Due diligence is the process of determining whether representations (legal, financial and otherwise) made by a seller are true; and whether the buyer's proposed bid is fair based on those representations. The purpose of due diligence is to uncover weaknesses or uncertainties that might prevent the transaction from meeting a buyer's desired goals. In today's…

For most business owners, leaving their business is likely to be the biggest transaction of their lifetimes—and the one that will have the biggest impact on their financial and emotional future. Yet more than 80% of owners have no written plan and nearly half have done no planning at all, according to the Exit Planning…

Deals are being done in today’s M&A environment but due diligence is more stringent and buyers want to buy companies that do not bleed red ink. This is certainly a positive trend (shouldn’t M&A be about making smart deals?) However, when buying a cash-flow positive company, it can quickly become a negative cash flow company.…

How many times have you heard someone say they would like to own their own business? As a long time banker and now a strategic business advisor who works almost exclusively with business owners and business leaders, I have heard that comment more times than I could ever remember. What is it about owning a…

As a seller, you can contribute to a successful sale in many ways. Remember that your view of the business may differ from the potential buyer. Here are a few guidelines: Be friendly and cooperative. If the buyer requests information, provide it as soon as possible. By responding quickly, you will help establish trust and…

Knowing How to Perform Due Diligence as the Buyer If you’re a buyer and have signed the Letter of Intent with the seller, the next course of action involves putting together a team to assist you in conducting due diligence on the business. VR Business Sales can help recommend a variety of experts that are…

Understanding the Essentials of Business Valuations When you consult VR Business Sales to sell your business, determining the value is an important and complex priority that needs to be properly executed. There are a variety of elements that must be considered when performing a business valuation; which include actual earnings to calculating discretionary earnings to…

Performing Due Diligence before Making the Deal Whether you're a buyer or a seller, you have to determine whether the business transaction being put together is as good as it looks on the surface. This is why performing due diligence is an important and integral part of the process. Too often, inadequate information is submitted…

Putting Together an Effective Business Plan 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, we will educate you on formulating one when you come in for a…

Choosing the Right Business Types when Making an Acquisition When you’re looking to buy a business, you have to understand the type of business entity, especially for tax purposes. There are four basic types of entities that can be used to buy and run the business:  C Corporation;  S Corporation;  Partnership –…