Question 1

How can I assign a different profile manager to one of my listings?

Accepted Answer

You can assign a different profile manager by following these steps:

1. Go to your dashboard and locate the listing you wish to update.
2. Click on "Edit" for that particular listing.
3. Check the box labeled "I have someone else who will take care of this profile."
4. Enter the email address of the profile manager in the provided field, as shown in the picture below.
Note:

- The assigned profile manager will have full control over your profile. This includes the ability to view and edit the profile, send proposals, and message potential connections.
- The profile manager will receive emails related to this profile and will be able to access it from their own dashboard once they log in with thier email address.
- It’s crucial to ensure that the person you assign understands the importance of maintaining the security of your profile information.
If you wish to remove them as a profile manager:
- Simply uncheck the option "I have someone else who will take care of this profile" and save your changes.
- Once you do this, the person will no longer have access to your profile.

Question 2

Should I interact with someone who no longer has a profile on SMERGERS?

Accepted Answer

Please ensure you interact with your introductions only through the SMERGERS platform. In case the introduction is no longer available on your dashboard, then you should take precautionary measures and immediately stop interacting with that specific member.

Question 3

Can I delete a message already sent on SMERGERS?

Accepted Answer

Yes, you can delete messages sent by you. Visit the inbox page of the introduced member, identify the message that you want to delete, and click on the red "X" icon on the top right corner of the message. Confirm the deletion by clicking on the "Delete message" prompt.

Question 4

I cannot login. How can I reset my password?

Accepted Answer

If you have forgotten your password, you can reset the same. Visit this link: https://www.smergers.com/login/ select the Login tab and click on 'Forgot your password?' as shown below.

You can enter your registered email address or phone number to receive a message regarding your account and reset your password.

Question 5

What are the ROC-Verification.pdf and Domain-Verification.pdf documents that I see on my business profile? I haven't uploaded them.

Accepted Answer

These are the documents that are automatically generated by SMERGERS at the time of profile approval, depending on the information available. These documents provide potential investors with further information about the credibility of the business. Profile owners can access these documents via their Edit page and also choose to delete them if required.

ROC-Verification.pdf - This report compiles data from the Ministry of Corporate Affairs (MCA) regarding public limited, private limited, and limited liability partnership companies that are registered in India.

Domain-Verification.pdf - The document contains the website ranking from SimilarWeb and Domain Authority from Moz which is an approximate indicator of a website's popularity. Note that this document is generated only if the user provides us with their website information and also has a good traffic ranking.

Question 6

Does SMERGERS have a mobile app?

Accepted Answer

SMERGERS works as a Progressive Web App (PWA) which can be downloaded from the browser, instead of the App store. This is a lightweight app which takes minimal memory on your phone but an experience on par with native apps. To install, visit www.smergers.com on Safari (for iPhone) or Chrome (for Android Phones) and click on the logo to trigger the install message as shown below and follow the onscreen instructions.

Safari on iOS Chrome on Android

iOS web app Android web app

Question 7

How to change the currency in which the amounts are displayed?

Accepted Answer

The currency symbol is displayed on the top left portion of the website. By default, this is set to the local currency of your location. If you wish to change this, click and select the required currency from the dropdown. All numbers on the website will now be shown in the currency you have selected.

Question 8

How can I unsubscribe from emails?

Accepted Answer

Log in to your Dashboard, click your profile picture on the upper right corner and select "Settings" as shown in the image below. You'll see an option to update your "Email Preferences" on the left side.

Question 9

How do I change my existing password?

Accepted Answer

Log in to your Dashboard, click on your profile picture on the upper right corner and select "Settings" as shown in the image below. You'll see an option to "Change Password" on the left side of this page.

Question 10

Where can I see the number of emails sent as part of accelerated marketing?

Accepted Answer

Login to your Dashboard and click on the Introductions page. Accelerated marketing emails appear as Exclusive Emails Sent on the left hand side, directly beneath the Profile Insights graph, along with the number of emails already sent. The emails are sent over a period of 3-4 weeks after profile approval.

Question 11

Why does my closed profile still show up on a search engine?

Accepted Answer

Once a profile is closed we mark the transaction has closed and remove it from search engine indexing. But Google and other search engines may still retain it and show the results for a while which isn't in our control.

Question 12

Are documents uploaded on my business profile publicly visible?

