MESSAGE FROM THE PARTNERS
This week has been a phenomenal week for our clients and buyers alike. We are expecting a number of proposals and offers to be confirmed over the next 7 days, we will, of course, update you as things progress. This means we are urgently looking for new businesses with EBITDA of $300k - $3M to meet the high demand in the market.
MYBIZSALE.com.au is also close to a joint venture partnership with a major SME business lender. This will mean that smaller businesses can sell their business without any money down and no commission at the end. This will be a great solution for so many small businesses feeling the cash flow pinch.
We are also excited to announce that Salesforce has offered VBA the opportunity to take on its Marketing Cloud platform! This will be a huge advantage to VBA's growth which will in turn benefit all our clients. The Marketing Cloud platform is typically used by large corporations due to its substantial cost, so we are honoured to have been chosen as one of the first SME clients to utilise this feature. Another example of VBA bringing big firm expertise and systems to our humble boutique firm. You will notice plenty of great changes coming soon!
The VBA Team
HOW TO MAKE SURE THAT BOTH
THE SELLER AND BUYER ARE PROTECTED
Following last week where we spoke about disclosure of business information that leads up to an offer, now, hypothetically you have confirmed your indicative offer. This is a significant achievement for the seller and buyer, though it is not time to crack the champagne just yet! (We are getting closer though)!
What are the next steps to make sure that both the seller and buyer are protected, and most importantly move forward on fair/balanced terms?
Just like the sale of a house, a buyer will be required to pay a deposit at this stage. This deposit sends a message to the seller that says “we are serious and this deposit demonstrates our intention to purchase the business, provided that our due diligence investigations are consistent with the information you have provided."
It sounds simple enough, though there are some key principles and key considerations that we, as business brokers and advisors, must adhere to.
The first thing a buyer and seller need to be clear on is the terms of the deposit. Unlike selling a home, there are variables at play.
a) Is the deposit fully refundable and under what conditions?
In smaller business transactions such as retail, typically deposits are refundable. However, for businesses with substantial IP, trade secrets or key customers, a buyer may need to leave some “hurt money” on the table.
b) Does the deposit buy an exclusive period for the Purchaser to complete their due diligence, which may involve some high-risk disclosure?
We touched on this in last week’s wrap up...Read more
Our mission is to transcend the standards of the business broker industry, and this means so much more than just selling businesses.
We would love for you to be part of our community.
From all of us at Vision Broker and Advisors, we really look forward to working with you.
Good luck, and make sure you have a look at our business for sale.