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VR Business Brokers located in San Francisco specializes in selling technology companies and online businesses. We help developers and entrepreneurs understand the value of what they have produced and provide a systematic way to bring these assets to market that maximizes our client's businesses to the largest possible pool of qualified buyers.
VR is the oldest and largest national network of professional business brokers. We have a separate group dedicated to servicing the unique needs of our client's technology or online businesses. We leverage the traditional business brokerage network to provide access to a large database of qualified buyer for our ebusiness sellers. |
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We believe in order to maximize the value of our client's business we need to expose our clients to the top three segments of buyers in the marketplace. The market for buyers is separated into four separate sectors:
1. The Strategic Acquirer. These are the very best Buyers that will typically pay the highest price for an ebusiness or technology company. They can be a public company but is often a private company where our client's assets or customers fill a strategic gap. When this Synergistic fit occurs they are willing to pay top dollar for our client's company.
2. Private Investment Groups/Sophisticated Buyers. This group of Buyers is divided into two sectors: 1.) Investment or holding company 2.) High Net Worth Individuals that can pool" their funds to make an acquisition. They are often looking for more of a good return on investment, so will look at financial metrics as a top criteria. Lower interest rates have also spurred the growth of these Buyers by encouraging the formation of investment groups whose purchases are made using a "schooled" approach.
3. Financial/Cash Flow Buyers. By far the largest group of Buyers are Financial Buyers. The growth of the Internet and ecommerce has increased this pool of buyers dramatically over the last three years. For example the number one criteria many of traditional buyers have is to purchase a home-based business, so many are now considering online businesses for purchase. They will often be looking for a "living wage" typically commensurate with the initial investment.
4. Industry Buyer. The Industry Buyer is almost always the Buyer of last resort. If you have to sell, the Industry Buyer is usually the only Buyer you will attract. The difference between the Industry Buyer and all others Buyers is the value of goodwill: Industry Buyers won't pay for it.
What makes VR Business Brokers unique is our Selling Process:
Commitment. Your commitment to us is to sell your business at a price and with terms consistent with the marketplace.
Buyer Definition, Value Proposition and Positioning Statement. We first develop your value proposition based on an understanding of what our client's core assets are. We then identify the possible Strategic and Private Equity buyers. Once this is accomplished we establish a marketing campaign based on a value proposition that will appeal and reach the potential "pool" of buyers including the Financial/Cash Flow Buyers.
Valuation & Pricing. Once we have analyzed your business and its potential in the market place we suggest a realistic price and terms.
Packaging. We put together an online company profile only disclosing necessary information to attract qualified buyers. We also put together a "Confidential Business Profile" with detailed information about your business. This profile can be accesses via the Internet and will include in some cases video formats to present your business in the clearest light.
Online Advertising and targeted Direct Marketing/Business Development. We post your business on our Web site as well as a national network of Web sites that reaches the Financial/Cash Flow buyers. This is where our competitor's stop. We then develop offline and online direct marketing packages that reach the Strategic and Private Equity buyers. Often the value proposition is changed for different Strategic Buyers given the difference in buying criteria each type of buyer might have. We get the highest possible response and the greatest number of prospects.
Screening. We interview prospective buyers to eliminate those who are unable or not ready to purchase a business at this time, and to screen out competitors and others with suspect intentions. We obtain a signed Confidentiality Agreement and Net Worth Statement from every prospective buyer.
Buyer Management and Offer to Purchase. We spend lots of time with buyers getting them educated and informed in order to make and offer. We encourage buyers to write a fair offer accompanied with an earnest money check. Our "offer to purchase" form is proven over thousands of transactions, protecting your interests as well as those of the buyer. We present the offer to you, along with detailed information on the background of the prospective buyer.
Counter Offer/Offer Acceptance. Once both parties agree on terms, we have an "offer acceptance", but not a done deal. Nationwide, more than half of "offer acceptances" fail to progress to closing. At VR, our rate is much higher, because we know how to manage the subsequent critical steps.
Due Diligence. Nearly all offers are contingent upon the buyer's inspection and approval of many aspects of the business operation, such as financial records licenses, inventory, etc. The handling of this "due diligence" phase of the process is critical to ensuring a successful sale.
Contingency Removal. Once the buyer is satisfied with the lease, inspections and other contingencies, the contingencies are formally removed to make the offer a binding one.
Closing Preparation. We guide seller and buyer through the closing process with a rigorous checklist to ensure that everything necessary to close the sale is ready at closing.
Closing. At closing, money, title and possession of the business change hands. With proper planning and preparation, this step will go smoothly.
Celebration!
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