Effective Strategies to Assemble a Winning Team

Mon, 10 Feb 2014 08:20:00 EST

Peter King VR CEO Your team can make or break your business. Finding and hiring the right people that are superior fits for the important positions in your company is essential to a productive and profitable company. It is well worth the investment in time to plan and understand the necessary steps to define rolls and recruit the best and most qualified candidates. Write an effective job description Job descriptions are an essential part of hiring and managing your employees. These written summaries ensure your applicants and employees understand their roles within your organization, what they need to do, and expectations of the position....

How to Become a Better Business Leader

Mon, 03 Feb 2014 03:06:00 EST

JoAnn Lombardi VR President In order to be both a successful entrepreneur—and a successful business person—you first need to become a successful leader. The ability to keep your staff and service providers motivated and on track can be the single most important aspect of your everyday life. Great leadership is a quality that can be learned and strengthened with the correct know how. Here then is what you need to remember when embarking on a mission to improve your leadership abilities....

The Importance of Keeping Your Business Books Up-To-Date

Wed, 22 Jan 2014 12:00:00 EST

Peter King VR CEO At least once a month, you should be doing an analysis of your business, and making sure that your books and records are in working order. It's not only good to see the progression of your business, but to verify thatboth your accounts payables and receivables are in the black. If you are thinking about selling your business somewhere down the line, you shouldhave everything in shape. Additionally, you should have dashboard reports that pinpoint exactly where your revenues are coming from (or not) along with industry analysis reports that show how your business stands up against others....

How Do I Put a Value on the People in my Business?

Wed, 22 Jan 2014 11:36:00 EST

JoAnn Lombardi VR President One corporate accountant at a company colorfully described employees as "costs walking on legs." Though businesses want maximum efficiency from their employees for minimal cost, the actual measures of intangibles such as corporate efficiency due to employees' capability or customers' loyalty due to employees' efforts are frequently overlooked as gray aspects in a black and white monitoring process. Each employees' contribution is individually unique and different depending upon the given environment. Most of all, they cannot easily be valued according to traditional financial principles....

Side Stepping Common Business Pitfalls

Tue, 21 Jan 2014 10:54:00 EST

Peter King VR CEO There is no doubt that running a small business can have its unique challenges. There is an awful lot that needs to occur to keep your business successfully growing. That’s why it’s so important to focus your attention on what matters both short term and long term. Here are a few tips you can employ to try and avoid the most common mistakes that small business owners make. The key is to proactively take action so you can straighten things out before small problems become significant issues. Avoid the All or Nothing Trap ....

How to Become an Instant Business Person with No Business Background

Mon, 13 Jan 2014 01:11:00 EST

JoAnn Lombardi VR President When an entrepreneur opens up a new business there’s undoubtedly a lot of excitement and anticipation. But quickly that excitement can wane when they begin to learn that without a proper business background and plan growth can become dependent upon how fast one can handle the seemingly unending number of issues that crop up in a working day. In order to make a business thrive key factors such as location and referrals often help, however a quick education in business processes, marketing, and networking will be what ultimately fuels success....

Why Organization is an Important Part of Selling a Business

Wed, 08 Jan 2014 02:45:00 EST

Peter King VR CEO It doesn’t matter what you are buying or selling. Buyers want to buy low. Sellers want to sell high. It is all a matter of strategy when going into a transaction negotiation. But, as a seller you need to be organized and be ready with the most positive spin on any answer to the tough questions that inevitably will come up. Get your books in order . If you are a business owner and are even considering the prospect of putting your business on the market the first thing you need to do is get organized. S loppy, incomplete, or inaccurate books can scare away buyers....

Why an “Under New Ownership” Sign Isn’t Enough To Market Your New Business

Mon, 30 Dec 2013 10:22:00 EST

JoAnn Lombardi VR President Congratulations! You have just taken over an existing business and have hung out your “under new ownership” banner! Now what? How do you really connect with your community and let them understand your new value proposition? This is the time to be a “politician.” Shake hands. Show up at events. Get your face known. The more you put your persona behind your business name the more people will want to come and visit to find out what is different....

Don’t Overlook a Reputation Management Investigation When Purchasing a Business

Thu, 19 Dec 2013 12:54:00 EST

Peter King VR CEO You’ve checked the business location, the financials, and done all of your due diligence—or, have you? Leaving out a comprehensive reputation management investigation in your purchase discovery process can be a costly omission. Financials may indicated the revenue was being maintained, however disclosure information may not show the real life ratio of incoming “new” clients vs. the “repeat” loyal clientele as well as the “talk on the street” about the business. Ask Questions No business is going to voluntarily tell you that they have disgruntled customers....

Improve Your Turnaround's Forecast

Wed, 03 Jul 2013 01:00:00 EST

JoAnn Lombardi VR President Today's business climate poses many challenges - from increased global competition to a tight capital environment - that can hinder or even destroy a business. Companies struggling with poor cash flow, inadequate capital and weak leadership are especially vulnerable. Such companies can provide significant upside potential to the right buyers. But to turn an unprofitable company around, new owners must have an implementation plan and be ready to execute it. Getting to the Core If you're a potential buyer of a troubled company, you must examine it closely for hidden values, such as untried territories or poor leadership....

Don't Recycle Business Valuations

Tue, 25 Jun 2013 01:20:00 EST

Peter King VR CEO Recycle Bottles, Not Valuation s Valuation are valid only for a pecific time and purpoe. Typically, a valuator explain the valuation' cope in an engagement letter and again in the written report. Depite thi, buine owner ometime mitakenly think they can ave time and money by recycling old valuation for new purpoe.In fact, the unintended ue of a valuator'concluion can diminih the report' credibility. It may lead to miinformed buine deciion, fiduciary breache and embarraing courtroom mihap....

VR Business Brokers Facilitates Sale of Import Distribution Company

Tue, 18 Jun 2013 02:31:00 EST

JoAnn Lombardi VR President VR Business Brokers of McKinney, TX, a leader in the sale of privately held companies, recently facilitated the sale of Source Network Sales & Marketing, Inc. to Transition Capital Partners, a Dallas based private equity firm. Source Network Sales & Marketing, Inc.,based in Plano, TX, designs and distributes the LifeSmart family of products, including infrared heaters, fireplaces, saunas and spas. LifeSmart products are found in-store and on-line with many of the country’s leading retailers. The owners of Source Network will remain as minority equity partners in the new entity....

What's Behind a Business Transaction Dream Team

Tue, 11 Jun 2013 03:45:00 EST

Peter King VR CEO A knowledgeable and experienced M& deal team can help facilitate andstreamline the business sale process-from due diligence to negotiations to theexecution of agreements and other post deal transactions. Becoming a VRFranchisee affords you the opportunity to assist sellers of privately heldlower mid-market companies to successfully navigate the selling process and put together a winning dream team that can produce a win-win outcome for allparties. Choose members wisely Some of the most important decisions you'll make in the processconcern selecting professionals to help with your M& deal....

Selling a Family Business Isn't Business as Usual

Tue, 04 Jun 2013 01:40:00 EST

JoAnn Lombardi VR President Family businesses may resemble their non-family counterparts in most ways, but there's one crucial difference. Whenever close relatives work together, deep emotions invariably become involved - emotions that can further complicate the already difficult decision whether to sell a family enterprise.If you're thinking about selling a family business, don't overlook what your emotions are telling you about the potential sale. In some instances, of course, you're better off listening to your head. But in this case, it's just as important to consider what your heart is telling you too....

Five Common Valuation Myths

Tue, 28 May 2013 10:48:00 EST

Peter King VR CEO Business valuationis a complex discipline. Much of its lingo, logic and underlying mathematics can be incomprehensible to those outside the profession, giving rise to many misconceptions. So let's set the record straight concerning five common valuation myths. 1. Net income and net free cash flow are synonymous. Net income is an artificial accounting concept that is separate from cash flow. Net income includes a deduction for depreciation expense, which many small businesses base on accelerated tax schedules rather than assets' useful lives....

What Buyers Look For In A Business Opportunity

Mon, 20 May 2013 12:06:00 EST

JoAnn Lombardi VR President You have built a great business with love and care. It has grown larger than you’dever imagined, and generates a nice profit that has allowed you and your family to livecomfortably. Now you’re ready to sell. You assume there’s a buyer out there who willpay you a fair price and then nurture the company with the same attention you have.What’s more, selling the business is a major part of your retirement plan. Needless to say, buyers look at businesses differently than sellers. So to achieve theoutcome you want, it’s important to think like buyers and understand how they evaluatea business....

Companies Can Improve Their Bottom Lines with a Spin-Off

Mon, 13 May 2013 01:14:00 EST

Peter King VR CEO Slimming Down Companies Can Improve Their Bottom Lines with a Spin-OffIf your company suffers from growing pains or anticipates a hard stretch due to the current economic climate, you may want to consider a spin-off. Spinning off a business or unit can provide a variety of benefits, such as yielding much-needed cash, removing poorer-performing entities from your balance sheet and freeing up management to concentrate on your core business or pursue more profitable initiatives. To effectively grow your company, in fact, you may need to first scale back....

Keys to Negotiating a Successful M&A Deal

Tue, 07 May 2013 12:17:00 EST

JoAnn Lombardi VR President W hether you're buyingor selling a business, a few guidelines can help you negotiate a deal more effectively and improve your chances for an advantageous outcome. hile you're probably already familiar with basic negotiation strategies, most parties to an M&A transaction can use a refresher course when it comes to what may be the biggest deal of their lives. Know YourselfGood negotiators start by knowing themselves. Before you enter into sale negotiations, take time to identify your goals and your tactics for achieving them....

List Everything or Be Selective

Tue, 30 Apr 2013 11:40:00 EST

Peter King VR CEO A debate has raged within the business brokerage industry ever since there has been a business brokerage industry about the proper approach to taking a listing. Let’s look at both sides of this issue and see what makes sense for you. There are two main schools of thought on this; first, list everything you can, regardless of the price and terms. The second approach is to only take on engagements where businesses are priced at or near what you feel the true enterprise value is....

Creative Deal Structuring

Tue, 23 Apr 2013 12:03:00 EST

JoAnn Lombardi VR President CREATIVE DEAL STRUCTURING: EARNOUT AGREEMENTS Acquisition talks are proceeding smoothly. Then the subject of price comes up. Thebuyer thinks the seller’s asking price is based on overly optimistic financialprojections. The seller believes the buyer’s valuation of his company is far too low. Is the deal dead? Not necessarily. An earnout agreement can help resolve the dispute when a buyer and seller disagree about the seller’s business prospects. They are especially useful when dealing with the unknown — when the target is young and unproven, or it is emerging from a difficult financial situation....

Every Business Is A Risky Business!

Wed, 17 Apr 2013 05:27:00 EST

Peter King VR CEO Every business faces risks, but some companies are riskier than others. Assessing a company’s risk is an important part of estimating its value. Risk and value are inversely related. That is, the higher a company’s risk, the lower its value. Risk is a function of a company’s external threats and internal weaknesses, but these forces only tell part ofthe story. On the flip side, a business’s strengths and opportunities minimize risk and, therefore, build value....

Buying A Business - Putting Together an Effective Business Plan

Fri, 12 Apr 2013 11:42:00 EST

JoAnn Lombardi VR President When you are going to buy a business, it’s important that you understand how a business plan works. There are many people that before they bought a business had never created a business plan.At VR Business Brokers, we will educate you on formulating an effective plan when you come in for a consultation.When discussing one of the business opportunities that we have available, you will discover that many already have an existing plan in place. This will give you a solid foundation to work from, where you can either continue to follow, revise or change completely....

How To Be A Successful Business Broker

Tue, 02 Apr 2013 08:11:00 EST

Peter King VR CEO Hundreds of articles, primers, books and opinions have been written on “How To Be A Successful Business Broker”, but t he simple answer is it requires working hard and working smart! Yes, we know everyone considers themselves a “hard worker” as it may very well be, but it really takes hard work, plenty of wisdom and street smarts to be on top of the heap in this business.Success begins with a plan. It’s important to develop a keen business plan from the start to make sure to stay on the right track to success....

Do Your Homework Before Applying for SBA Loans

Tue, 19 Mar 2013 11:42:00 EST

Peter King VR CEO Preparing Yourself To Apply For An SBA Business Loan In today's economic environment, there's a smart way to obtain a small-business loan according to a recent article in the Los Angeles Times. Preparation is one thing that is essential in obtaining loan approval. You need to be able to explain and justify every area of the business you are buying. You can't simply present projections for the next five years and talk about construction and renovation. In many cases, you will need additional data and may have to revise your application....

Business Sales vs. Selling Real Estate

Wed, 13 Mar 2013 11:12:00 EST

JoAnn Lombardi VR President Consider The Advantages Of Selling Businesses and Mergers & Acquisitions through VR Business Sales. Before Buying a Franchise to be an M&A Advisor, or becoming a broker to sell real estate, there are several factors to consider in this economy. Privately-held businesses drive the United States economy. There are over 25 million privately-held businesses alone in United States, which make up over 52% of the United States GDP and 50% of the domestic workforce. The same holds true around the world as privately-held businesses are the economic engine of most countries....

Six Sources For Financing A Business Acquisition

Thu, 07 Mar 2013 06:03:00 EST

Peter King VR CEO Six Financing Sources for Buying a Business Congratulations. You've decided to buy a company. The only thing that stands between you and the purchase is lack of capital. Fortunately, many sources of capital exist that can help you accomplish an acquisition-some simple and straightforward, others more esoteric.The Big 6Wading through financing choices-let alone picking one-can be taxing. Here are the basics about six options you can discuss with an acquisition professional. 1. Buyer's liquid cash. On the simple and straightforward side of the ledger sits your bank account....

Sell Your Business For a Fair Market Price

Thu, 21 Feb 2013 03:44:00 EST

JoAnn Lombardi VR President B usiness owners face a myriad of challenges on a daily basis. One challenge no owner wants to grapple with is financial distress. ut if you've struggled with declining profits, rising costs, fierce competition and other overwhelming problems for some time, and the situation doesn't seem to be improving, selling may be the best solution. And there are steps VR M&A Advisors can assist you with to maximize your business's value and get a relatively fair sale price ....

