IndiaBizForSale.com Just Crossed 2500 Business Listings! – Here’s Our Journey So Far

IndiaBizForSale.com started in 2013 with the core mission of helping small and medium business owners sell their businesses instead of closing shop. Back then, we were largely business owner(seller)-centric – i.e. only sell-side listings existed on our platform and made a humble beginning with just 50 businesses looking for exit listed on the platform.

The first revelation happened when we discovered that our platform could also serve buyers and investors in a large way. While we always had buyer registrations, we soon noticed that the number of registered buyers on our platform was 2-3 times more than that of the sellers, and yet we did not have any buyer listings yet! We were constantly receiving inquiries from them and soon we realized that we would need to focus on buy-side listings as well and showcase their requirements.

After a while, we again widened our scope in another direction – this time towards expanding the kind of transactions we supported. While our platform always had the option of part-sale, it was focused more on asset-sale and sale of non-core business. Soon, we realized that our platform can also help businesses looking for more mainstream growth options such as raising investment, joint ventures and distribution partnerships, and so we widened our listing opportunities to include such growth options as well.

In this way, from a seller-centric platform we became a business matchmaking platform, and today we have listed over 5,500 buyers and investors, and 2,500 sellers and over 25,000 registered professionals are using our platform.

Even as we speak, we are reaping the benefits of evolving into a matchmaking platform. The matchmaking approach has shown its wonders with a considerable number of matches already being made – and what’s more – from among these matches, we have a closed a number of deals as well! Over the last few years, we have successfully closed multiple deals across several sectors such as Healthcare and Pharma, Education, IT and ITes, Manufacturing, and Financial Services.

More recently, we also filled a critical gap in the ecosystem by addressing the need for providing advisory support to both buyers and sellers. This has sparked our transition towards becoming an end-to-end deal-making platform where we extend expert transaction advisory services, dedicated attention of a deal associate, and high-involvement deal-making services such as negotiation, targeted scouting, and tapping into third party deal prospects.

We took this a step further by pioneering a novel deal-making event in India called the Business Buyer’s Club. It is our ambitious attempt to fast-track deal discovery by bringing together highly curated and credible prospects from both buy-side and sell-side. Handpicked businesses were showcased to a cohort of genuine buyers and investors in Mumbai and Ahmedabad, followed by networking and matchmaking that facilitated personal interaction between buyers, investors and business owners. We have received tremendous response from the event participants in Mumbai and Ahmedabad, and along the way we also joined hands with esteemed organizations FICCI and GCCI who shared a joint vision with us – and event outreach partners such as eChai, TiE and ah! Ventures. We are thankful for the enthusiastic support we have received from every corner and more events like these are definitely on the cards.

Even as we evolve and transform, our larger goals remain the same – we are here to make SME deal-making hassle-free, quick, and exciting, and have miles to go before we rest.

NDA and Three Other Deal Agreements You Should Know About

We know how confusing it is for business owners who are planning to sell a business for the first time, especially when it comes to understanding the various documents involved in the process. Having worked with thousands of businesses closely over the last few years, and with a number of successful deals to our credit, we are well-acquainted with the various deal documents. In this article, we will share with you the meaning and implications four key deal documents, and how you can use them.

  1. Non-Disclosure Agreement (NDA)

The NDA is a critical document, especially in the early stages of the deal. As a business owner, you will be sharing a lot of critical information about your business with prospective buyers who are genuine and show serious interest in your business. The misuse and mishandling of such information is a risk that worries most business sellers. The NDA is a means to safeguard the interest of the seller. While there are multiple versions of the NDA available, in general it states that:

  1. The buyer understands that any information shared with him is privileged information and has been shared only because he has shown genuine interest in buying the business
  2. The buyer cannot share any information about the business or about the seller with a third-party unless the seller has given explicit, prior consent for the same
  3. The buyer cannot use any know-hows, trade secrets or knowledge inputs gained from the information shared with him to further his own interests, or to benefit any other entity directly or indirectly

One of the key questions that sellers ask is, what if the buyer violates the NDA? While it is a legal document, and you can take legal action for violating it, seasoned buyers are usually well aware of the do’s and don’ts. If you are dealing with a first-time buyer, make sure you discuss the various provisions of the NDA with him.

  1. Term Sheet

The term sheet is not a legally enforceable document, but just a primer for the actual deal agreement. It formalizes the deal structure, terms and conditions, and valuation, and lays them out in a concise manner to act as a guiding document for the actual deal agreement.

Often, sellers are confused between a deal agreement and a term sheet. Remember, that a term sheet is not a guarantee for the deal to take place, as deals are known to break even after the term sheet has been signed. However, the deal agreement is enforceable and its violation has pre-defined implications on the party (buyer / seller) who breaches it.

  1. Memorandum of Understanding (MoU)

MoUs are signed at various stages of a deal, as and when situations arise that demand mutual agreement between the parties. For example, a buyer’s explicit intent to buy a business can be captured in a purchase intent MoU, pre-conditions related to payment to the seller can be captured in a separate MoU, and so on.

It is important to understand that while the MoU is a legally enforceable document, it is not the deal agreement and any conditions in the MoU cannot override the deal agreement. Also, the deal agreement remains valid even after the deal is closed, but the MoUs become invalid on closing the deal, or they become a part of the deal agreement itself.

  1. Deal Agreement

The deal agreement is a detailed document that captures the terms and conditions of the transaction, the payment terms, the rights and obligations of each party, representations and warranties, indemnity, dispute resolution mechanisms, post-sale involvement of the seller, implications of breach of the agreement by any party, and so on.

