The best time to sell is when a business is doing well. It’s best not to wait until after a business has peaked; the selling price can suffer. However, almost any business can be sold, even if it is not doing well, if the sale is handled professionally and priced correctly.
A company’s value depends on many factors such as cash flow, asset values, financial history, condition of equipment and premises, favorable lease terms, competition, location, and the economy. By analyzing your business and comparable sales in your industry, your VR Intermediary can advise you on the proper pricing strategy for your business. For larger businesses we recommend a third party valuation. Buyers are much more likely to pay top dollar for a business when documented evidence supports the asking price. Most financial institutions insist on a business valuation before they will consider financing.
Most owners find that the frustration, expense and time involved do not yield cost savings and many end up working with unqualified buyers. In fact, because they do not have access to a large number of qualified buyers, many owners end up selling their business for much less than they could have received by working with a well-established Intermediary. Plus, owners find it difficult to work directly with buyers while maintaining confidentiality. Selling a business is a specialized trade. Seek professional assistance when it comes to selling an asset as valuable as your business.
Sellers benefit in various ways. The more significant benefits include: the ability to spend their time managing their business during the selling process, thereby keeping their net profit up and maintaining the maximum sales price; the ability to maintain confidentiality about the sale therefore not alarming client bases, employees and suppliers, or giving a market advantage to a competitor; and step-by-step assistance through the selling process.
Who you choose to sell your business could affect the way you live the rest of your life. Select a trained professional who specializes in the sales of businesses only. Some questions you should ask prior to making a decision are:
- Are you a full-time business Intermediary?
- Do you work from home or from an office?
- What type of training have you received?
- How do you value my business?
- Do you expose my business to a network of other full-time professionals that are willing to show the opportunity to their qualified buyers?
- What type of national and international exposure does my business receive?
- What is your success rate of selling correctly priced businesses?
The VR network has developed a proven system for selling businesses and has been operating since 1979. The VR network is also the only international network of full-time professional business intermediaries catering to the needs of their clients. When working with VR you receive the following and much more:
- Maximum exposure.
- Pre-screened buyers.
- Negotiating power.
- Advertising and marketing expertise.
- International and national co-brokering.
- Pricing and financing knowledge.
- Proven results.