Selling Your Business at the Right Time

Tue, 12 Feb 2013 10:08:00 EST

Peter King VR CEO I n a perfect world, business owners sell their companies when banks are anxious to lend, the economy is strong, their industry is booming and the business is enjoying record profitability, with the future looking even brighter. Naturally, a perfect convergence of all of these variables would enable you to maximize the value of your business - allowing you to sell it at the highest price and on the best terms. But most business owners don't sell when market conditions are perfect. nstead, they make the decision for more personal reasons, such as to retire or to free up cash to pursue other investment opportunities....

Loose Lips Sink Deals

Wed, 30 Jan 2013 03:38:00 EST

JoAnn Lombardi VR President Confidentiality Agreements are Essential When It Comes to M&As During World War II, posters showed Uncle Sam with a finger to his lips superimposed over a freight ship. The caption read "Loose Lips Sink Ships." It was a clever way to remind troops never to discuss confidential information, lest they unintentionally disclose secrets to the enemy that could cause disaster. Though ramifications of breaching a business deal are not as dire, maintaining strict silence is still critical....

Interviewing Potential Private Equity Partners

Tue, 22 Jan 2013 03:08:00 EST

Peter King VR CEO T he success of your private equity partnership likely will come down to such basic issues as shared goals and mutual trust. VR M&A Advisors will assist you in how to interview potential partners, so that you're comfortable with what questions to ask and what to expect for responses....

MAC 101: A Primer on Material Adverse Change Clauses

Wed, 16 Jan 2013 05:32:00 EST

JoAnn Lombardi VR President If your planned acquisition encounters turbulence because your target's finances have suddenly taken a nosedive, you might want to consider one of a buyer's last-ditch remedies - the material adverse change (MAC) clause. Buyers should never claim a MAC without careful consideration, and they must understand that it won't guarantee an escape from a bad deal without penalties. Nonetheless, you should become familiar with the MAC option. Long History MAC clauses have been included in sales agreements for decades but rarely invoked - until recently....

Understanding the Principles of Private Equity Financing

Wed, 09 Jan 2013 01:45:00 EST

Peter King VR CEO Utilizing Private Equity to Grow Your Company T here are plenty of myths surround private equity investors. Some business owners, for example, fear that if they partner with a private equity group, it might make off with the value of their company by buying low and cutting them out of the rewards when it later sells the company at a premium. his kind of concern generally is unfounded. Private equity can be an excellent way to obtain the funds and expertise you need to grow your company. Before taking the leap, however, you should know the facts about these types of investors. Do your homework....

How to Retain Customers After the Deal Closes

Wed, 02 Jan 2013 12:37:00 EST

JoAnn Lombardi VR President When a company is acquired, its loyal customers may feel uncertain about the new owners - uncertain enough to take their business elsewhere. It's important, therefore, to start making customer-retention plans early in the acquisition process to help allay customer fears, thwart predatory competitors and ensure post-deal profitability. Even if you don't have the budget for a large-scale marketing campaign, you can make a good first impression and build a positive relationship with your acquisition's customers by implementing these simple strategies: Do your research....

5 Ways to Prepare For Business Transaction Deal Breakers

Thu, 27 Dec 2012 11:49:00 EST

Peter King VR CEO You’re buying a rival company. The transaction is nearly complete. At the last minute, an unexpected problem arises, and the deal falls apart. This nightmare scenario plays out countless times every year. But you greatly increase the odds of a smooth and successful acquisition by looking for potential deal breakers early in your due diligence efforts. The best time to address these situations is before the other company’sproblems become yours. Here are five potentially unanticipated deal breakers: 1. Evaluate litigation risk....

The VR Transaction Process: 20 steps For A Successful Sale - Pt II

Mon, 17 Dec 2012 03:09:00 EST

JoAnn Lombardi VR President Last week our CEO Peter King took a look at the first 10 steps in the VR Transaction Process. This week we will continue with the remaining 10. This proven methodology is time tested and will guide you down the path to a successful transaction. Without further ado: 11. Offer Acceptance or Counter Offer: You may accept the offer as it is written, or with the help and experience of your VR Intermediary, create a counter offer or reject the offer entirely. If necessary, we will facilitate the negotiations of the counter proposals. 12....

The VR Transaction Process: 20 Steps To A Successful Sale - Part 1

Wed, 12 Dec 2012 02:30:00 EST

Peter King VR CEO With over 30 years of experience in selling small to medium enterprises (SME), VR has developed a dynamic and effective Transaction Process to promote a win/win outcome for both Buyer and Seller. Over the next two blog entries, we shall be sharing with you the 20 Step VR Process to Selling your business. Here are the first 10 Steps to a successful sale: 1. InitialMeeting: TheinitialmeetingservesasanintroductiontoVRandexplanationonhowVRcanhelpmaximizethevalueofyourbusinessandansweranyquestions....

Six Strategies for Surviving a Tight Credit Environment

Tue, 04 Dec 2012 03:05:00 EST

JoAnn Lombardi VR President T ightened credit conditions are almost inevitable when the economy slows down. he cost of credit rises and lenders naturally become more risk-averse. here's no way to get around the reality of tighter credit markets, but certain strategies can help your business survive - and even grow - during the downturn. Consider these six strategies: Keep lenders in the loop. Communicate proactively and frequently with your lenders, instead of waiting until you have an urgent need or problem. Keep them abreast of your company's strategic plans and share your successes....

Is Private Equity for Me?

Wed, 28 Nov 2012 04:47:00 EST

Peter King VR CEO Private Equity Basics Private equity investors buy shares in a private company intending to help grow and, eventually, sell the business. Limited partners provide the funds, and general managers select and manage the investments. Private equity groups usually take a controlling or significant interest in companies in one of three ways: 1. Venture capitalHere, investors focus on early-stage companies expected to produce strong revenue in afew years, or later-stage companies that are likely togenerate increased profit in a year or two.2....

Small Business Prices Rise, Buying Opportunities Plentiful

Mon, 19 Nov 2012 11:20:00 EST

JoAnn Lombardi VR President Is NOW the right time to enter the market to buy a small business ? According to the latest information from industry analysts, small business sales and small businessselling prices are starting to pick up. Third quarter sales for 2012 were slightly higher than the sameperiod in 2011. Selling prices also increased during this period.Analysts believe this is due to the improving economy which has resulted in higher earnings for smallbusiness. These higher earnings have contributed to a strong trend resulting in more businesses sold,and sold with an increased selling price....

VR Awards - 3rd Quarter 2012

Mon, 05 Nov 2012 04:34:00 EST

Peter King VR CEO VR is proud to announce the awards for the 3rd quarter of 2012. We'd like to extend our sincerecongratulations to all of the owners and associates that put in hours of hard work to achieve such loftyheights. Top Producers1. Samid Gouar - Coral Springs, FL2. Tom Gottlieb - Austin, TX3. Jerry Myers - Springfield, MO4. Gary Zolnierek - Austin, TX5. Joe Braier - Waukesha, WI6. Todd Schlender -Waukesha, WI7. Jonathan Hwang - Artesia, CA8. Tim Bullard -Waukesha, WI9. Jean You - Artesia, CA10....

Financing for Small Business Owners Continues to Improve

Thu, 17 May 2012 11:03:00 EST

Peter King VR CEO A sign that lending for small businesses continues to improve is the recent report that Wells Fargo approved more than $548 million in SBA 7(a) loans nationwide so far this year. As reported by Market Watch and Business Wire, Wells Fargo has continued to issue the most SBA loan dollars to small business owners than any other lender in the country. The announcement came as Wells Fargo started its annual Small Business Appreciation, which celebrates how important small businesses are to the US economic recovery....

Oklahoma City and Texas Cities Named Most Friendly Toward Small Business

Mon, 14 May 2012 11:11:00 EST

JoAnn Lombardi VR President In a recent survey by Thumbtack.com, cities such as Oklahoma City, Oklahoma, Dallas-Fort Worth, Texas, San Antonio, Texas and Austin, Texas, were given the highest marks for business-friendly regulations.As reported by the Wall Street Journal , approximately 6,000 small businesses owners took part in the survey, where they were asked to measure “overall regulatory friendliness” in such areas as environmental and labor rules, health and safety codes. All of which are essential for entrepreneurs to know that are in the market to buy a business....

How to Approach Selling Your Business

Fri, 24 Feb 2012 11:00:00 EST

JoAnn Lombardi VR President When a business owner makes the decision to sell, it can be instantaneous. It can be made after years of planning or quickly through thoughts of retirement, personal or family matters. Regardless of the reason, the goal of selling a business remains the same, maximizing what you receive from the sale.Businesses change hands every year. Because this will be one of the most important transactions you will make in your life, you should approach it with careful and concise planning. It should be the same time and energy that you have dedicated to building that business....

Baby Boomers Find Career Opportunities through VR Franchise Showcase

Thu, 16 Feb 2012 03:13:00 EST

Peter King VR CEO Choosing an opportunity offered by the VR Franchise Showcase is not only great for aspiring entrepreneurs who want to be their own boss, but it's also providing a good option for people over the age of 45, who have been laid off and have struggled to find new positions in the market. This has become an ongoing trend because franchising provides less risk than an increasing amount of the jobs available in the corporate market today....

How Do You Answer a Buyer’s Concerns Regarding Your Business?

Fri, 10 Feb 2012 11:48:00 EST

JoAnn Lombardi VR President Any buyer when they’re reviewing your business will have these questions to ask: What is the business’ growth potential? How can I grow the business?What separates your business from the competition in the marketplace?What are the variables involved in operating the business?How stable is the management and work force in place?Are there pending issues regarding the lease or real estate involved?What type of existing debts and other liabilities are present?Has the business been audited? Is all financial information on the business up to date?How much time do you spend at the operation? As the seller, you shou

Keeping Yourself Open to Buyer Inquiries for Your Business

Thu, 09 Feb 2012 05:25:00 EST

Peter King VR CEO All businesses are inquired by a variety of different buyers - some are qualified while others are tire kickers. If you're a business owner, you may not be thinking of selling right now; however, the time will come when you hit the wall and decide right at that moment you need to find a qualified buyer to take over the reins. Therefore, if a buyer walks through the door of your establishment and give you an offer, don't turn it down first....

Being Aware of Deal Breakers in a Business Sale

Fri, 27 Jan 2012 02:41:00 EST

JoAnn Lombardi VR President When the time is approaching when the business sale is near, both buyers and sellers can jump the gun, resulting in the situation quickly moving south. Whether it’s an issue with the closing documents being done at escrow, question of funds being transferred, incorrect inventory count or use of goodwill or intellectual property, a deal can abruptly come to a stop if either party isn’t careful.At VR, we adviseyou on paying attention to every step of the process. There are a fewfactors that can cause a deal to collapse, which you shouldknow....

Returning Veterans See the Opportunities in Franchising through VetFran Program

Wed, 25 Jan 2012 09:48:00 EST

Peter King VR CEO A challenge that many military veterans have when they return from their tours overseas is working their way back into a work force that continues to see high unemployment. However, many were able to see new opportunities recently at the 2012 Franchise Expo South in Miami Beach, Florida.Many have the leadership and skills necessary to run a business due to their military experience, and have discovered that franchising is a great opportunity to be their own boss....

Remembering Assets in a Business Valuation

Mon, 16 Jan 2012 09:48:00 EST

Peter King VR CEO Did you know that a business' assets are an important piece to a business valuation? Most people involved in selling their business underestimate the importance of the fair market value of their assets. Relying solely on book value or your best estimate will cost you a lot of money left on the table. In order to perform an accurate valuation for your business, you have to examine the value of its assets....

Understanding Intellectual Capital in a Business

Fri, 30 Dec 2011 12:44:00 EST

JoAnn Lombardi VR President Intellectual capital (IC) is just that: a capital asset consisting of intellectual material. As such, it is one of three forms of capital: Financial capital; Tangible or fixed assets, which include land, buildings, machinery, and other long-lived equipment; andKnowledge. To be considered intellectual capital, knowledge must be an asset – able to be used to create wealth....

The Importance of Networking

Thu, 15 Dec 2011 12:17:00 EST

Peter King VR CEO With the arrival of 2012, it’s important to reach out to new potential buyers and sellers in the marketplace and marketspace. Regardless of whether you’re in a small and large market, being part of your local chamber of commerce is important. Many will hold community seminars and meet-and-greet events with business leaders and owners in the area. Remember, even with all the new technologies that we have at our disposal today; it’s not only what you know, but who you know that gets you through the door....

Elements to Avoid When Valuating a Business

Wed, 30 Nov 2011 11:56:00 EST

Peter King VR CEO When valuating a business, it's important to understand the common mistakes that can be made. At VR, we perform a business valuation that is not only comprehensive but avoids relying on certain elements such as the following. Unrealistic Cash Flow Projections The most common mistake typically made in valuation is unrealistic cash flow projections vs. the discount rate being used in the discounted future cash flow analysis.Aggressive growth projections, when not well supported by good market research and analysis of the company being valued, carry high risk factors with them....

Using New Yardsticks to Measure Your Business

Wed, 30 Nov 2011 11:30:00 EST

JoAnn Lombardi VR President The Internet is an important tool for enhancing the value of any business and its owners. As a business owner, it allows you to develop new ways to measure your performance as well as market to qualified buyers if you are looking to sell. At VR, we use a variety of different yardsticks to help enhance the value of your business so that it will be more attractive to qualified buyers. In today’s marketplace and marketspace, it’s imperative that you utilize the resources that VR provides to effectively sell your business....

Buying a Franchise Buys You Their Brand

Mon, 28 Nov 2011 10:25:00 EST

Peter King VR CEO If you’re an entrepreneur seeking to invest in a business opportunity, a franchise can be very lucrative and advantageous. This starts with the brand name recognition that the franchisor has built through delivering a quality product or service with a strong marketing campaign. This brand recognition is a major asset and valued intangible thatthe franchisor can offer a franchisee when they buy into a new franchise opportunity. The franchisor brand only becomes more valuable as the franchise matures, and consumers not only recognize the name but relate to the quality product and services that they offer....

Preparing an Offer as a Business Buyer

Thu, 17 Nov 2011 10:48:00 EST

JoAnn Lombardi VR President When you are looking to buy a business, VR will assist you in finding the one that matches your qualifications and interests. More importantly, we will educate you on what the seller expects from you as a buyer, performing due diligence and writing an offer that’s fair in relation to the marketplace. Both the seller and you, as the buyer, have to understand each other’s motivations and personality types. Every VR business intermediary will assist you in deciding what is most important to you in the offer....