The deal agreement draws from the term sheet and MoUs signed, if any, but is much more detailed, elaborate and clear. It is usually drafted by expert legal advisors. Both the buyer and the seller receive a copy of the deal agreement each, duly stamped and signed by both the parties.

At IndiaBizForSale.com, we help thousands of sellers discover the right buyers and manage deals better through support such as deal document templates, business valuation services on request, dedicated deal associate for select deals, and so on. To know more about what we do and how we can help you, please write to us at [email protected].

Business Verification – Details and FAQs

SELLER SIDE

We understand that coming to a point where you are looking to sell your business or looking to raise funds for business growth is a difficult choice to make. However, what makes it even more difficult to find buyers or investors for your business.

At IndiaBizForSale.com, we believe in giving every business opportunity a fair chance to be bought / invested in. To gain added trust in your business, we also provide Business Verification service.

verified
You only need to send us your:
1. Last 3 year’s audited financial statements (Profit & Loss and Balance Sheet)
2. Original images of the business (recent)
3. KYC (Individual / Company PAN card)
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An Analysis – Demonetisation of INR 500 and INR 1000 Currency Notes

Prime Minister Narendra Modi, through an address to the nation, declared banning of INR 500 and INR 1000 currency notes from midnight of 8th November, 2016. This announcement is the consequences of government accepting RBI recommendation to ban these currency notes, and introduce newer, supposedly more secured currency notes. The reasons suggested behind this sudden and unprecedented action was to fight corruption, black money, and terrorism financing. However, the mainstream economy operating on electronic transactions, cheques, debit cards, internet banking, cash, demand draft transactions, e-transactions on account of business firms, companies and individuals will continue.
 
currency
 

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Hack: How to Choose Smart Business Broker for Selling Your Business

Small and medium enterprises (SMEs) have been the backbone of the Indian economy. According to the reports by the SMB Chamber of Commerce and the Ministry of MSMEs, India had more than 48 million SMEs in mid-2014. The ratio is growing at a stable pace of 4.5% in the last 5 years. As much is the escalation in the number of new businesses, there is a rise in the number of people exiting from their businesses. On an average every 3 years people shift businesses.

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Budget 2016: Impact on Startups

Startups were awaiting anxiously for Mr. Jaitley to come with bonanza for them. Few years have been happening for them and companies started by new breed of entrepreneurs have attracted huge investment from domestic as well as foreign investors.

Modi’s emphasis on “Make in India” and “Standup India” had raised expectations to peak. Even the FM speech gives an impression of fresh blood infusion by offering various tax sops to start-ups. FM mentions in his budget speech (Para 125) to assist Startups by allowing 100% deductions of profits in 3 out of 5 years of their start. However, let’s have a look at the fine print of various provisions of Finance Bill, 2016. Continue reading “Budget 2016: Impact on Startups”

How to Grow Your Business in 2016?

If you have been pondering over growth opportunities for your business, the timing could not have been better. In October 2015, growth of India’s industrial output reached the highest in the last 5 years. The overwhelming 200+ acquisitions in the startup ecosystem alone, coupled with prominent nation-wide initiatives such as Make-in-India and Digital India, have made 2015 the apt stepping stone to 2016 – the year of growth.

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Growing Trend in SMEs Industries

In today’s globalized world India has emerged as an engine of global economic growth where the average GDP run rate is 7.2 per cent. This is encouraging creation and implementation of more and more policies focusing on further growth. The government’s intent to rejuvenate the Indian economy has positively affected the business environment. Indian companies are now getting more aggressive in acquisition scenario as they can see the government’s vision. This is completely visible in the market because of some major takeovers that have happened in the recent past.

The problem arises with MSME (Micro, Small and Medium Enterprises) segment where it is difficult to exit or expand i.e. selling a business or buying a business since it is difficult to market them and help them reach the right audience and also because of the high charges of investment banking companies.

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Growing Investment Interest in Indian Education Sector

Education is considered the most crucial and the vital key for modernisation and development. The importance of education can be evaluated from the fact that every advanced society and culture is promoting universalisation of education as a parameter for long term economic development. There is a huge demand for advancement and modernisation of education system in India, as the country is estimated to have an excess of 47 million resources in the working age group by 2020. As per the prediction of the consumption trends urban India is investing 9% of earning on education whereas the rural consumer is limited to 6%.

Ecosystem of Education in India
Of late education sector in India has witnessed a chain of changes, resulting in a significant rise in the market share of the education sector. With economic development and evolving technology, Indian education sector has reasons to celebrate. The Government of India has also initiated many plans to attract investments from non-resident Indians for the development of education infrastructure.

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Reminisce 2014

2014 has been the year where we found our start up journey all about perseverance and passion. There have been days where we felt at the top of the world and there were days where nothing seemed to work. We faced issues with hiring, website development, hosting server and many other petty office issues like the Internet connectivity, telephone, water supply, etc 🙂

But, eventually “going” got only better with the wonderful team, website development and the amazing network. We especially enjoyed the attention from the users of IndiaBizForSale.com. We have been receiving loads of praise and positive feedback from across the country and abroad. The testimonials we received from our clients who successfully sold (although few decided not going forward selling their business after receiving offers) and many who have managed to come across serious inquiries which otherwise would not have come. We believe in the cycle of doing good with good intent and this year has proved our belief.We have received remarkable support from CIIE, eChai, MICA, CII, GCCI, Economic Times, DNA, Divya Bhaskar, VCCircle, Money Control, Microsoft Azure, various business Bloggers, etc.

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