Accepted Answer

Documents uploaded on a business profile are not publicly visible. They are accessible only to introduced members depending on the option you select on your profile:

If “Display company details to introduced members so that they can know about my company” is checked, introduced members can access the documents.

If unchecked, then the buyers/investors would not be able to access the documents even after the introduction and would instead see this message: "Profile owner has disabled view of documents. You can request these documents by messaging the user after introduction."

Question 13

Is there an option to temporarily close my profile?

Accepted Answer

There is no option to temporarily close a profile. You can instead "Close" your profile and reopen it when required. To close your profile, log in to your dashboard and click on the "Close" button on the profiles shown below. Please note that the subscription validity will remain unaffected and will follow the original payment date.

Close Profile

You may reopen your profile anytime within the subscription validity by clicking on "Edit & Reopen" as shown in the picture below.

Reopen Profile

Question 14

How are notifications generated on my dashboard?

Accepted Answer

Dashboard notifications are based on the location and industry preferences set in your account. The same is also used for sending email recommendations. You can edit the same by visiting your dashboard and clicking on the "Account Details" section on the left side under your profile picture.

Question 15

How to use Bundle Plan credits to upgrade expired fast track profiles?

Accepted Answer

If you have Fast Track credits left from your Bundle plan, you can use the same to re-upgrade your expired business profiles. To do the same login to SMERGERS, click on "Edit" under the profile you wish to resubscribe, and scroll all the way down to choose “Existing Fast Track Credits” as shown in the picture and click "Submit".

Question 16

Please explain the terms used in a Franchise profile

Accepted Answer

Space Required: The physical area required to set up a franchise outlet or office space. Typically specified as a range.
Brand Fee: A fee charged by the franchise brand owner to the franchise investor that permits the investor to operate under the brand name. This fee may either be a one time expense or be charged on a periodic basis.
Total Investment: An all-inclusive estimated cost of setting up a franchise outlet or office. The investment amount always includes the brand fee, cost of the office setup, cost of the outlet setup, legal and compliance costs, marketing costs, and other incidental start-up costs which includes employee salaries, and inventory costs. Typically specified as a range to account for circumstantial variables.
Royalty/Commission paid: Royalty is the recurring fee paid by the franchise investor to the franchise brand owner for the right to sell the brand’s products or services. In this scenario, the franchise investor collects the entire revenue and then pays the franchise brand owner a royalty fee.
Commission: Commission is the fee paid by the franchise brand owner to the franchise investor. In this scenario, either the franchise brand owner collects the entire revenue directly or the franchise investor collects the entire revenue and then remits either the entire revenue or the cost of the products sold/services rendered to the franchise brand owner. The franchise brand owner then compensates the franchise investor in the form of a commission for having sold its products or services.
Both royalty and commission can either be a fixed recurring fee or specified as a percentage of the monthly or annual revenue.
Monthly sales per franchise: The monthly sales per franchise is the estimated gross revenue that the franchise outlet is expected to generate in one month of operations. If the franchise brand owner already has similar outlets that are operational, the estimated monthly sales per franchise is expected to be in line with the average monthly revenue generated by the existing outlets similar to the franchise outlet.
Profit Margin: This is the estimated pre-tax profit a franchise investor is expected to make. This margin accounts for the cost of goods sold and/or the cost of the services rendered, operational expenses including rent, utility bills, and salaries, and the royalty fee or commission received as applicable.

Question 17

How to change my personal profile picture?

Accepted Answer

The profile picture is picked up automatically from your social login. To edit it please login to your Dashboard and click the Edit icon at the bottom right of your photo as shown below and select an alternate picture.

Question 18

Can the valuation prepared by SMERGERS be treated as a regulatory valuation report?

Accepted Answer

The valuation model prepared by SMERGERS, while being prepared by experienced valuation professionals, is not a regulated valuation report which can be used for regulatory or tax purposes. It is an excel valuation model built relying on several assumptions provided by the company and independent sources without independent verification or due diligence by SMERGERS team. This model can be used for internal and negotiation purposes only. It is not a registered valuer or merchant banker or a tax valuation.

Question 19

Will payment for a subscription plan be charged automatically on a recurring basis?

Accepted Answer

None of the subscription plans on SMERGERS renew automatically. User will have to manually resubscribe to continue using the plan based on the validity of the plan. Details of paid plans can be viewed here.

Question 20

How to accept a business proposal?