Educating Yourself to the Workings of an M&A Transaction

Wed, 09 Nov 2011 12:39:00 EST

JoAnn Lombardi VR President Acquisitions will always be utilized by businesses to accomplish a variety of strategic objectives with sales being the most common means to monetize an investment. Currently, the market is ripe for M&A activity as: Public companies with deflated stock prices become more susceptible to takeovers, and Those seeking financing for expansion do not have the same access as they once did. Ultimately, many business owners will be involved in some sort of M&A transaction....

Understanding Venture Capital as a Type of Private Equity Investment

Tue, 08 Nov 2011 12:33:00 EST

JoAnn Lombardi VR President Most people don’t know understand the concept of private equity and venture capital when it comes to financing business investments. Often, both terms are used interchangeably, but each is different. Venture capital refers to a significant investment made in a new venture of technology often by one person or an entity . By contrast, private equity refers to raising funds to purchase equity in a business through a private offering. Only one third of all private equity funds can be considered “venture capital” funds....

Making an Alliance Work in Business

Thu, 03 Nov 2011 11:47:00 EST

Peter King VR CEO Forging an alliance with another companyin buying a business can be very successful, but requires that the partners are culturally compatible. This involves more than being polite to each otherandthrowingresources,processes,peopleandcustomersintoaventure.Youmustputittogethercarefully. ConductanAssessmentofAllSides’CulturesandManagementStylesExamineeveryparty’svalues....

Fulfilling Your Destiny as a Franchise Owner

Wed, 26 Oct 2011 05:51:00 EST

Peter King VR CEO As a franchise owner, you can control your own destiny. Many aspiring business owners want to be able to start a business that gives them the best chance at being successful. Then there are those that are in semi-retirement, who find that hobbies and lifelong passions are not enough to pass the time. Theywant something structured. Buying a franchise can be an excellent investment. It provides not only financial growth but freedom in running your own business. The key to finding the right franchise is finding the type of business that matches your interests, your passions and you would be proud to own....

Developing a High Performance Business Web

Wed, 12 Oct 2011 09:35:00 EST

Peter King VR CEO The first step in creating a high performance business web is to separate the value proposition that the end customer receives and experiences. Think about the genuine customer needs that your service addresses, not just what you do to get the business. Avoid preoccupation with the channels that stand between you and the real customer. Take apart the end customer’s experience in terms of your value proposition as well as the enabling services, resources, business processes and organizational structure into individual components....

Maximizing Your Management of Time for Social Media

Thu, 06 Oct 2011 03:27:00 EST

JoAnn Lombardi VR President Every business should be using social media to market their products and services. One concern that arises from many owners is the amount of time needed to use social media effectively – ie posting on Facebook and Twitter. The majority of marketers spend an average of 6 hours a week. But if you’re a small business owner with a couple of employees to run everything, you have to use the time that you have available accordingly to maximize your social media work. What many are using today to operate their social media marketing effectively is using something called digital asset management (DAM)....

Knowing when You Need to Change Strategy as a Business Owner

Fri, 30 Sep 2011 05:26:00 EST

JoAnn Lombardi VR President Strategy has become increasingly important to your franchise success. Good strategy is the result of knowing the assumptions of your franchisor’s established brand model, sound investigation, thinking that is open as well as curious and broad in scope. Most of all, it’s about knowing the right questions to ask. Though strategy can change frequently; today, it is better to be useful that correct. Always examine the strategy at hand and see if it’s working to help generate customers and keep them coming....

Raising Capital

Wed, 07 Sep 2011 03:37:00 EST

Peter King VR CEO When purchasing a business, raising capital is one of the most important initial requirements. The key ingredient when raising capital is to prepare a carefully thought-out business plan. The business plan will not only serve to determine initial capital requirements, it will also assist creditors in determining the maximum amount and the terms of financing that will be made available. Once capital requirements have been determined, it is time to act. Since institutions will typically only provide 80% to 90% of a purchase, many business purchasers will need to use a combination of alternate sources to raise the required capital....

What Makes a Successful Franchisor

Tue, 23 Aug 2011 04:13:00 EST

Peter King VR CEO When you become a franchise owner, there are a variety of benefits that you will receive such as the franchisor’s name and brand, the quality service or product already in place and marketing support and assistance. Name recognition, in particular, can provide you with great success as a franchisee. As the franchise matures, recognition of the name and brand increases, which leads to more people wanting to use the name and the higher a franchise fee that the franchisor will charge for the privilege of operating under it....

Applying Lessons from Past Experiences of Other Business Owners

Thu, 18 Aug 2011 04:19:00 EST

JoAnn Lombardi VR President The basic rules of business strategy remain the same in the age of the Internet. Like selling gum in a store, selling products on a computer screen isn’t about technology. It’s about what you’re selling and if there is a demand in the marketplace and marketspace. For example, a technology business develops something new that cannot be easily imitated. This is the great lesson of the Internet failures. New business can be understood by looking at the successes and failures of the past....

Developing a High Performance Business Web

Wed, 03 Aug 2011 09:42:00 EST

The Brand Makes the Franchisor

Thu, 28 Jul 2011 02:43:00 EST

JoAnn Lombardi VR President When looking at a franchise, a benefit that you as a potential franchisee should see is to be identified with that franchisor’s name and brand. The longer that a franchisor has been in existence and has matured, recognition of the brand name increases; and the more valuable it becomes to you as a franchisee. Delivering a quality service or product with the help of advertising will elevate a franchisor’s name recognition with the general public....

Understanding Transaction Costs for Your Business

Mon, 18 Jul 2011 12:01:00 EST

JoAnn Lombardi VR President To understand transaction costs for your business, you must first ask yourself why your business exists. Why doesn’t market pricing regulate all economic activity? Why isn’t each person at every step of production and delivery an independent profit center? In 1937, Nobel laureate Ronald Coase asked these questions, in which he blamed transaction costs for the contradiction between market agility and a business’ stubborn durability. Businesses, in general, incur transaction costs when, instead of using their internal resources, they go to the market for products or services....

Credit Scores Help Speed Up Being Approved for a Loan

Thu, 07 Jul 2011 11:34:00 EST

JoAnn Lombardi VR President The increased use of credit scoring has helped many entrepreneurs obtain financing. It has become so prevalent that one credit scoring company estimates that 85 percent of all lenders use credit scoring in their origination process. How lenders base their credit decisions will help you when it comes time for you to look into financing. Many banks and loan institutions are beginning to rely more on credit scores instead of reports because the process can be less time consuming and more objective.A credit score is simply a number that determines an applicant’s likelihood of repaying a loan....

Raising the Bar: How to Set Effective Targets

Thu, 16 Jun 2011 06:02:00 EST

Peter King VR CEO As business owners and managers, we all want more productivity from our employees and associates. Often as managers we have no choice, because in reality we need more productivity. We must continue to raise the bar under pressure from all sides; enforced cost cutting, volatile labor markets, fresh competition from developing nations, increasingly in charge customers, and we have to do it with fewer people and less leverage. It’s a well-established fact that setting concrete objectives raises workplace productivity. Moving the bar upward is practically guaranteed to produce higher returns....

The Offer of Sale between the Buyer and Seller

Tue, 31 May 2011 04:41:00 EST

Peter King VR CEO For an offer to take place on a business, rapport has to be established first. This is where the sale begins. As stated in every VR Listing Agreement, the best will be done by the VR Business Broker to find a buyer to sell over the engagement. For a sale to be done successfully, a positive relationship must be created between the seller, the VR broker and the buyer. The seller and the buyer must communicate with the VR Business Broker what is most important in the offer....

How to be Successful as a Franchise Owner

Wed, 25 May 2011 12:53:00 EST

Peter King VR CEO After you’ve done your research, weighed the advantages and disadvantages, the hours you’re willing to spend managing and you’re ready to select the franchise that interests you; this question will come up: how will your business make money. No franchise company can guarantee this, regardless of their track record. However, you canimprove your chances if you follow the following guidelines before you sign the franchise agreement: Know Yourself Choose a franchise that matches your interests and skill set as closely as possible that you believe you can do well. Know your strengths and weaknesses....

Calculating the Working Capital that You Have Available

Mon, 16 May 2011 05:26:00 EST

JoAnn Lombardi VR President Working capital describes capital (usually cash) as it moves through a business. It first flows from a company to pay for supplies, materials, finished goods inventory and wages to workers who produce goods and services. It then flows into a company as goods and services sold as well as through new investment equity and received loans. Each stage of this cycle consumes time. The more time the stages consume, the greater the demands are on working capital....

Internet Marketing is Only Part of the Overall Package

Thu, 12 May 2011 11:08:00 EST

JoAnn Lombardi VR President The objective of Internet marketing is to be integrated into the overall marketing strategy, where it can support and be supported by offline marketing activities. That doesn't mean Internet marketing is not about a big idea, some compelling graphics and a killer catchphrase. Whereas offline marketing brings consumers to the web site with such approaches, Internet marketing answers the questions comprehensively after interest has been peaked. Back It Up with E-mail Marketing Since the Web was launched, perceptive marketers have been stressing that every web site should have an e-mail marketing strategy....

Evaluating a Franchise

Wed, 27 Apr 2011 11:17:00 EST

Peter King VR CEO When you’re considering a franchise to buy, you want to review everything about the franchisor, the contract, the market and, most of all, yourself. This will ensure that you are making the right decision. The US Commerce Department has created a checklist that has helped thousands of entrepreneurs in the same position. The Franchise 1.) Did you have your attorney review and approve the franchise agreement line for line?2.) Are there any steps that the franchise requires of you that your attorney deems unwise or illegal in your state, county or city?3....

Determining Risk when Buying a Business

Mon, 25 Apr 2011 09:40:00 EST

Peter King VR CEO Risk can be influenced by the stage of the venture, the competitive advantage, proprietary technology, the expertise and experience of management and many other factors that can determine whether a venture succeeds or fails. It is possible for a venture to fail and lenders to get their money back. This is the strategy used by asset-based lenders. Banks want businesses to have sufficient cash flow to be able to repay their loan and interest. They also insist on a secondary source of repayment, whether in the form of collateral that they can liquidate or guarantees from sources who could repay....

Franchise Industries Growing in Popularity

Wed, 30 Mar 2011 04:06:00 EST

Peter King VR CEO There are many franchise industries that are growing rapidly from auto repair to quick service restaurants to financial services. Many resources such as the VR Franchise Showcase offer aspiring and established entrepreneurs with exciting and profitable opportunities with an established brand and business model....

Understanding Your Strengths and Weaknesses before Buying a Business

Mon, 28 Mar 2011 09:58:00 EST

JoAnn Lombardi VR President When you're coming close to buying a business, you will want to investigate and research every objective you have. You will want to see what the alternatives to achieve these goals are. Once you have done this, you should assess the business you’re buying and its current operations. Understanding the company’s strengths and weaknesses will help you be more objective about its value and allow you to negotiate more effectively....

Making an Offer on a Business

Tue, 15 Mar 2011 04:48:00 EST

Peter King VR CEO When an offer is made on a business; generally, there are three ways for to do this as well as negotiating price and terms. There is the down payment, the transfer of a property lease and how the financing involved. Terms of Payment An offer will include both a down payment and a seller carry-back note from the buyer – i.e. paid over x years at x%. This is based on the value of the business. Any VR Business Intermediary will be able to determine the fair market value of the business where both the buyer and the seller can agree upon....

Why You Should Buy a Franchise

Thu, 24 Feb 2011 02:36:00 EST

JoAnn Lombardi VR President Franchising has been called the last and best hope for those considering buying a business of their own. Franchising allows small business owners an opportunity to compete successfully with giants. They offer a unique opportunity for a person with limited business experience to benefit from the learning curve of others. Compared to independent start-ups, franchised enterprises offer a remarkably high probability for success....

Ensuring Your Business Retains Its Value when Looking to Sell

Mon, 21 Feb 2011 02:12:00 EST

Peter King VR CEO Owning a business takes a lot of hard work and dedication. Most of all, you need to have a passion for what you do on a daily basis – managing the business effectively, handling day-to-day operations, attending to situations when they evolve, etc. Like anything in life, your ownership days have a start and an ending point. The latter of which can happen at any time.This can lead you to decide it’s time to sell the business to someone else. There are a variety of different factors that can lead you to decide you want to sell your business to an aspiring entrepreneur....

Finding the Right Business for You

Mon, 07 Feb 2011 03:44:00 EST

JoAnn Lombardi VR President Before delving too deeply into the technicalities of due diligence when buying a business, remember the following point: Always focus on finding the right business before concerning yourself with the right price. Don’t base your search solely on finding a good deal or a steal. The price has to be considered secondarily to your personal preferences relating to how you want to spend your time and energy – this is important considering you will be spending anywhere from 40 to 80 hours a week at your chosen business....

Reducing Risk Will Pay Off at the Closing Table

Thu, 27 Jan 2011 11:15:00 EST

Peter King VR CEO When considering the idea of selling your company, it’s important that you the owner understand that the relationship between risk and cash flow will always be the main consideration of the company’s value. Depending on the size of the company, Seller’s Discretionary Cash Flow, EBITDA, or EBIT are all standard levels of cash flow (adjusted) potential buyers will look at as the basis for determining value. Ultimately, it’s the present value of future cash flow that a potential buyer is purchasing....

Determining the Fair Market Value of a Business

Fri, 07 Jan 2011 04:33:00 EST

Peter King VR CEO It should be noted that in determining the fair market value of a business, the appearance of the establishment, equipment and products is imperative. In particular, the equipment must be judged on mechanical and electrical working conditions and not just on appearance. Paint, lubrication and general clean up should be part of general maintenance and should not be used to cover up defective equipment.The physical condition, deterioration, depreciation or state of repair is a major factor in values. Loss of value due to curable or incurable depreciation is a consideration of market value....

Understanding Your Strengths and Weaknesses before Buying a Business

Mon, 20 Dec 2010 11:24:00 EST

JoAnn Lombardi VR President When you are coming close to buying a business, you will want to investigate and research every objective you have. You will want to see what the alternatives to achieve these goals are. Once you have done this, you should assess the business you’re buying and its current operations. Understanding the company’s strengths and weaknesses will help you be more objective about its value and allow you to negotiate more effectively....

