Preparing to Sell

At VR we are acutely aware of what it takes to sell a business. Preparing the seller, and aiding the seller in preparing the business to achieve the maximum gain from the sale, are two important roles of the professional Intermediary.

Owners sell their businesses for reasons stemming from retirement, partnership disputes, personal relocation, family concerns, the desire for change, illness, or to enter another business venture. Knowing the reason for the divestiture aids your VR professional in structuring the most advantageous transaction.

VR turns to its professional alliances to help you seek the appropriate tax strategy, succession plan, or investment strategy to again help you maximize the benefit of the sale.

Some key, specific items needed to ensure a successful transaction include the following:

• Having provable books and records to increase the number of potential buyers. Buyers want proof of sales and profits the business has attained in the past.
• Having a reasonable expectation of price and terms. Educated buyers only consider competitively priced businesses.
• A list of assets including furniture, fixtures, and equipment. A complete inventory that can be referenced during inspection.
• An attractive lease. Knowing the terms of assignment or of a new lease.
• Best possible appearance. Having the business premises neat, clean and in good repair.
• A professional valuation of the business. A valuation on the business creates a document that proves value to the buyer and shows the business to be competitively priced.
• A covenant not to compete. Preparing the terms of non-competition within an appropriate distance and for an reasonable period of time.
• A specific reason for sale. Buyers will want to understand the reason for sale and be comfortable that there is not undisclosed information that could negatively affect their investment in the future. This could include retirement, burnout, and simply a desire for change.
• Time is of the essence. Be prepared to move forward when a qualified buyer shows interest in the business.
• No surprises. Most adverse situations, such as landlord problems, outstanding loans, tax arrears, unfavorable equipment leases, and even non-compliance with zoning, health or other regulations, can be overcome if known to your professional VR Intermediary.