Accepted Answer

If a business proposal sent to you meets your investment criteria, you connect with this business for free. To connect with the business directly from your email, simply click on the green "Connect" button as shown below.

Alternatively, you can also visit the Messages section on the top right of your dashboard to view all proposals received. Click on the "View" button to see the business details as shown below. Type your message to the business and click on the "Connect For Free" button to directly connect with the business.

Please note that accepting a proposal is free and your introduction credits are not used when you connect with a business or franchise which has sent you a proposal. For more details please refer to: Do my credits get used if I accept a proposal?

Question 21

How does the 'Unlimited Proposals' plan on sell-side work?

Accepted Answer

Unlimited Proposal allows you to enhance your outreach and get the best visibility for your business or franchise profile on SMERGERS. You get unlimited proposal credits (subject to fair usage policy) to reach out to registered investors and acquirers for a period of 1 year. SMERGERS will also trigger proposals from your business to top 50 investors/acquirers in your sector. Additionally up to 3,000 registered members from your industry will receive your business profile over an email blast as part of the marketing outreach.

To check the pricing and subscribe to this plan, log in to your profile, click on edit, and scroll all the way down to choose "Unlimited Proposals" plan inside "Select Individual Services" section.

Question 22

How can I connect social media accounts to my SMERGERS account?

Accepted Answer

You can connect LinkedIn, Facebook and Google accounts to your SMERGERS account by logging on to your dashboard and clicking on the links shown below. Logging into SMERGERS using your social account automatically captures this information if they are registered under the same email address. Kindly note that these social media links are not displayed on your public profile but would rather reflect in blue as verified once connected.

Social Media Accounts

Question 23

How to resubscribe to emails from SMERGERS?

Accepted Answer

If you accidentally unsubscribed to all emails from SMERGERS, you can resubscribe by logging in to your dashboard. Click on "Edit" next to "Email Preferences" on your profile card. Under the “Important Communication” you could choose the “Subscribed” option as shown below and save the changes.

If you are unable to log in to your account, you can click on this link: Not receiving emails from SMERGERS and follow the instructions provided to re-activate your email address.

Additionally, if you wish not to receive any marketing emails from SMERGERS (and wish to receive only important communication regarding your profile and queries) you can select "No Email" option for New Opportunity Notifications and Business Proposals.

Email Preferences - Edit Email Preferences - 2nd Page

Question 24

A profile which was previously available now says “Transaction has concluded”. What does this mean?

Accepted Answer

This means that the profile owner is now no longer interested in pursuing the transaction. This could be because of a variety of reasons including, but not limited to, successful deal closure with another party, change of plans of the business owner, unavailability of the profile owner, etc.

SMERGERS periodically reviews profiles listed on the platform to ensure they remain current and active. Business owners and members may as well close their profiles when they aren’t keen on pursuing the transaction. Connecting with such profiles would not be possible.

Question 25

How do I contact a business owner when no contact details are visible post introduction on the dashboard?

Accepted Answer

Business Owner has an option to not disclose contact details and name of the business even post the introduction. In such a case an investor needs to leave a message through the SMERGERS messaging system by logging onto their dashboard.

Kindly note the contact and business name on the teasers would either say "Available after connect" or "Not disclosed". The latter implies that the Business Owner has chosen not to display their details. See image below:

- Name, Phone, Email – Available after connect – meaning post introduction these details would be available on the dashboard.

- Business Name – Not disclosed – meaning the name of the business would not be visible even post the introduction.

Question 26

Do my credits get used if I accept a proposal?

Accepted Answer

No, it does not. The system is designed in such a way that no credits are utilised when a member accepts a proposal.

To check the same, you can visit your Dashboard > Introductions and click on "Reply" to check if that introduction was through a proposal.

If the business has sent you a proposal you would see "Sent a proposal" message indicating that no credits have been utilised for such an introduction.

If you do not find "Sent a proposal" message it indicates a direct connect which has utilized your credits

Question 27

Do you provide any analytics on my profile?

Accepted Answer

The analytics which we currently provide are accessible from your dashboard as shown in the picture below. Click on the numbers to view further details:

You can also access Profile Insights from Introductions page as shown in the picture below:

Question 28

What are the roles & responsibilities of an Account Manager?

Accepted Answer

Account managers will be your single point of contact for all queries related to your profile and subscription. They will be available to you over email and phone during business hours. They could also help you with curation and updation of your profile if required.