Generating a Plan for Your Business

Mon, 20 Dec 2010 10:13:00 EST

Peter King VR CEO Deciding to buy a business is an exciting, yet scary process. Developing a business plan can help ensure that you know where you want to take your business and how to get there. As a result, you have a "roadmap" to help you achieve your goals as a business owner. Defining Your Objectives Before entering the market, you should realistically examine your objectives. There are a number of reasons for why you should buy a business. Your business objectives may be met faster and at lower cost. You can expand rapidly into a new location by buying anotherbusiness that's in the samemarket as yours....

Seller Financing Contributes to Successful Business Sales

Wed, 03 Nov 2010 11:33:00 EST

Peter King VR CEO As is taught in training at VR Corporate for all franchisees, seller financing can help sell a businesses. Most sellers are entrepreneurial like your past and present clients, selling one business to invest in another. You can bring both buyers and seller together to close a deal through seller financing. This can help you in a variety of circumstances where obtaining capital from lenders can bedifficult in this economy....

Advantages of Buying a Franchise

Thu, 14 Oct 2010 03:17:00 EST

Peter King VR CEO When you are looking to become a business owner for the first time, buying a franchise can be a smart move. With buying a franchise, you have the best of both worlds: starting a business you own independently, while having the support of an established operating system with already existing products and services . Although, in most cases, you will have to follow a set of rules, regulations, restrictions and other requirements when you buy a franchise; you can establish a customer base right away due to the brand that’s been already set in the market....

What a Business is Worth to Strategic Buyer

Thu, 14 Oct 2010 02:48:00 EST

JoAnn Lombardi VR President Buyer perception will affect what a buyer is willing to pay for a business.Itwill also makedifficult to considertheestimating the target business' value. A business is worth more to a strategic buyer where synergies, economies of scale and other integration benefits can be achieved ....

What You Get When You Buy a Franchise

Thu, 30 Sep 2010 02:46:00 EST

JoAnn Lombardi VR President When you are looking to buy a business, a franchise can be a smart investment. Anyone can run a franchise as long as you adhere to the company guidelines. There are many reasons why you should consider buying a franchise: Successful Business Model You will have a greater chance of success when you buy a franchise business because there is already a proven model in place for you to follow. Only with a franchise can you own the business independently, while receiving support from the franchisor through marketing, training and corporate support.Established Franchise Brand This is a very important element....

Investigate Your Financing Options When Buying a Business

Fri, 24 Sep 2010 04:15:00 EST

Peter King VR CEO Raisingcapitalisoneofthemostimportantrequirementswhenyoubuyabusiness.Youwillberequiredtoprepareawell-thought-outbusinessplan.Thisisvitalnotonlyforwhenyouareusingcapitaltobuyabusinessbutalsoforbudgetinginitialoperatingexpenses.Additionally,abusinessplanwillhelpcreditorstodeterminethemaximumamountandtermsoffinancingthatwillbemadeavailabletoyou. CHOOSINGTHERIGHTFINANCINGOPTIONS Sincemostfinancialinstitutionsonlyprovide80to90percentofyourbuyingabusiness,manybusinessownershavetouseacombinationofdifferentsourcestoraisetheneededcapital....

Price vs. Value

Thu, 09 Sep 2010 11:10:00 EST

Peter King VR CEO A common misconception is that a business’ price is the same as its value. This is not always true. Price can be determined by many factors including deal terms, buyer perception, etc. There are many types of value as well, including fair market value, fair value and value to the buyer. Price can be skewed up by favorable deal terms such as long term financing, low or no interest rate on seller notes, earnouts, and stock vs. cash. Price can be skewed down by unfavorable deal terms such as an all cash transaction with no seller financing....

Valuation Considerations When Buying or Selling a Business

Thu, 09 Sep 2010 10:42:00 EST

JoAnn Lombardi VR President The single most important decision in making an acquisition (or completing a merger) is in determining the value or setting the price. In a traditional merger, where the acquiredbusiness' shareholders exchange their stock for stock in the acquiring business, the negotiation of price seems simple – what is eachbusiness' stock worth? Although this may sound simple, there are many considerations each must make in valuing the assets or stock of both businesses and/or the target business. KEY CONSIDERATIONS There are many considerations that should be made when estimating the value of a mid-market business....

If You’re Serious about Buying a Business

Mon, 16 Aug 2010 05:41:00 EST

JoAnn Lombardi VR President A serious buyer should have the answers to the following questions before looking into purchasing a business....

Five Pointers When Thinking of Selling a Business

Mon, 16 Aug 2010 05:39:00 EST

Peter King VR CEO Everything always has a beginning, middle and an end. This is true when you look at business ownership. Any business owner will inevitably start thinking of selling their business somewhere down the road. The smart business owner will start planning to sell when they’ve bought it through planning their marketing and growth. Regardless of when you start thinking of selling, there are five tips you should know. Resolve Any Current Business Problems The last thing any buyer wants is to buy into old problems or litigation pending. This will keep you from finding a qualified buyer to take over ownership....

The Advantages of Buying a Franchise

Tue, 20 Jul 2010 12:34:00 EST

JoAnn Lombardi VR President Buying your own franchise can be a sound investment. You can fulfill your entrepreneurial goals while receiving training, support and marketing from the corporate office. In the past, many aspiring business owners might be reluctant to buy a franchise business over starting one of their own. However, most don’t realize the many advantages and benefits of buying a franchise. Higher Chance of Success You will experience the best of both worlds with franchising. You own the individual business, but you receive support from the franchisor in regards to marketing, training franchise assistance....

Operating an Effective and Successful Business after Buying

Thu, 15 Jul 2010 04:30:00 EST

Peter King VR CEO When you are going to buy a business, you have to know how to be an effective manager. Since the business you have bought is now yours to run, there are some important points to follow to be not only an effective but a successful manager. You should be articulate and vocal about your beliefs – this will set the tone for your workplace.You should lay down strict standards for your employees to follow. An even hand and temperament will help you will retain employees long term.Have the ability to read people’s characters and skill levels effectively....

Following the Strategy when Building Your Business' Value

Tue, 13 Jul 2010 05:14:00 EST

JoAnn Lombardi VR President It’s funny how the strategic plans for most direct competitors of businesses are identical in most cases. Everyone determines correctly which client sectors are growing, services rising in demand and which dimensions of competition clients and customers demand – client service or innovation. But if every business in an industry knows what needs to be done to create more value, what is competition really about then? Competition comes down to who can best complete the work needed to be accomplished....

Creating Value for Your Business

Tue, 13 Jul 2010 05:02:00 EST

Peter King VR CEO If you own or are employed by a business, which aspect is the one paid the most attention? Client satisfaction levels, Strength of key client relationships,Employee motivation and energy,Levels of collaboration among staff,Financial results? If you answered like the majority of businesses out there, you said financial results. As a result, you’re not maximizing on the amount of revenue you could be generating for your business. Managing a business by focusing primarily on your financial results is like trying to win a basketball game by keeping your eye firmly fixed on the scoreboard....

Using Social Media to Your Advantage as a Franchise Owner

Mon, 24 May 2010 04:49:00 EST

JoAnn Lombardi VR President As a business franchise owner, you should use social media regularly. All types of businesses use social media now to communicate with new and repeat customers about new specials on products and services. Business franchises such as Quiznos and Pizza Hut use Facebook and Twitter to offer new promotions, talk about recent giveaways and special events for customers. Using such social mediums will bring you directly to your target audience. You can save money from paper and other physical forms of advertising if you are looking to buy a business franchise....

Investigate Your Financing Options When Buying a Business

Fri, 30 Apr 2010 05:20:00 EST

JoAnn Lombardi VR President One of the most important requirements when you buy a business is raising capital, which will require you to prepare a well-thought-out business plan. This is vital not only for when you are using capital to buy a business but also for budgeting initial operating expenses. Additionally, a business plan will help creditors to determine the maximum amount and terms of financing that will be made available to you....

Elements Needed to Become a Successful Business Owner

Fri, 30 Apr 2010 09:14:00 EST

JoAnn Lombardi VR President With any profession, there are certain characteristics that allow some people to excel over others that do not possess such traits. The business world is no different. There are key characteristics that allow business owners to make their businesses profitable, earn the respect of their employees and maintain success over a long period to where an owner can sell a business with a high resale value....

Deciding a Fair Price when Selling a Business

Thu, 29 Apr 2010 11:17:00 EST

Peter King VR CEO When you are looking to sell a business, there are many way to price that business, which your VR business intermediary can assist. Multiples of cash flow – Usually 1 to 3 times annual cash flow depending on the type and size of the business; Value of equipment and inventory – This includes one year’s cash flow;3 to 12 monthly gross sales – Depending on the type of business;Book value of assets....

Determining the Right Time to Sell Your Business

Wed, 28 Apr 2010 10:31:00 EST

Peter King VR CEO This is a hard question to ask, but only can answer it when it comes down to decidingtosella business. Some argue that you should sell when the business is doing well, which can give you the most control over the deal and maximize your profit. However, others argue that the owner should sell when the business is on a non-seasonal downward trend....

Don’t Forget to Run Your Business as You Prepare to Sell to a Buyer

Wed, 28 Apr 2010 09:27:00 EST

Peter King VR CEO One of the worst mistakes that you can during the process of selling your business is neglectingyour every day duties of running the business. It’s easy to get caught up spending so much time and energy in regard to business sale matters that it can result in a deterioration of both revenue and the resale value of your business. Remember that you will benefit in the end and receive better offers from prospectiveowners that are looking to buy a business through maintaining your inventory, maintenance of your business, advertising and keeping customer service levels high....

Why You Must Find a Qualified Buyer When Selling Your Business

Tue, 27 Apr 2010 05:38:00 EST

JoAnn Lombardi VR President Remember that even though you may find aspiring and established business owners that are looking to buy a business, they might not be qualified to buy your business. VR Business Sales will help you find the most qualified buyers to take over your business through our extensive global network. Your local VR business intermediary will consider a variety of factors to determine the most qualified buyer for owning your business: Buyer’s Capital; Source of the Motivation of the Buyer;Buyer’s Needs and Expectations;Buyer’s Background and Skills....

Deciding to Position Your Business for Sale

Tue, 27 Apr 2010 02:34:00 EST

JoAnn Lombardi VR President The realization is easy to forget, but small business owners do not live and breathe their businesses, they live and breathe their dreams that they have had since they were young. For the majority of business owners, their aspirations recently came to fruition when they were able to buy their businesses. Other business owners are purists that have seen their businesses develop and expand that they have enjoyed and cherished for years if not decades....

Mistakes to Avoid When Performing a Business Valuation

Tue, 27 Apr 2010 09:40:00 EST

JoAnn Lombardi VR President When you are preparing a valuation for your business with a VR business intermediary, do not attempt to embellish and create false numbers. This will only hurt your chances of selling your business to the right buyer. You want to be honest with your VR business intermediary. This means you need to avoid mistakes that over small business owners have made when trying to estimate their value. Projecting Unrealistic Cash Flow The most common mistake with performing a business valuation is unrealistic cash flow projections vs. the discount rate being used in the discounted future cash flow analysis....

Determining the Right Strategy for Your Business that You Buy

Thu, 22 Apr 2010 11:49:00 EST

Peter King VR CEO In order to determine the strategy that will work effectively after buying your business, there are five essential questions that will help you determine if you will able to implement and push you to prosperity and solidify customer loyalty. As a business owner, you cannot expect to answer these questions quickly, nor are the answers black and white. Evaluate the strategy that you want to follow with these five questions at least twice a year – even if the answers haven’t changed significantly....

System and Specializing Makes a Successful Franchise Business

Tue, 20 Apr 2010 04:45:00 EST

Peter King VR CEO Why do people buy franchises? Because the franchise is a defined and proven business format that offers any aspiring business owner the opportunity to run their own business with an established formula, training and support from the corporate headquarters. Franchising is about taking and building a concept that’s already been developed and duplicating. Franchisors such as Dunkin’ Donuts and Kentucky Fried Chicken standardized the presentation of their products and the services that go along with them – the core of the franchising format and why it’s successful....

The Main Two Methods of Valuating a Business

Thu, 15 Apr 2010 12:31:00 EST

JoAnn Lombardi VR President Whetheryou’resellingorbuyingyourbusiness,yourVRIntermediarywillperforma businessvaluation.Therearetwomethodsthatarenormallyusedinbusinessvaluations:MultipleofEarningsandDiscountedCashFlowApproach. MultipleofEarnings Thismethodcanalsobeusedwhenvaluingabusiness.Partiesdealingwithprivatebusinessesshouldalsorememberthatmostarelikelytobesubjecttoamuchlowerprice-to-earningsratiothanapublicly-heldcorporationbecausethesmallerbusinessdoesnotrepresentthesameliquidityasaninvestmentinpublicstock....

Different Ways to Financing Your Business

Thu, 15 Apr 2010 12:01:00 EST

Peter King VR CEO With the majority of businesses, financing to buy a business is going to be needed to both keep your business in operation if you have just bought it and/or if you’re looking to expand your business. Here at VR, we will offer advice and support to small and medium-sized businesses, providing some ways to raise capital if you’re looking to buy. Debt Financing With this way, the principal must be repaid with interest. However, this does not give the lender ownership control. Depending on what the loan is being used will determine the length of the loan, interest rates, security and other terms....

Financing When Buying a Business

Wed, 24 Mar 2010 04:24:00 EST

JoAnn Lombardi VR President In every situation where a bank lends money to a person, they intend to make a profit, not a loss. Remember that a bank is not a charitable institution but a business. To verify that a bank will be paid back, they will make sure that there is sufficient assurance thatthe person in question can not only repay the loan but has met similar financial obligations in the past....

Using a VR Business Intermediary When Selling Your Business

Mon, 15 Mar 2010 12:52:00 EST

Peter King VR CEO Apart from buying or selling your house, selling your business stands as one of the biggest financial steps that you will take. The reasons that a business owner sells are wide and varied – retirement, health, relocation, etc. Regardless of the reason, you will need to recruit a VR business intermediary in preparing, marketing and managing the selling process....

