Archive for the ‘Articles By JoAnn Lombardi’ Category
JoAnn Lombardi – Preparing Your Business for a Buyer’s Visit
Preparing Your Business for a Buyer’s Visit
By JoAnn Lombardi, Pres. VR Business Brokers
A buyer’s visit has to be taken very seriously for a number of reasons if you want to move closer to a deal to sell your business.
A visit from a buyer is an opportunity for him or her to meet not only with you but with your management team as well as tour the company’s offices and other facilities.
The buyer will ask you specific and in depth questions about your business to determine what are the benefits and risks.
On the other end, you should be asking questions to make sure that the buyer has the financing to even proceed with the purchase.
Be sure to assemble current financial statements and other essential documents that will be helpful.
And last but not least, keep your business visually appealing to make a good impression.
Read full article here Preparing Your Business for a Buyer’s Visit
Contact VR at 1.800.377.8722 for full assistance in preparing your business for all aspects of a successful sales transaction.
JoAnn Lombardi – Calculating the Working Capital for a Business
Calculating the Working Capital that You Have Available
By JoAnn Lombardi, Pres. VR Business Brokers
The formula for working capital can be expressed as:
Current Assets - Current liabilities = Working Capital
Current assets - What can be converted to cash within one year or a normal operating cycle.
Current liabilities - Monies owed that are due within one year.
Example:
-
If a company’s current assets total $300,000, and
- Its current total liabilities are $160,000;
Then its working capital is:
$300,000 – $160,000 = $140,000
Calculating the Working Capital for a Business
There are additional aspects to determining cash flow and other financial aspects of a business.
Contact VR Business Brokers at 1.800.377.8722 for more assistance in establishing the proper value for a business for sale or purchase.
JoAnn Lombardi – Preparing an Offer For Buying A Business
Preparing an Offer as a Business Buyer
By JoAnn Lombardi, President VR Business Brokers
Attention to detail is important with every aspect of the business that is for sale.
As a buyer, you will have to perform your due diligence before an agreement is drafted and signed by you and the seller.
Some of the key aspects to consider are:
- Outlining all the positives and negatives to the deal;
- Resolving the challenges that are preventing negotiations from moving forward;
- Find the middle ground where both you and the seller can come to terms;
- Present and have signed the purchase agreement.
Read full article here Preparing an Offer as a Business Buyer
In buying a business, our skilled VR Business Intermediaries can help toward finding a business that matches your qualifications and interests, as well as informing you on what the Seller expects from you as a Buyer.
You can contact our VR Headquarters at 1.800.377.8722
For information about owning a VR Franchise you can view VR Franchise Presentation Videos & PDF.
JoAnn Lombardi – Following the Correct Path to Selling a Business
Following the Correct Path to Selling a Business
By JoAnn Lombardi, President VR Business Brokers
The time always comes when you decide to sell your business. You may have not thought about it when you were looking to buy, but this situation happens all the time: the once-in-a-lifetime opportunity becomes a financial and psychological albatross that you seek to have someone else take over.
… not all businesses are sold as a result of being financially in the doldrums. There are personal reasons such as illness, death or impending retirement of the owner.
If an owner reaches the point that it’s time to “pass the torch,” the sense of urgency to sell will hit like a tidal wave. If the buyer senses this, the offering price will drop and the terms will become more difficult to negotiate even if the business is in solid condition.
If you’ve decided to sell your business, we here at VR can help you accomplish this.
Do not even attempt to consult someone that is not experienced in selling businesses …
This is why you need to go through one of our VR business intermediaries. We will guide you through the process from start to finish without any confusion or apprehension.
Read full article here Following the Correct Path to Selling a Business
For direct assistance in selling your business you can contact our VR Headquarters at 1.800.377.8722 and we will direct you to one of our experienced Intermediaries in your area.
JoAnn Lombardi – Venture Capital as Private Equity Investment
Understanding Venture Capital as a Type of Private Equity Investment
By JoAnn Lombardi, Pres. VR Business Brokers
Most people don’t fully understand the concept of private equity and venture capital when it comes to financing business investments.
Often, both terms are used interchangeably, but each is different. Venture capital refers to a significant investment made in a new venture of technology often by one person or an entity. By contrast, private equity refers to raising funds to purchase equity in a business through a private offering.
Only one third of all private equity funds can be considered “venture capital” funds.
Read full article on Understanding Venture Capital as a Type of Private Equity Investment for more information on Private Equity Financing, Venture Capital, and Return On A Venture Capital Investment.
JoAnn Lombardi – What Not To Do When Buying A Business
What Not to Do if You Become a Small-Business Owner
By JoAnn Lombardi, President VR Business Brokers
Here are a few things that you should NOT do when you’re going to be buying a business:
Set Up an Equal Partnership
Having Inadequate People and Planning
Relying Too Heavily on Fewer Customers
Insufficient Financing Can Cause Cash Flow Troubles
Failing to Admit Mistakes
Underestimating the Competition
Read full article here What Not to Do if You Become a Small-Business Owner
You can contact VR for assistance when buying a business at 1.800.377.8722
JoAnn Lombardi – Planning when Buying a Business
Importance of Planning when Buying a Business
By JoAnn Lombardi
VR advises to develop a business plan that can help ensure that you know what your goals are and how to achieve them. In essence, a business plan is a road map that helps you focus on the most important points.
Here are some points to consider:
Examining Your Objectives …
Evaluating Strengths and Weaknesses
- Marketing and Sales – Research distribution channels and pricing strategies;
- Manufacturing – Analyze product costs such as raw materials, labor and overhead, availability of materials, operational forecasts and condition and capacity of manufacturing facilities;
- Business’ Financial Position – Estimate the company’s future working capital and capital investment requirements, current talent and expertise and transferability of skills.
Neglecting the Business Plan can Result in Failure …
Read the full article at The Importance of Planning when Buying a Business
Information on Owning a VR Business Sales Franchise – Videos & PDF Presentation