Below are some of the areas where account managers will NOT be able to assist you:

X Negotiate on your behalf with introduced members
X Providing you with valuation recommendations
X Filtering out or following up on your introductions
X Creating or sharing collateral documents with your introductions
X Participate in meetings/calls with prospective investors/acquirers
X Conducting or managing due diligence exercise

Question 29

How to update company name, tax number and other details in the invoice?

Accepted Answer

Changing a specific invoice is possible only if you have not already saved it and only in the same month the payment was made.

To edit your invoice, log in to your dashboard and click on the top right picture of yours and select "Invoices". Find the invoice which you would like to update and click on "Print Invoice" next to it as shown below. This should open up a page with default billing details from your account. You can edit and save this information, provided it was not saved earlier and the payment was made in the same month. If the invoice is already finalized then it will directly download the invoice without allowing you to edit the same.

To update your default billing details visit your dashboard and click on "Update Details" below your profile card and enter the details as shown below. These values will be used as default details for your future invoices.

Please note that GST number can be updated only on Indian payments and not on Export invoices. If valid GST is updated in the same month of payment and the filing does not reflect on your GST portal even after 3 months of payment you can reach out to us at help@inbox.smergers.com. If you wish to display a VAT/Tax number on your Export invoice, you can add the same next to your company name, for example, "TransTech Restaurants LLC (VAT: 987654321)"

Question 30

Why am I being asked to upgrade?

Accepted Answer

The free plan is available only for your first profile on SMERGERS so you can understand how it works and experience the capabilities of the platform. Kindly note that we allow only one free profile per user or per company and it is possible that someone else from your company could have utilized this free profile. For consecutive profiles you will have to upgrade your profile to enjoy uninterrupted services.

If you are being asked to upgrade on your first profile, it could be because of a variety of reasons including, but not limited to, a similar profile on a different account, expiration of the profile term of your previous profile, default of fee payments towards SMERGERS, inactivity / bad experience for users etc. Please note that we will be unable to provide specific details regarding why your profile was marked as "Needs Upgrade" and any details of the previous profiles due to privacy reasons. You can still continue using our platform, but only on a paid plan as we are unable to provide any free plan services.

Question 31

What should one do if a member or a business owner doesn’t respond post the introduction?

Accepted Answer

Post the introduction if you’re unable to establish initial connect, then kindly report the issue on your dashboard. Ensure you've tried every means to reach out to the party after fetching the contact details available on your dashboard.

However, if the initial connect has already been established and the party is now not responding, then it would simply mean that they may not be interested to pursue the transaction with you. You may follow up after a few weeks if you wish to and then move on and explore the possiblility of connecting with other parties on the platform.

Question 32

When would SMERGERS re-credit an introduction?

Accepted Answer

Users need to report the issue with complete details on the specific introduction on their dashboard within 30 days from the date of introduction. Post reporting the issue, we reach out to the concerned business owner to understand the problem. Kindly note this process may take upto a week. Under the following circumstances, SMERGERS re-credits the introduction:

- No initial contact can be established between the business and the interested member

- Inital contact has been made, but it was learnt that the business is already sold or not available for transaction

- There is material difference between what is mentioned in the profile and the actuals of the business

Please note, SMERGERS may ask you for related documentary proof/email exchanges before accepting your request and recrediting your account.

Question 33

How long does it take to successfully close a deal on SMERGERS?

Accepted Answer

Deal duration is highly dependent on the attractiveness of the industry and business proposal. We have seen deals take anywhere between 10 days to 2 years. Deal duration is also affected by the depth of due diligence conducted, keenness of the business owner and information availability.

Visit our testimonials page here to see the time taken to close deals by some of our members on SMERGERS.

Question 34

Can I send attachments through SMERGERS messaging system?

Accepted Answer

Yes, you can. SMERGERS messaging system offers a convenient and easy platform to exchange attachments post the introduction.

Question 35

Why wasn’t an investor/buyer’s introduction approved who wanted to connect with me?

Accepted Answer

All valid connects gets approved on the platform. When a connect does not get approved, it could be due to a variety of reasons. Every users on SMERGERS is screened after going through an internal process. Users, even after clearing the verification process, need to have required credits to connect with a business. When you receive a successful introduction, you'll be notified via email and text message immediately.

Question 36

What should I do since I haven’t received enough introductions to successfully close the deal?