Advantages of Buying an Existing Business

Thu, 11 Mar 2010 03:58:00 EST

Peter King VR CEO There are many advantages to buying an existing business. Already Established Customer Base When you buy a business, you also buy that business’ customers. The more customers, the more that you will pay for the business.However, these existing customers will giveyour business an immediate cash flow and opportunity to improve on existing business relationships.Current Inventory You will usually receive whatever inventory is currently on the shelves or in the warehouse when you buy a business. This will give you an idea of what sells and what doesn’t....

Buying a Business Has Many Advantages

Mon, 01 Mar 2010 12:36:00 EST

JoAnn Lombardi VR President Many entrepreneurs believe that they need to start a business from scratch. But this does not have to be the case. Look at one of the all-time business owners: Howard Schultz. He did not start Starbucks. Instead, he initially worked for the business before leaving. After a time, he returned and bought the business. Most studies show that start-ups fail within the first few years of their existence, where as buying a business that’s already in existence is much more beneficial with less chance of failure. Buying a business means not having to deal with some of the inevitable pitfalls of a start-up....

Evaluating a Franchise

Mon, 22 Feb 2010 05:14:00 EST

Peter King VR CEO Franchisinghasbecomemorepopularandcommonplacewitheverypassingyear.AccordingtotheSmallBusinessAdministration(SBA), franchisebusinessesprovidemorethan8millionjobsintheUnitedStates.Thestrengthinthissectorisanoutgrowthofthemanyadvantagesthatareassociatedwithowningafranchisesuchas: Availabilityofcontinuedsupport; Trainingofpersonnel;Groupadvertising;Asoundandprovensystemforthatparticularbusiness. Thequestionisif franchisingisrightforyou?Oneofthefirstdecisionsthatyouhavetomakeisselectingabusinessconceptthatwillfityourcomfortzone.Oncethisisdone,youmustknowhowtoevaluateafranchiseanddetermineifitisrightforyou....

Buying a Business Instead of Starting One

Mon, 22 Feb 2010 10:57:00 EST

JoAnn Lombardi VR President Soyou’vemadethedecisiontoownabusiness.Hundredsofpeopleworktheirwaythroughthesamethoughtprocess,weighingthecostsandbenefitsofself-employmentversuscareeremployment.Yes,thereareriskstotakingtherouteofowningyourownbusiness;butwhenyou buyanexistingbusinessasopposedtostartingonefromscratch,youhavethebestoverallchancesfinanciallyandemotionallyofsucceeding.Theadvantagesto buyingabusinessarelessriskywhereyoualreadyhaveanongoingstreamofrevenue,whichallowsyoutofocusonlyhowtomaintainitandimprovethecashflow.Withanexistingbusiness,youarepurchasingaprovencustomerbase,steadysuppliersandhopefullyloyalemployees....

Doing a Business Valuation as a First Time Buyer

Fri, 19 Feb 2010 01:40:00 EST

JoAnn Lombardi VR President Everyentrepreneurthat’s buyingabusinessforthefirsttimeisfacedwiththechallengeofdeterminingwhatthefairpriceforagivenbusinessis.Whetherotherreasonablepartieswilldisagree, businessvaluationisequallybothanartandscience.Commonly,smallbusinessesarevaluedatamultipleofcashflowthatrangesfromone(x)tofour(x)times....

Choosing the Right Business for You as a Buyer

Fri, 19 Feb 2010 10:53:00 EST

Peter King VR CEO When you are looking to buy a business, it is important to find the right business first before worrying about the right price. Never base your search simply on finding a good deal because you will find yourself ultimately in a place that you don’t want to be. The price must be considered secondary to your personal preferences relating to how you want to spend your time and energy. Remember that you will be spending between 40 and 80 hours a week at the business you choose to buy....

Having Your Business Family Operated

Wed, 17 Feb 2010 05:37:00 EST

Peter King VR CEO When you are looking to buy or sell a business, a common area of dispute comes from involving family members. In some cases, some family members will contribute a great deal of work without being paid a single penny at the same time that others may be doing little or no work while receiving large sums of money or services.The first situation calls for reductions in SDC, where as the second calls for an increase, both of which entail somewhat arbitrary assessments....

When to Begin Due Diligence as a Business Buyer

Wed, 17 Feb 2010 05:20:00 EST

JoAnn Lombardi VR President The intangible that connects the right business to the right price is due diligence. This refers to the period of time during that the buyer is free to examine the seller and their business. Due diligence also refers to the efforts made by the seller to evaluate the buyer’s financial statement and resume – the latter is particularly important if the seller will be carrying a note from the buyer or if the seller is to remain on a long-term lease assigned to the buyer....

Asking Yourself the 7 Questions When Looking to Buy a Business

Wed, 17 Feb 2010 04:18:00 EST

Peter King VR CEO If you are looking to become a successful business owner, you need to be able to ask yourself if you have what it takes. First of all, if you are looking to buy a business just to be able to pay your bills and have no debt; then don’t bother moving ahead. When you make the decision to buy a business, your goal should be to become the leader in your industry, someone that is an expert at what they do in their field....

How to Approach Selling Your Business

Wed, 17 Feb 2010 03:02:00 EST

Peter King VR CEO When you are a selling your business, you must define exactly what is being sold to determine how to price and structure the sale, understand how the buyer will analyze the business sale opportunity and plan a win-win tone for discussion with that buyer. The overall value to the seller in a sale is the combination of the price and factors. Contributing to the Overall Value The form of the consideration received at the closing of the business sale (stock, cash, combination, etc....

Implementing an Identity for Your Business

Wed, 10 Feb 2010 12:47:00 EST

JoAnn Lombardi VR President All businesses have an identity, regardless of whether they control or effectively manage it. You can increase the efficiency of your business by concentrating on developing a desirable identity to project to customers, use as a tool to prove internal direction and orientate strategic development. Types of Business Identities Remember that a business identity program embraces and manages a valuable asset. There are three identity types that your business can be classified. Monolithic Identity The business uses one name and visual system throughout all of its interactions....

Identity’s Omnipotent Scope in Business

Mon, 08 Feb 2010 01:01:00 EST

JoAnn Lombardi VR President Every business has a unique identity that can be used as a valuable asset. Regardless of the size, all businesses currently face challenges to their identity from a myriad of areas. There are three problem areas regarding identity management. Ever-Similar Products and Services This has led to customers purchasing from businesses on an emotional basis – a projected sense of corporate personality and rapport can boost business....

Keeping Your Business Going Following a Natural Disaster

Thu, 28 Jan 2010 03:38:00 EST

Peter King VR CEO Especially, nowadays, it seems we can’t go long in our country without having some sort of natural disaster striking somewhere.It doesn'tif you don’t have earthquakes like California, hurricanes like Florida and the Gulf Coast, tornadoes like the Deep South and Midwest, blizzards like the Northeast and Rockies; you need to have a plan in place so you know what decisions you as a business owner will have to make when such an event happens without little or no warning. You want to be able to spend those first few days following the aftermath, dealing with the situation instead of determining how to move forward....

How to Approach the Selling Price of Your Business

Tue, 26 Jan 2010 03:34:00 EST

JoAnn Lombardi VR President The topic of what the business price should be is two-pronged. On one end, sellers should never a.) Be rushed on giving a price, b.) Consider buyers to be within reason for asking about it at any point in the discussion and c.) Be realistic if they expect to complete transactions. On the other end, buyers want to know what sellers arepractical when it comes down to what they want for the business....

Managing Disclosure When Selling Your Business

Tue, 26 Jan 2010 12:13:00 EST

Peter King VR CEO If you are looking to sell your business, you have to know that at some point in the sales process that someone inside or outside your organization will ask questions about your intentions – specifically, if the business is indeed for sale. The disclosure of appropriate information must be made to prospective buyers if serious discussions regarding the sale of business are to take place. Also remember that some discontent inside the business may be generated due to “unusual activity” and “visitors....

Importance of the Letter of Intent to Sell Your Business

Mon, 25 Jan 2010 05:20:00 EST

JoAnn Lombardi VR President Having to drafta written understanding of what both the seller and buyer think they have preliminarily agreed to is important as the point of referencefor due diligence and the preparation of definitive agreements in the sale of a business. Now most buyers are not interested in letters of intent because they may trigger a requirement for public news releases.Sellers especially don’t want to announce a transaction that could be derailed....

Having Clear and Effective Standards for Your Web Site Design

Mon, 25 Jan 2010 02:56:00 EST

JoAnn Lombardi VR President When you are putting together a web site for your business, you want to follow a particular pattern when someone is viewing that content. In general, people navigate and search in a certain way; therefore, you don’t want to have too many diverse sections when designing your web site....

Maximizing a New Strategic Alliance

Wed, 11 Nov 2009 05:05:00 EST

Peter King VR CEO In the 1990s, more than 60,000 strategic alliances formed. Out of these, half were joint ventures while the other were non-equity arrangements such as technology licensing agreements, joint marketing arrangements and research or development projects. The majority were international, meaning that the world’s largest multinational business such as IBM, General Motors and Philips used alliances. Most management teams emphasize developing and perfecting the ability to create and manage strategic alliances. If you cannot make effective use of alliances in today’s world, you will be at a serious competitive advantage....

Subjective versus Objective Problem Solving in Business

Wed, 11 Nov 2009 11:13:00 EST

JoAnn Lombardi VR President Unless you hate sweets, most people think chocolate is delicious. If you have a chocolate bar sitting on the kitchen counter, while you’re in the living room; it’s going to attract your attention, where ultimately you’re going to get up and grab it. It hasn’t moved, it can’t play mind games with you or put up banners saying, “Come here and have a bite!” Yet, chocolate can lure anyone’s attention between the ages of 6 to 86. Say you want to analyze how chocolate could be so delicious. In other words, use objective tools to understand subjective truths....

Always Keep Good Books

Wed, 11 Nov 2009 10:19:00 EST

Peter King VR CEO Have you ever wondered about the consequences when business owners don’t report all of the revenue that they’re creating? Business intermediaries know that buyers will only pay for what can be proven, so one ramification is the eventual selling price of the business will be lower due to the decreasing number of documented profits....

Creating Your Own Luck in Business

Mon, 09 Nov 2009 04:43:00 EST

Peter King VR CEO On top of having a strong marketing plan, great location, great product, established customer base as well as other factors; luck also has a hand in determining the success of your business that you’ve bought or built. There is such a thing as creating your own luck that can allow you to take your business to the next level; and set you up to sell at maximum value. However, there are some parameters to keep in mind when trying to accomplish this....

The Strategy of Actively Waiting

Mon, 09 Nov 2009 11:51:00 EST

JoAnn Lombardi VR President Any business gains a vital advantage when they seize a golden opportunity that can elevate them to not only the next level but the top of their industry - which will only help when the time comes to sell to a buyer. However, there is one small catch. Business owners neither can predict nor control the precise form, magnitude or timing of such things; and they can rarely open the windows that give rise to golden opportunities. Even a company as large as IBM couldn’t have affected the speed of Internet adaptation or halted venture capitalists from funding startups; there is simply no perfect set up to take hold....

The Importance of Evaluating a Franchise When Looking to Buy

Mon, 09 Nov 2009 11:20:00 EST

Peter King VR CEO Currently, franchise businesses provide millions of jobs in the United States due in part to the many advantages that are associated with owning one: Ongoing support, Personal training,Group advertising,Aproven system for running that type of business. For any potential business owner, the question comes down to ifrunning a franchisewill be the right fit. One of the first decisions that you have to make is selecting a concept that feels comfortable to you. Following this, you are going to need to know how to evaluate a franchise so that you will know if this is going to be the correct path to choose....

Is Buying a Home-Based Business Right for You?

Wed, 04 Nov 2009 02:40:00 EST

Peter King VR CEO Many people think about this all the time: the chance to combine both career and family life by working from home. But once you make the leap, the concern enters your mind: will you have trouble waking up in the morning without the need to drive to an office? If you have doubts already, then working from home will not be for you. While running a home-based business offers tremendous freedom and flexibility, it also requires a high degree of motivation, self-discipline and organization....

Seller Beware – Due Diligence Critical When Evaluating the Buyer for Your Business

Wed, 04 Nov 2009 11:42:00 EST

JoAnn Lombardi VR President Normally when the buying or selling of a business takes place, the buyer only performs due diligence. However, smart sellers know that it’s a two-way street. Let’s be honest, for both parties, it’s important to truly understand each other, to make sure that the other has a good head on their shoulders and everyone is on the same page. Most importantly, the seller doesn’t want to get burned....

Benefiting from the Digital Business Explosion

Wed, 04 Nov 2009 11:05:00 EST

Peter King VR CEO On average, the businesses that produce profit margins of more than 10 points higher and growth rates almost 20 points higher than their best competition are the ones that exemplify the digital business design. In other words, they integrate a smart business model with business-driven exploitation of digital options – e-business. These differences in results are staggering; and the gap may grow wider as the early advantages that these leading companies have gained by digital reinventors are consolidated and used as the basis for taking and holding even greater market share....

Franchising Your Business

Wed, 04 Nov 2009 09:38:00 EST

JoAnn Lombardi VR President Franchising is the technique for any business regardless of its size to expand its operation into other branches. This process is regarded as one of the safest means of accomplishing growth. However, it requires careful planning to be successful....

Creating the Right Exit Strategy for Reselling Your Business

Thu, 03 Sep 2009 12:27:00 EST

JoAnn Lombardi VR President People that own a business own more than just an establishment with four walls; they own a dream. For several owners, their business is an aspiration that just recently came true when they bought it. For others that have seen their businesses grow, they are pursuits that have been enjoyed and valued for years if not decades. However, dreams inevitably end; and owners have the option of either continuing to develop their businesses or passingthem on to someone who hasn’t yet experienced the fruits of ownership....

Importance of Planning when Buying a Business

Thu, 03 Sep 2009 10:14:00 EST

Peter King VR CEO Consideringthatbuyingabusinesscanbeascaryprocessforsome,hereat VR ,youarebestadvisedtodevelopabusinessplanthatcanhelpensurethatyouknowwhatyourgoalsareandhowtoachievethem.Inessence,abusinessplanisaroadmapthathelpsyoufocusonsomethingelsebesidesyourapprehension. willsitdownwithyouanddiscussthebestcourseofactionforoperatingasuccessfulbusiness;followingthetransactioneverystepoftheway.Meanwhile,herearesomepointstoconsider....

Implement a Strategic Plan to Help Make Your Business a Success

Wed, 02 Sep 2009 02:31:00 EST

JoAnn Lombardi VR President As we move further into the 21st Century, business owners have had to deal with an ever-changing economic climate that brought a barrage of new challenges with increasing sales. As a result, they have had to focus more intensively on strategic planning. This is the aspect of management that allows you to develop a strategy that addresses all probable contingencies. More importantly, this determines the best course of action to reach your goals, overcome obstacles and maintain a competitive edge regardless of the current economic state that will help sell more products for your business....

Having Your Business Stand Above the Rest

Wed, 02 Sep 2009 02:11:00 EST

JoAnn Lombardi VR President What gives one business an advantage of another? The ability to turn insight of a market into innovation; in other words, you have the knowledge that a competitor doesn’t have and use it to your advantage before someone else does. Just look at the leaders of such companies as Dell or EBay. These people had a pulse on the market due to being a part of it, seeing that the customer’s needs must come first. This mentality allowed all the pieces of the puzzle to fall into place as a result of this outside-in approach ....

What Not to Do if You Become a Small-Business Owner

Tue, 01 Sep 2009 10:23:00 EST

Peter King VR CEO Therearealwaysconcernsandreservationswhenbuyingabusiness.Particularly,there'sthequestionof"WhatifImakeabaddecisionwhilegoingthroughtheprocessormovingforwardafterthetransaction."Everyindustryisgoingtohaveitsownsetofpitfallsthatyouwanttoavoid.Hereareafewthingsthatyoushould NOT dowhenyou'regoingtobebuyingabusiness:SetUpanEqualPartnershipBusinessownersoftensharethestart-upresponsibilitieswithapartnerorpartners.However,sharing50-50orbythirdsorquartersisabigmistake.Conflictswillalwaysarisedowntheroad,andyouwillneedsomeoneinacontrollingpositiontomakeafinaldecision....

Knowing How to Correctly Valuate a Business

Tue, 01 Sep 2009 09:42:00 EST

Peter King VR CEO Determiningthevalueandsetpriceisoneofthemostimportantdecisionsthatyou’llmakewhengoingforwardwithbuyingorsellingabusiness.VRcanhelpyouwiththemanyconsiderationsthatyouhavetomakewhendoingavaluation.Ifyou’relookingtobuyorsellabusiness,VRwillprovideyouwithsolidandreliableassistance.EveryVRbusinessintermediaryishighlytrainedinbringingbothpartiestogethertocoordinatethenegotiationsandactivitiesofthetransaction.HereatVR,wecanprovideathoroughandaccuratevaluationofthecompanytoestablishthefairmarketvalueandpotentiallistingprice....

Striving to Make a Difference as a Business Owner

Wed, 19 Aug 2009 10:40:00 EST

JoAnn Lombardi VR President Considerthis synopsis: You’re an owner of a $30-million-a-year fee-based professionalservice business that grew 20 percent last year; but you’re frustrated with theresults. The issue isn’t a monetary or revenue issue, but a performance one,where your staff isn’t performing at the level it could be.You wantto motivate your staff who you feel are under-performing. The question is, “Howdo you do that, and have them do it throughout the course of the whole workday?”To answer that, you have to dig a little deeper as to why you do what you do for a living....

Generating Powerful Brands in Business to Sell Effectively

Tue, 18 Aug 2009 02:46:00 EST

Peter King VR CEO Manybusinessesrealizethatcreatingasuccessfulbrandfranchiseinvolvesmobilizingtheentireorganization.Everyaspectfromthepremisesthroughtheemployees’conduct(suchaswithcustomerrelations)tocompanyletterheadsandformalmarketingcommunicationsshouldreflectthevaluesofthebrand.Aleadingsupplierofaccountingandpayrollsoftware,Sagehasabrandidentitythatcommunicatesafeelingofconfidentcontrolthatleadstopieceofmind;unlikemostintheindustrywheremarketingtendstofocusonproductfeatures.MostcustomerswhobuySagesoftwarealsopurchaseanannualtelephonesupportcontract....

Importance of the Brand in Business

Tue, 18 Aug 2009 09:53:00 EST

JoAnn Lombardi VR President What is a brand?It is the difference between a bottle of sugared, flavored,carbonated water and a bottle of Coca-Cola . A brand is the sum of the functional andemotional characteristics (both tangible and intangible) that a consumer attributesto a product or service a business creates and sells. These characteristics are embodied in a name,trademark, symbol or design or any combination of these.This is a powerful form for any business that allows them to separate themselves from the competition....

Creating More Profitability for Your Business

Mon, 17 Aug 2009 03:17:00 EST

JoAnn Lombardi VR President Everybusiness is always finding ways to increase their profit. Generally, there are afew ways that this can be done: Conducting a Market Analysis; Increase sales volume;Reducing and/or ensuring that costsare fully recovered; Improving the product mix – varyingthe relationships between the volumes of individual products or groups ofproducts sold; Raise prices for select goods oroverall;Reduce the capital needed foremployment in the business....

Focusing on Organic Business Growth

Mon, 17 Aug 2009 10:02:00 EST

Peter King VR CEO Businessesexist in a rapidly-changing environment that can and will lead to radicalresponses and strategic planning. There are many challenges that oneorganization can have with the daily grind of responsibilities that despiteattempts to push forward, the shareholder value drops. Therefore, the solutionlies not to focus on improving the current situation but rather in taking thenecessary steps to realize what it takes for a business to succeed in sales....

Choosing the Proper Business Entity to Buy a Company

Thu, 13 Aug 2009 11:39:00 EST

Peter King VR CEO If you’re a company owner that’s buying another business to operate, there are some options that you can consider when proceeding. TYPES OF ACQUIRING ENTITIES Normally, there are four basic types of entities that can be used to buy and operate the business of the acquired corporation: C Corporations; S Corporations;Partnerships – General or Limited;Limited Liability Company (LLC) – a hybrid entity authorized in 1988 by the IRS that offers the legal insulation of a corporation and the preferred tax treatment of a limited partnership, which all 50 states and the District of Columbia allow....

Asking for Referrals from Prospects to Elevate Your Business

Tue, 11 Aug 2009 03:27:00 EST

Peter King VR CEO So, you’vemet new people, focused on their interests and how you could add value to theirlives – but not yet through buying your business products or services. Therelationship should be at the point now where they feel good about you – theyknow, like and trust you; open to doing business with you directly or at leastreferring you to others that could provide you with more sales.If theperson is a direct prospect, make the appointment. Once you’ve helped them buythe appropriate products or services, ask for referrals....

Dealing Effectively With Computer Viruses in Your Business

Mon, 10 Aug 2009 12:09:00 EST

JoAnn Lombardi VR President ComputervirusesarealwaysathreatontheInternet;therefore,theywillbeathreattoyourbusiness.Whetheryou’rebuilding,abouttobuyorsellone;today,youcangetoneaseasyasvisitingawebsiteoropeninganemail. TypesofViruses Whatacomputervirusdoesisattachitselftofilesonyourharddrive,beforereplicatingitself.ThesecaninfectallsortsoffilesonyourcomputerfromprogramsandsystemfilestoWorddocumentsandHTMLfiles.WiththeInternetnow,virusescanspreadwithastonishingspeed. TrojanHorse Thesepretendtoserveausefulfunctionsuchasascreensaver;however,itcarriesoutamoresinisterpurposeonceyourunit....

Following Up on Your New Referrals

Thu, 06 Aug 2009 05:06:00 EST

JoAnn Lombardi VR President Sayyou’veattendedaconference,eventortradeshowandyou’vejustfinishedmeetingsomenicepeoplethatmaybeprimecandidatesforbusinessreferrals.Andyoudidthiswhilenothittinganybodyovertheheadwithyoursalespitchregardingyourproductsandservices.Instead,youfocusedonthem,askedquestionsthatmadethemfeelgoodaboutthemselvesandintroducedthemtootherpeoplethatyou’vemet.Throughthislow-keyandunassumingapproach,youpositionedyourselfasa“center-of-influence.”Youestablishedagreatstarttoarelationshipwithyourprospects....

Knowing When You’re Ready to Own a Business

Wed, 05 Aug 2009 03:03:00 EST

Peter King VR CEO Theideaofbecomingyourownbossisalwaysappealingasmillionsofpeoplehavetriedandlikedit.Howyoudetermineifyouarereadytobecomeoneyourself?Whatarethechallengesofbuyinganexistingbusinessthat’sforsale?Therearetenquestionsthatyouneedtobeabletoaskyourself: DoIthriveonriskandchallenge? Doyouwantthefreedomandresponsibility? Nothavinganyoneoveryoumeansthatyouwillbethepersonwhoreceivesallthe acclaimforthebusiness’success and scrutinyforitsfailures. Whataremyreasonsforbuyingabusiness?Therehastobeaclearmotivationthatyoumustthinkoutcarefully....

Building Upon Your Referral Relationships for Your Business

Tue, 04 Aug 2009 02:58:00 EST

JoAnn Lombardi VR President So you’re at a conference,trade show or event and have met a contact that would be a great contributor toyour business in some shape or form. You’ve established initial rapport; letthem talk about themselves and their business instead of you pitching yourintentions. By the time that you received their business card at the end, theywere impressed with you to where the follow-up meeting will make for anexcellent situation to take your new relationship to the next level.But before that happens,there are a few things to remember when you end the first conversation....

Farming a Continual Network of Referrals for Your Business

Wed, 29 Jul 2009 12:03:00 EST

Peter King VR CEO Like any farmer, as a business owner, you want to be continually planting seeds to further develop your network. If you are harvesting your latest crop of potatoes, you want to be preparing for the next sowing. You’re not going to sit and not grow anything further while other farmers are already at work for the next season. You need to be ahead of the game. You need to have this mentality as a responsible and bona-fide business owner. Sure, you may be committed to your customers and clients, constantly looking for better ways to serve them....

Due Diligence in Knowing Internet Laws and Regulations for Your Business

Tue, 28 Jul 2009 11:53:00 EST

JoAnn Lombardi VR President Regardlessof the business that you are in, you must know and understand the various lawsand regulations that apply to the Internet. Not only do you want to pay attention to any copyrighted and trademarked material that you may have on your web site without proper consent, you want to give due diligence to a variety of other factors: The various types of web sites ; Libelous contentLegality of selling certain types of products on a web site....

Recognizing Copyrighted and Trademarked Material on Your Business Web Site

Tue, 28 Jul 2009 10:16:00 EST

Peter King VR CEO No matterwhat the kind of business that you are in and products that you sell; if youhave a web site, you need to be aware and able to address all the legal issuesthat you could be privy to in a court of law. These comprise of various typesof digitized content such as graphics, text, images, music and coding. Assuming What Content is Protected Web siteowners have to assume that all content is protected ether by copyright or moralrights. Copyright protection disallows its inclusion in anotherweb site without that business owner’s permission....

Having a Systematic PR Plan Will Raise Exposure for Your Business

Thu, 23 Jul 2009 05:25:00 EST

Peter King VR CEO In orderto use public relations effectively for your business, you need to learn toanticipate the company's future. Regardless of if you want to sell yourbusiness or where your product or service is positioned, you need to be able todefine potential problems and adopt a strategy to evaluate customer feedback.This will put you on the road to a more successful and profitable business inthe long term.By itself,a systematic approach to public relations doesn't guarantee a successfulprogram for your business, but certainly the technique forces you to identifyyour goals, expectations and express them in a clear and succinct manner....

Why Behaving Ethically is Important for Business

Wed, 22 Jul 2009 10:16:00 EST

JoAnn Lombardi VR President It’s notunusual to look in the newspaper or on the Internet any day of the week to findat least one business scandal that has taken place. It’s not shocking forpeople to read about how a corporation such as Enron violated the rules of engagementthat’s accepted by society. Whether company finances have been manipulated inorder to secure a business deal, child labor has been used to assemble aproduct, discriminatory practices have prevented the employment or promotion ofmembers of a particular group; businesses regularly behave unethically....

The Make-up of a Successful Business Owner

Tue, 21 Jul 2009 09:41:00 EST

Peter King VR CEO With anyprofession, there are characteristics that allow certain people to excel intheir business over others who do not posses such traits. The world ofentrepreneurship is no different. There are key characteristics that allowbusiness owners to make their companies profitable, earn the respect of theiremployees, and maintain success over a long period through selling theirproducts and services. It’s the reason why those owners will be able to selltheir businesses for the maximum value in the long-term....

Why Public Relations is Important in Business

Mon, 20 Jul 2009 10:28:00 EST

Peter King VR CEO All of uswould agree that investing in creating a strong, credible image for ourbusiness is a worthwhile endeavor. We also know that long-term,business-building advertising and marketing activities are absolutely necessaryfor sustaining the effective business sales.However, manyof us are not aware that our secret weapon in this continuous game of attractingnew and repeat customers is public relations. This is due to the fact that people’sattitudes about businesses and buying those products are more affected and prone to change bypublic relations than advertising....

Dealing with the Ethical Saga in Business

Fri, 17 Jul 2009 10:59:00 EST

JoAnn Lombardi VR President Given theincreasing social impact of business, ethics has emerged as a discrete subjectover the last 20 years. Business ethics is concerned with exploring the moralprinciples by that we can evaluate business organizations in relation to theirimpact on people and the environment. Thereare four types of ethical problems that are common in business organizations - human resorting, conflicts of interest, customer confidence and misuse of corporate resources. Human-Resorting Ethical Problems Theserelate to the equitable and just treatment of current and potential employees....

Why You Need to Understand Legal Issues in E-Commerce

Thu, 16 Jul 2009 09:22:00 EST

Peter King VR CEO Inanye-businessstrategy,itisimportanttoaddresscomprehensivelythekeylegalissues.Atabasiclevel,thesearematterssuchascopyrightandlibel;atamoreadvancelevel,suchthingsasrestrictionspertainingtothesaleofyourproductwithinparticularjurisdictionsthatrequiresattention.WhenaddressinglegalissuesontheWeb,keepthefollowinginmind: PreventionisBetterthanaCure Establishingasoundlegalstructureearlyonismucheasierthantryingtofirefightlegalproblemsastheyoccur.LegalsystemsareTakingHoldontheInternetMoreandmorelawsarebeingpassedthatdealwithdoingbusinessonlinethaneverbefore,especiallyintheUnitedStatesatthefederallevel....