Accepted Answer

Business credibility and Valuation attractiveness are the two main factors that drive introductions on the platform. Major issues with your profile are automatically listed on your dashboard. Please check your dashboard to see if there are any such suggestions/improvements mentioned for your profile.

The easiest ways to improve your profile visibility and introductions include:

1. Ensure your profile is up to date with relevant information including high-quality images of your business facilities and machines, preferably clicked exclusively for SMERGERS. It is very important to have high-quality images of your business facility to showcase your credibility and boost the number of introductions.

2. Your business proposition and valuation should be attractive enough for an investor/buyer when compared to other businesses listed on the platform. This is one of the most common reasons why you may receive fewer introductions compared to other profiles on the website.

3. Ensure you are using your proposal credits to send out alerts to all investors/buyers that match your business criteria. This is an easy way to reach several prospects in a quick and easy manner.

4. If one of your introductions has a question on your profile, it is most likely that others also have the same question, because of which they may refrain from connecting with you. Ensure you update your profile with information based on past investor feedback.

Also, you may click here to see how to avoid a few common mistakes that business owners typically make.

Click here to read testimonials from some of our members who have recently closed deals on SMERGERS.

Question 37

How do I change my registered email address?

Accepted Answer

Please use one of the below options to change your registered email address:

1. If you are able to log in and have access to your existing email address or phone number: Log in to SMERGERS using your existing email address and follow steps provided this link to automatically update your registered email address: https://www.smergers.com/accounts/migration/

2. If you are able to log in and do not have access to either your registered email address or phone number: Please update your official email address in your profile to the new email address and send us an email at help@inbox.smergers.com from your new email address requesting the change. Please allow 24-48 hours for us to verify and activate the change.

3. If you are unable to log in and do not have access to your registered email address: We regret to inform you that we are unable to change your registered email address. Instead, we suggest creating a new profile on SMERGERS with your new email address in order to continue using our platform.

Question 38

How do I edit my profile?

Accepted Answer

Login to your dashboard and click on the “edit” button to update your profile. Kindly note SMERGERS team can take upto 2 business days to review edits and approve the profile back on the platform.

Question 39

Do I get the investor's contact details after subscribing for a plan?

Accepted Answer

Member’s contact details are available only if they accept your business proposal or directly connect with you. Paid plans give you credits that can be used to send proposals to a certain number of investors/buyers. To learn more click here.

Question 40

Do I need to pay to create a profile on SMERGERS?

Accepted Answer

There are both free and paid plans on SMERGERS. You can choose to have a basic profile on SMERGERS which has Zero listing fee. You can get started by clicking here. In case you wish to upgrade, benefits of a paid plan can be viewed here.

Question 41

Does the ordering of my profile change upon editing?

Accepted Answer

Ordering of a profile does not improve upon frequent edits. In fact it partially loses its visibility when in edited status. See details here. A profile should only be edited if there is any new or meaningful change to the existing information.

Question 42

Where do I see contact details upon introduction?

Accepted Answer

Upon successful introduction, the contact details would appear on your dashboard. Kindly login to your dashboard and click on the number displayed under “Introductions”.

Question 43

How does SMERGERS decide sorting order of profiles?

Accepted Answer

Ordering of business, investor and franchise profiles depends on a combination of factors including listing date, rating, location relevance, industry, transaction type, feedback received, etc. The order is determined by the system and cannot be manually changed. Instead one can work on improving their ratings as provided here as it is one of the important parameters which affects profile ranking.

Question 44

How do I follow up on a proposal sent to an Investor/Buyer?

Accepted Answer

Unfortunately there is no way to follow up on proposals already sent and you can send a proposal only once to a specific member as repeated proposals may be considered spammy. If you don't hear from the investor/buyer, that would mean they have not accepted your proposal yet. If they accept your proposal, you'll automatically receive an introduction and see their contact details in your dashboard. To see the status of your proposals visit www.smergers.com/faq/how-can-i-view-the-status-of-proposals-sent-on-smergers/234/

Question 45

Can I use the same subscription plan to connect with both businesses and investors?

Accepted Answer

There are separate plans to connect with businesses and investors. Buy side plans helps you connect with business owners and Sell side plans helps you connect with investors by sending your business proposal.

If you want to connect with a business, you need to have a valid investor profile and subscribe to a buy side plan.

If you want to connect with investors, then you need to have a valid business profile and subscribe to a sell side plan.

Subscription plan details can be found here.

Question 46

What does physical asset include?

Accepted Answer

Physical assets would typically include equipment, plant and machinery, furniture and fixtures, building and property which the business is offering to the investor/buyer as part of the transaction. Cash in hand, cash in bank and any security deposit paid too can be considered as physical assets as long as these are provided to the investor/buyer as part of the transaction.

Below are a few examples of what should not be considered as a physical asset:

Any asset which is intangible such as Experience, Software, IP, Trademark, Goodwill
Any asset which is not being offered to the investor/buyer as part of the transaction

Question 47

Why some of my edits don’t reflect on the profile?

Accepted Answer

As per the Terms of Use, SMERGERS reserves the right to edit a profile. All business profiles on SMERGERS are on a no name basis and any information that gives out the business / promoter identity is removed from the profile. Also, once a profile has been activated, users can update their profile with new information, but changing the profile materially in such a way that it represents a different business is not allowed. SMERGERS team can take upto 2 business days to review edits and approve the profile back on the platform.

Question 48

Is my profile still visible in the EDITED mode?

Accepted Answer

When a profile is amended, it moves to the "Edited" mode and stops appearing in the list of profiles on SMERGERS, till all the edits are approved by our analysts. But users who you've already been introduced with and users who have bookmarked your page will continue to see your profile. Kindly ensure that you do not repeatedly edit your profile as that will affect your visibility on the website.

Question 49

How can SMERGERS help Business Advisors / Business Brokers?

Accepted Answer

SMERGERS provides a ready made platform for Business Advisors / Business Brokers to scout opportunities on behalf of a client.

If you have a registered business advisory firm or a client mandate, then you may create an advisors profile. Details of both buy side & sell side advisor plan can be found here. Fast Track Bundle plan on the sell side is exclusively available for advisors.

Our analysts will get in touch with you once you have registered on the platform to curate and approve the profile.

Question 50

How do I upgrade?

Accepted Answer

Upon logging onto your dashboard with your registered email id, click on “Upgrade and Send Proposal” / “Upgrade and Connect” and choose the plan as per your requirement.

Question 51

Should I pay advance fees or token money for availing any investment or loan?

Accepted Answer

Do not ever pay any kind of token advance or deposit money before any transaction is made with the investor. No genuine investor/buyer would ask for such a token advance. However, if an advisor is assisting you with a transaction and spending time and effort she/he may charge upfront retainer fee. You should be aware that typically such retainer fee is not conditional on success of the deal. Only if you are completely sure of the advisors prior track record and credentials should you pay such retainer fees.

You could also review best practices for business owners and investors on SMERGERS.

Question 52

I already have a profile on SMERGERS and have a few questions. Can someone call me or can you provide your contact number?

Accepted Answer

We request you to send us your question through the 'Contact Us' page (https://www.smergers.com/contact-us/) so the appropriate team can revert to you with proper resolution or contact you over the phone to clarify your doubts. It would be difficult for us to assign the right person without knowing your queries. If you have subscribed to the professional plan or account manager plan you would have received an email with your account manager's phone number for ad hoc phone support.

You could also check out our FAQs here

Question 53

I had connected with a business / investor and had an initial discussion. However, there is no response now. What should I do?

Accepted Answer

You should provide sufficient time for the investor / business owner to go through the details and then you can reach out to them again to understand their decision. A useful technique in such situations is the ‘call-mail-call’ tactic. Call a business owner / investor and brief them about your business / requirements. Wait for a few days, and then drop an email enquiring if there’re any updates from their end on the same. Fast forward a few days, and then call them again to remind them. This is a good method as it tells the business owner / investor that you’re genuinely interested in making a deal, and also gives them time to make a decision.

Inspite of the above if things don’t progress as per your expectations then it would simply mean that the buyer / seller is not interested at this point in time. You need to move on and start talking to other buyers / sellers. The deal gets consummated only when there is a meeting of the minds between both the members.

Question 54

How to send an NDA through SMERGERS platform?

Accepted Answer

It is quick and easy to send an NDA through SMERGERS website. Just login to your dashboard, click on introductions and select the investor/buyer to whom you want to send the NDA.

Click on “Reply” and select the option "Please sign and share the NDA”. Ensure you are on a premium plan which includes NDA support to be able to send the NDA.