Mistakes to Avoid When Approaching E-Commerce Law

Thu, 16 Jul 2009 09:07:00 EST

JoAnn Lombardi VR President Many smallbusiness owners will make some serious errors in regards to paying attention toe-commerce law. Knowing the key legal issues such as copyright and libel torestrictions regarding product sales is imperative for you to know that willkeep you from having to enter a courthouse. From thinking the law is too complex or that it doesn't apply to your business to procrastinating when hit with a libel suit,owners too often make the mistake of ignoring the issues that fall on their doorstep thatcan come back and haunt them severely....

Determining the Right Selling Price for a Dry Cleaning Business

Wed, 15 Jul 2009 10:35:00 EST

JoAnn Lombardi VR President According to the International FabricareInstitute, dry cleaning businesses are currently selling for a multiple of 70-100% of the gross sales. The correct percentage touse is often determined by the age and condition of the dry cleaningequipment. They generally havea lifespan of approximately 20 years.So that starting with 100% for equipment of 5 years of age or less theprice might logically be discounted as the age approaches 20 years. Please consult a VRBusiness Intermediary for more details....

Avoiding the Top Five Most Common Business Scams

Tue, 14 Jul 2009 09:39:00 EST

Peter King VR CEO Scamartistshavebecomemoreadeptatexploitingtheweaknessesofsmallbusinesses.Whilesomeofthesebusinessscamsaregoldenoldies,they’restillputtingmoneyintothescammer’spocket–effectivelytakingitoutofthepocketsofmanysmallbusinessowners.Thebestdefenseagainsttheseisawarenessandvigilance.Herearefiveofthemostcommonsmallbusinessscamsandhowtoavoidthem: 1.AdvanceFeeLoanScams Whetherit’sofferedinanewspaperad,ontheinternetorbye-mail,thisscamoffersmoneyatreasonablerates–ifyousendthemmoney.Theymaysaytheyneedthemoneyforinsurancepurposesortogetthemoneyacrosstheborder....

What Holds a Business Owner Back from Offering Seller Financing

Mon, 13 Jul 2009 10:07:00 EST

Peter King VR CEO Many sellers do not understand the value to both thebuyer and seller when it comes to presenting an offer to finance a part of their business. Perhaps a competent broker has not explainedthe market as it exists today to them. On the other hand, there are a few situations that require mostly or all cash in an offer. In most areas, debt on assetsmust be paid at the time of closing. A business witha large debt may not be able to finance as large sums of cash will be requiredto be paid at the time that deal is finalized....

Franchising Your Business

Thu, 25 Jun 2009 12:15:00 EST

Why a Buyer Needs to Submit a Personal Financial Statement

Tue, 23 Jun 2009 10:53:00 EST

Peter King VR CEO First,aVRbusinessintermediaryhasmanylistingsthatareavailableinallsizesandpriceranges.He/sheisoftenabletousehis/herexperiencetoassistabuyerinfindingadditionalsourcesofmoneythatcanbeusedforasale.Additionallyourcontractualagreementswithbusinesssellersrequirethatnobuyerwillbeintroducedtotheirbusinessuntilhe/shehasdemonstratedtheabilitytomakethatsale.Apersonalfinancialstatementisthetoolusedtomakethatdetermination....

Obtaining a Great Return from a Venture Capital Investment

Tue, 23 Jun 2009 10:44:00 EST

Peter King VR CEO Anyprivateequityorventurecapitalinvestorwillseekahighreturnonitscapital.Theydon’tpurchasedebtinstrumentssimplytoobtainayieldoninterest.Onthecontrary,themaingoalofPE/VCtransactionistoobtaingeometricreturnswhensuccesshashappenedfortheportfoliobusinessthatresultsindramaticriseintheircommonstockvalue....

VR Welcomes New Owners

Tue, 26 May 2009 10:54:00 EST

JoAnn Lombardi VR President It is an exciting time for our company as we welcome several new owners that have joined VRdomestically and internationally. These new additions to VR will helpelevate us to the next level of business sales. Jay Cremer - North Fort Lauderdale, FL; Brad Elliott - New Jersey; Omar Garcia - San Antonio, TX; Larry Lane - McKinney, TX; Joe Perlman - St. Petersburg, FL; Joel Soorenko - Naples, FL; Angel Redondo Vega, Juan Carlos Redondo Vega - Valladolid, Spain; Juan Jose Velazquez Goya - Navarra, Spain; Jose Maria Varas Garcia, Daniel Cardenas, Jose Antonio Rodero - VR Mergers & Acquisitions, Madrid, Spain....

Distinguishing Private Equity/Venture Capital Investing from Others

Tue, 26 May 2009 10:48:00 EST

Peter King VR CEO There area few features that distinguish PE/VC investing from other types when buying a business. It’s important to pay attention to these differences. Knowingthese facts will save you from a lot of wasted time and frustration and avoidgoing down the wrong path. Active Involvement in OverallInvestment Process The PE/VCprofessional will be actively involved in identifying the investment,negotiating and structuring the sale and monitoring the portfolio businessafter the investment has been made.Often, thatperson will serve as a board member and/or financial advisor to the portfoliocompany....

Why a Buyer Can Withdraw Their Earnest Money Deposit Following Due Diligence

Tue, 26 May 2009 09:35:00 EST

JoAnn Lombardi VR President A buyer’s earnest money deposit isto assure that he or she will complete a transaction after agreeing to do so.Thenature of an offer to purchase a business, as opposed to real property, isthat the seller builds certain contingencies that allows the buyerto prove the facts presented.Some of these facts may be: Are the presented financial documents correct? Can I obtain the lease that I need? What happens if Icannot receive the needed outside financing? Once these questions are answered to the buyer's satisfaction, he or she will removethem in writing from the offer....

What Makes Up the Private Equity and Venture Capital Investment Community

Wed, 20 May 2009 11:38:00 EST

Peter King VR CEO Thecommunity that composes private equity and venture capital investing iscomposed of merchant banking subsidiaries or divisions of large institutions.Theseinclude: Bank Holding Companies; Insurance Companies; Large Industrial Corporations; Investment Banks. Inaddition, there are many free-standing specialized investment bodies that formsolely for PE/VC investments. Some of these include publicly or privately-heldSBICs, publicly-held BDCs or privately-held funds formed to make suchinvestments such as partnerships or LLCs....

Questions that You Have to Ask Yourself When Looking to Buy a Business

Wed, 20 May 2009 09:28:00 EST

Peter King VR CEO Changing economies always make both potential buyers and sellers nervous. If you're looking into buying a business, this is what you have to ask yourself: Will this business continue to be attractive to customers in the future as it has been in the past? If the answer is yes, you can consider a business' performance over the last three years to determine the viability of your intended purchase. If one has three or more years of profitable performance, this will be a successful product/location mix. You need to decide if the product will be viable in the future, and if so, the location should also maintain its strength....

Avoiding Common Mistakes When Valuating Your Business

Mon, 18 May 2009 12:46:00 EST

JoAnn Lombardi VR President Asimportantasvaluatingyourbusinessisbeforeyoudecidetosell,youdon’twanttorunintomakingsomecommonmistakeswhenyou’retryingtoestimate.Makesurethatyoupayattentiontothemanyfactorsthatexistifyouaregoingtobeselling.Specifically,youwanttoavoiddoingthefollowing: ProjectingUnrealisticGrowth Thisisthemostcommonmistakethat’smadewhenabusinessdeterminestheirbusinessvaluation.Ifyouareprojectingaggressivegrowthwithoutanysupportfrommarketresearchandanalysis,acompanycancarryhighriskfactorsthatcouldpromptanincreaseinthediscountrate-requiredrateofreturn....

Finding the Businesses that are Ripe for Buying

Mon, 18 May 2009 09:41:00 EST

Peter King VR CEO A business is going to be more valuable to you as a buyerwhen the synergies, economies of scale and other integration benefits can beachieved. You can determine which ones are in the right condition to acquirewhen you look at the following characteristics: High Potential for Growth – A buyer is going to look for a business that has a high historical orpotential growth – companies with new products and services and in a newmarket.Specialty or NewProducts – The business that you’re targeting has a product or service thatis new to the market or has a significant advantage over the competition....

Choosing the Business that’s Right for You

Thu, 14 May 2009 09:52:00 EST

JoAnn Lombardi VR President Whenyou’vedecidedtogointoownership,youneedtoknowwhattypeofbusinessthatyouwanttopursue.Youshouldstartbyidentifyingtheproductsandservicesthatyouintendtodeliver.Youcaneasilynarrowdownyourchoicesbylookingatthefollowingfactors: ResearchingCosts Examinethecostsofbusinessesindifferentindustriesandregions.LookintoImportedGoodsIdentifywhichgoodsandservicesthatlocalcompaniesandotherorganizationsbuyfromoutsideyourarea.ExploreSellingAlready-ManufacturedGoodsLookintothepossibilityofsellinggoodsmadebyothers....

A VR Intermediary is the Best Source of Educating Yourself on Owning a Business

Tue, 12 May 2009 02:46:00 EST

Peter King VR CEO When you're buying a business for the first time, you're going to feel a little apprehensive. It's a major step for anyone that decides to go into ownership for the first time. However, you don't need to go to school to educate yourself because here at VR, we can guide you every step of the way. In almost everycase, the former owner agrees to train you in the successful operation of that particular business. You won'thave to be concerned with the risk of receiving outdated or irrelevant informationfrom a school textbook when you can learn straight from “the horse’s mouth....

Appraising Your Business’ Intellectual Property

Tue, 12 May 2009 02:31:00 EST

Peter King VR CEO Intellectual property has become a hot topic. Make nomistake that patents, trademarks and copyrights can become a valuable asset inthe portfolio of your small business, and should be managed prudently.It’s always an ongoing and daunting question for a businessowner to face when the time comes to sell – “What do I have to sell?” Believeit or not, the main asset that you have to market is goodwill aside from thephone number, address and equipment. Yet defining goodwill can be difficult to identify and value....

When to Apply Restrictions and Prohibitions in the Business Deal

Thu, 07 May 2009 09:10:00 EST

JoAnn Lombardi VR President When negotiatingthe sale of a business, it’s not uncommon for both the buyer and seller to missputting much thought into the post-close conditions and terms. Obviously, bothparties want to protect themselves against potential harm that either couldinflict. However, this topic can be overlooked when so much time is spent onthe actual transaction.The factis the buyer is going to have concerns about the seller possibly taking awaythe goodwill that they’ve created. The seller will want to know what activitiesthat they will be able to engage in without the threat of legal action....

Considering Whether to Own a Business

Wed, 06 May 2009 09:58:00 EST

Peter King VR CEO It’salwaysabigdecisionwhenyoudecidetogointobusinessownership.Therearemanyvariablesthatcomeintoplaythatyouneedtoconsiderbeforetakingthisstep.Noteverypersonoutthereiscutouttobeone.Somehavetheattributesandqualitiesnecessarytobecomeasuccessfulentrepreneurwhileotherscanhittheskidswithinsixmonths.Youneedtoaskyourselfwhatareyoulookingforbygoingintoownership–freedom,fortune,achancetoleavethecorporatestructurebehind,travelopportunities,abilitytomeetpeople,lessormoreresponsibility.Whatdoyouwanttoachieve?Areyourunningawayfromsomethingprofessionallyorpersonally?Writedownyourrequirementsdownonpaperandberealistic....

Preventing Buyers from Foregoing Later Payments to the Seller

Wed, 06 May 2009 09:46:00 EST

Peter King VR CEO EveryVRbusinessintermediarycarefullyscreensverypotentialbuyerswellinadvanceofevendisclosingtheexistenceofabusinessopportunity.Onlywhentheintermediaryissatisfiedwillabuyerlearnthatabusinessisforsale.AVRprofessionalintermediary’strackrecordisexceptionalwithasuccessrateofwellover96%.Inadditiontothescreeningprocess,considertheamountofthedownpaymentandthebuyer'screditreport.Noonewillwalkawayfromasubstantialinvestmentwithouttheirverybestefforts.Alwaysrememberthatyoushouldhave,assecurity,notonlythebusinessbutthebuyer'spersonalguaranteeaswell....

Following the Correct Path to Selling a Business

Tue, 05 May 2009 02:51:00 EST

JoAnn Lombardi VR President The timealways comes when you decide to sell your business. You may have not thoughtabout it when you were looking to buy, but this situation happens all the time:the once-in-a-lifetime opportunity becomes a financial and psychologicalalbatross that you seek to have someone else take over. The Right Time to Put the Businesson the Market Frequently,an owner allows blind devotion and optimism, inaction or a combination of thethree to keep from offering their business for sale until it’s too late....

Enhancing Your Mailing List Increases Your Campaign Effectiveness

Tue, 05 May 2009 11:57:00 EST

JoAnn Lombardi VR President Gettingthe mailing list right is vital. Basic mailing lists simply include names,addresses, job titles, and telephone numbers of customers and prospects. Thebasic list can be refined by adding information about buying patterns,lifestyle, and many other factors. This will provide a comprehensive picture ofcustomers and prospects. Verify All Internal Sources ofInformation Yourcustomer records are probably your most valuable asset as they invariablygenerate the highest response rates when they are mailed with relevantinformation....

How to Prepare Your Business for a New Owner in Two Years

Mon, 04 May 2009 02:23:00 EST

Peter King VR CEO Today,abuyersneedsconfirmationofthebusiness’financialstanding.Thismeanssolidandverifiedfinancialdocumentsbyanaccountingfirm.Themostvaluableonescomefromupdatedandcorrecttaxreports.Youshouldn'tbeinsultedifapotentialbuyerasksyoutovalidateyourrecordsasheisonlyshowingduediligence.Additionally,theappearanceofyourbusinessisvital.Buyerslikewell-maintainedequipment,cleanfacilitiesandcurrentinventorythatcanbesold.Youwantthebuyertohaveaneasyandpositivedecisionbyshowingthatyourbusinessisaprovenmoney-makingmachine....

How Much a Buyer Should Put Down When the Seller Offers Financing

Thu, 30 Apr 2009 03:05:00 EST

Peter King VR CEO Generally,mostpotentialbuyersintoday’smarketdeterminehowmuchcapitaltoputdownonabusinessthroughofferingadownpaymentbetweenonethirdandhalfofthepurchaseprice.Formanybusinesses,thismeansapproximatelyoneyear'sworthofadjustedcashflow.However,pleasekeepinmindthattherearecaseswheretheselevelsofdownpaymentwillnotcleartheexistingdebtinthebusiness.Itisinyourinterestthatthecompanybetransferredfreeandcleanofdebt,sotakethisintoaccountwhenyoucalculatetheamountthatyouwillputforth....

Buying and Selling Business in the Middle Market

Thu, 30 Apr 2009 02:46:00 EST

Peter King VR CEO VRdefinesthemiddlemarketasarealmofbusinessesthathavegrownbeyondsinglemanagemententitiestosignificantregionalornationalstaturewithrevenuesbetween$10millionand$200million.However,themajorityofthemiddlemarketismadeupofbusinessesthatarebuiltaroundasingleproductareaanditsnaturalextensions.Normally,theyarenotcomprisedofmulti-marketcorporationswithagroupofdivisions.Therefore,theenterpriseisanintegralunitthatdoesnotlendittobeingsoldinpieces. VariousTypesofOwners Mid-marketbusinessownerscancomeinavarietyofdifferenttypes....

Enhancing Direct Mail Response Will Bring More Revenue

Tue, 28 Apr 2009 03:32:00 EST

JoAnn Lombardi VR President Thesimplest and most immediate measure of a direct marketing campaign for your business is theresponse level that it achieves. Many different factors can affect these rates,so it is important to test all the variables before committing all yourresources to this particular approach. Also keep in mind that you must aim fora realistic figure that is within your budget.Rememberthat your response rates will be greater when you define your target market asprecisely as possible. In addition, you want to make it easy for your prospectsto respond....

The Importance of Going with a VR Business Broker Over One That Specializes in Real Estate

Tue, 28 Apr 2009 11:37:00 EST

Peter King VR CEO Business brokerage is a highly-specialized field that's comprised of well-trained andexperienced professionals. Most people don't know that there arenumerous differences between selling real property and an ongoingbusiness.Here at VR, we understand how to perform cash flow analysis that will best benefit our clients, maintain complete confidentiality, advertise for results andadvise the seller in such vital areas as pricing, terms, offer structure,negotiations, legal issues, and business enhancement prior to offering abusiness for sale....

How to Finance Buying a Business

Thu, 23 Apr 2009 10:40:00 EST

Peter King VR CEO In this dayand age, more people that have found themselves out of work are going intoentrepreneurship, specifically buying an already existing business. What youmay not know is that obtaining the necessary funds is easier than you think; youjust need to be aware of the options that you have available. Stay Clear of the Bank In mostcases, you won’t be able to find funding from traditional lenders such as banks.They are not business or client friendly, no matter how much they may advertiseotherwise.Thedecision on their end has nothing to do with the amount of experience that youmay have or your current relationship with them....

Keeping Good Business Records

Thu, 23 Apr 2009 10:02:00 EST

JoAnn Lombardi VR President At least once a year, you should be doing an analysis ofyour business to make sure that your books and records are in workingorder. It’s not only good to see the progression of your company but to verifythat both your accounts payables and receivables are in the black if youdo decide later about selling.Specifically, you should be paying attention to profit andloss statements (P&Ls) when analyzing your business. Make sure that you are able toaccount for all the income that your business has earned as well as allincurred expenses....

When to Disclose Financial Records

Wed, 22 Apr 2009 09:39:00 EST

Peter King VR CEO Justas you would not want your personal financial documents made available to thepublic, business owners only want serious buyers to have access to information such as their accounting books and records. Disclosure of such information does not occur until much further into the selling process, depending upon the progress. Even when such information is brought out into the open, the party in question will have signed a non-disclosure agreement. We here at VR willprovide you with summary information including gross sales, lease informationand cash flow....

Showing Due Diligence with Intellectual Property

Tue, 21 Apr 2009 02:13:00 EST

JoAnn Lombardi VR President With everincreasing frequency, intellectual property has become a bigger part of M&Atransactions. Intangible assets such as patents and proprietary industrialdesigns have grown quite significant. In some cases, they’ve become moreimportant than physical assets when determining a value of a business.Mostlikely, if you are in negotiations to sell your business to a potential buyer,the deal that’s being put on the table includes clauses that will give themaccess to your intellectual property.Therefore,due diligence is incredibly important on both sides of the coin, and must bedone with great care and detail....

Protecting the Business from being disclosed by the Public when on the Market

Mon, 20 Apr 2009 12:41:00 EST

Peter King VR CEO Here at VR, we work with the problem of protecting a business that’s for sale from being disclosed to the public daily. We require that every prospective buyer sign a non-disclosure agreement stating that he or she will not make available any proprietary information learned about that business to others. In addition, all advertising is completely generic in nature; therefore, no business’ name, location or any other identifying data will ever be revealed. Remember that no individual seller can maintain complete confidentiality while feeling out a potential buyer....

Offer Seller Financing when Putting a Business on the Market

Mon, 20 Apr 2009 12:21:00 EST

JoAnn Lombardi VR President If you’re deciding to sell a business, there are a number of questions that you need to consider. Seller financing is the most important one that you should be answering “yes” to after reviewing all the advantages. Greater Chance of Selling Your Business When you agree to terms, a business has a greater likelihood of selling than in an all-cash scenario. A buyer can purchase with limited funds when a business for sale is offered with terms. Although, a few buyers may have the required funds, there are many more out there that can afford to put 30 to 40 percent down on a business....

Calculating the Maximum Price and Necessary Terms for Your Business

Fri, 17 Apr 2009 10:04:00 EST

Peter King VR CEO We here at VR Business Brokers are well schooled in calculating the maximum price and correctterms that are necessary to successfully market your business. There are many methods that are employedincluding cash flow, industry averages,current area trends and asset values.Because a VR business broker lives and breathes in the market that your business operates, that personwill be best equipped to advise you on the ideal situation to position your business to receive the best possible return....

Obtaining a Fair Market Price when Selling Your Business

Wed, 15 Apr 2009 11:30:00 EST

JoAnn Lombardi VR President Businessowners face a myriad of challenges on a daily basis. One challenge that noowner wants to grapple with is financial distress. If you’ve struggled with suchproblems as declining profits, rising costs, fierce competition with no signthat the situation will improve, selling may be the best solution. There aresteps that you can take to help maximize your business’ value and get arelatively fair sale price. Valuating Your Business It’s neveran easy decision to sell your company between the time and emotionalinvestments alone....

Industry Rules of Thumb Tell Only Part of the Story with Business Valuations

Mon, 13 Apr 2009 02:19:00 EST

Peter King VR CEO Rules of thumb can serve as useful sanity checks for controlling interests that are generally valued using more technically sound methods. However, they should not be used as the sole method of business valuation for a few reasons: Based on Unreliable Word of Mouth Rules of thumb have always been largely based on folklore or word of mouthand notproven data and in-depth statistical analysis. Therefore, it should be takenwith a grain of salt, and never solely used to base your entire valuation....

Better to Sell Your Business to a Strategic instead of a Financial Buyer

Mon, 13 Apr 2009 11:25:00 EST

JoAnn Lombardi VR President During a period of economic uncertainty, many entrepreneurs love to hear reports of businesses being sold to strategic buyers for apparently large sums. The truth is the investors that are strategically-inclined will recognize higher valuations with potential investments than those that are financially-oriented venture capitalists. Additionally, strategic investors can provide validation for financial investors, and influence them to recognize a higher valuation. Strategic vs....

Awareness and Accolades Highlight VR's 2009 Regional Meeting in California

Thu, 09 Apr 2009 02:19:00 EST

Peter King VR CEO VR took over the Shoreline Yacht Club in Long Beach, California for theirRegional Meeting. Action, awareness and awards were the three keywordsfor this event that saw a tremendous amount of excitement, interest andinvigorating motivation in increasing more business transactions.I partook in the proceedings to help generate fervorfor creating and enhancing existing content for the VR office andbusiness-for-sale websites as well as other marketing material providedin the VR WebManager and Today's Business Owner ....

Setting the Record Straight on Business Valuation

Thu, 09 Apr 2009 12:42:00 EST

Peter King VR CEO Many people can become incredibly confused about understanding what business valuation means. Many misnomers exist regarding the subject, which canbe a complex financial discipline that consists of unintelligiblejargon, reason and underlying mathematics to any outsider who maybe looking to buy or sell. Therefore, let’sreveal the truth behind afew myths of business valuation. 1.) Net income and net free cash flow are identical First of all, there is nothing remotely similar to these two concepts. Net income includes a deduction for depreciation expense that many small businesses base on accelerated tax schedules....

Preparing Your Business for a Buyer's Visit

Thu, 09 Apr 2009 11:26:00 EST

Peter King VR CEO Believe it or not, some business owners will take a qualified buyer’s visit toolightly to the point where they only see it as a quick meet-and-greet before pushing him or her outthe door that he or she came in. This cannot be stressed that a buyer visit has to be taken very seriously for a number of reasons if you want to move closer to a deal and check.A visit from a buyer is an opportunity for him or her tomeet not only with you but with your management team as well as tour thecompany’s offices and other facilities....

The Importance of Due Diligence When Buying or Selling a Business

Thu, 09 Apr 2009 10:43:00 EST

JoAnn Lombardi VR President There is no suchthing as a short cut when approaching due diligence. As time consuming andcumbersome as the process may be, it is not to be taken lightly. Theexamination has to be comprehensive and thorough for both the buyer and theseller.Particularly for thebuyer, a less than thorough review could result in costly surprises uponacquiring the business. A misstep in the seller’s research could end in losingthe deal or another kind of adjustment. Regardless of the sidethat you’re on, due diligence has to be followed to the slightest detail if youwant to engage in a successful transaction....

A Business Plan for Growth in Sluggish Times

Mon, 06 Apr 2009 10:19:00 EST

JoAnn Lombardi VR President “I don’t want to put any moneyinto my business until the economy improves.” How many times have youheard a small business owner say something like that? It kind of gives me achill every time I hear it. Imagine deciding not to spend any more money ontransportation until traffic improves.Many business owners who boughttheir own businesses did it because they liked the idea of setting their ownhours, being their own bosses, making a good income, and growing theirbusinesses into something to be proud of. They all had plans, big plans.Then oneday, some realized their businesses stopped growing....

Why Drafting a "Letter of Intent" is Recommended When Selling Your Business

Mon, 06 Apr 2009 09:54:00 EST

Peter King VR CEO Except in rare cases, the use of aletter of intent is recommended. First,the letter contains certain binding provisions that can give both parties aclearer understanding about the basic terms of the deal. For example, experienced buyers do not wantto spin their wheels while the seller shops an offer for their business around to other potential parties. Thus, the buyer may wish toobtain a no-shop agreement from the seller, a provision requiring the seller torefrain from negotiating with other parties for a specified period of time. Theletter of intent offers a way to obtain such an agreement early in thenegotiations....

2008 VR Annual Awards Winners

Mon, 06 Apr 2009 09:33:00 EST

JoAnn Lombardi VR President We are pleased to announce the winners of the 2008 Annual Awards for their great success in business sales. We take great pride and consideration in choosing these select business intermediaries that have moved ahead of the pack, and continue to have our company be the leader in business sales and mergers & acquisitions.This year, the VR Annual Award Winners are: 2008Top 10 VR Offices 1.) Artesia, CA(William Park - Owner) 2.) Charlotte, NC(Brad & Jay Offerdahl - Owners) 3.) San Diego, CA(Ken Oppeltz & Bill Lange - Owners) 4.) Dallas, TX(Scot Cockroft - Owner) 5....

Finding the Cutting-Edge Strategy

Fri, 03 Apr 2009 10:57:00 EST

Peter King VR CEO Every company has to have a strategy. Specifically, you need one that is effective and will create a buzz in the marketplace without the complexities and the numerous graphs. A successful strategy should create significant value and lead to sustained growth and returns, investor enthusiasm as well as customer fanaticism. First and foremost, strategy should generate a unique value. This is especially important in crowded markets, where competition is widespread and the numerous choices can overwhelm the customers. A cutting-edge strategy demonstrates that the company is doing something special, different and suggests greatness....

VR Opens New Portugal Offices

Thu, 26 Mar 2009 10:51:00 EST

Peter King VR CEO VR is proud to announce our international expansion with the opening of the first two offices in Portugal. Now that we have commenced operations in Santa Maria as well as the capital in Lisbon, we can penetrate Portugal's market along with the locations that we have opened in Panama, Mexico, Chille and Spain.As we've proceeded forward into 2009, VR hasmaintained their focus on bringing their expertise to potential clients who arelooking to buy or sell a privately-held business....

VR Opens Its Premier Office in Panama City

Wed, 18 Feb 2009 04:00:00 EST

JoAnn Lombardi VR President In late January of this year, VR opened a new office in Panama City , officially giving us a presence in Central America for the first time in our 30-year history. Owners Carlos Dias, Alfonso and Ruben Bustamante established the franchise in a new 6-story building that they built with theVR logo – located minutes away from the downtown area. There is incredible opportunity in with its ever-expanding metropolitan area and economy that’s growing at an 8% rate – extraordinary in these challenging times today....

Submit your questions to VR

Tue, 30 Dec 2008 12:56:00 EST

Peter King VR CEO We welcome questions about buying a business, selling a business, preparation, valuation, exit strategies, and business ownership in general.Submit your questions to VR here or use our contact form. We will respond to business related questions as quickly as we can. For immediate help, feel free to call VR at 1-800-377-8722 or find a VR Business Broker near you for a Business Intermediary that knows your local business environment....

VR Advantage - Buying with VR

Tue, 30 Dec 2008 09:05:00 EST

JoAnn Lombardi VR President VR's International Network of Professional Business Intermediary's offers over thirty years of successful experience to the buyer of a small or mid-size business around the world. Our tradition of bringing qualified buyers and committed sellers together is the cornerstone of the VR organization. VR boasts as being the only network of business intermediary's that requires a fulltime commitment on behalf of its franchisees and associates. VR has never allowed part-time offices and part-time associates to represent our clients, and makes the promise that it never will in the future....