After you click on "Please sign and share the NDA", a pdf NDA attachment appears on the screen which can opened in a new tab and downloaded as well.

Question 55

I was introduced to a Business / Investor on SMERGERS; however, they haven’t reached out to me yet. How do I proceed?

Accepted Answer

If you were introduced to a business/investor on SMERGERS and the initial talks have still not happened, then you may report this issue within 30 days from the date of introduction.

Log into your dashboard, select the introduction and click on the 'Report Issue' button. Kindly ensure proper details of the issue are provided so the SMERGERS team can resolve the same. For further details on how to report an issue click here.

Please ensure you’ve followed up with the business/investor by text, call, email and SMERGERS messaging system before reporting an issue.

Question 56

How can I view the status of proposals sent on SMERGERS?

Accepted Answer

If you’re on a premium plan, you may view the status of all proposals sent. Login to your dashboard, click on “Proposals Sent” as shown below and it’ll list all the proposals along with the status symbol. The status would appear blank if an investor hasn't yet reacted to a proposal. Proposals triggered by SMERGERS on your behalf would appear with SMERGERS logo. Please keep in mind that any proposal sent is counted regardless of the investor's response.

Question 57

Why should a small business develop a business plan?

Accepted Answer

A business plan helps reflect the past performance and projecting the future growth of the business. It’s a guiding force that helps business owner run the business within the broad framework stated in the plan.

A good business plan should cover the points below:

Forecasting Sales – A consistent and predictable sales pipeline allows the business owner to channelize his efforts in diversifying into newer geographies and products thereby expanding the business.

Marketing Strategy – Marketing and other promotional activities should be strategized well in advance. Along with the traditional sources of marketing, a small business should also have a well developed digital marketing strategy.

Equipment upgrades – The plan should focus on any plant & machinery or office infrastructure upgradation that needs to be undertaken during the year.

Expenses management – Expense management becomes very important to effectively run the day to day affairs of a business.

Risk Management – The business should have a contingency plan in place to meet the challenges of any unfortunate events which may arise in the future. Example – Prolonged illness of the Business Owner, Breakdown of a machinery, Sudden working capital crunch, Key employee leaving the organisation, etc.

Balance Sheet and Financial Statements – Balance Sheet & Income Statement is a reflection of a financial health of a a business. This is perhaps the most important section of a financial plan. Healthy financial numbers will ensure business longevity.

Employee, Vendor & Client List - A good business plan should have a list of employees along with their compensation benefits and skill set and market knowledge. Along with this a list of important Vendors and Clients should be included too.

Competition – It’s a good idea to periodically check the business performance against businesses operating in the same industry.

Cash Flow – Cash flow management is numero uno priority for any business owner to run the business effectively. A lot of small businesses depends on cash for running day to day business activities.

Break Even Point - For a small business its very important to understand what is the break even point is. A business will break even when the total sales is equal to the total cost and profit is the amount generated over and above the total business cost.

Employee, Vendor & Client List - A good business plan should have a list of employees along with their compensation benefits and skill set and market knowledge. Along with this a list of important Vendors and Clients should be included too.

Question 58

How to create a franchise business plan?

Accepted Answer

A franchise business plan is an important document which will help prospective franchisee buyers to understand your proposition. The franchise business plan is also referred to as the franchise brochure sometimes.

1. About the brand - When was the company incorporated, what is the perceived value of the brand. How many franchise outlets are there in the market already. It will be good to have a testimonial or two from existing franchisees which will boost the confidence of potential franchisees.

2. Leadership team - Given that the franchisee's are buying your vision and promoting your brand. They want to make sure that the franchise has a solid leadership.

3. Financials and ROI - What is the amount of investment required to buy the franchise. It's good if everything is as clear as possible and no cost is omitted which might surprise the buyer later on.

4. Profit sharing - Potential franchisees' want to make sure what is the amount they will take away at the end of the month. Considering that there are different franchise models, it's better to mention how exactly profits will be shared between the franchisor and franchisee.

5. Operational Guidelines - This consists of a document which could help the franchise buyer understand the rules and processes of running the franchise. It is best to share this document before signing up the buyer.

These are some of the things keep in mine while creating a franchise business plan.

Question 59

How to evaluate a business plan for buying an existing business?

Accepted Answer

Evaluating a business plan for buying an existing business requires some knowledge of the market and some inherent knowledge of the business. Some of the business plans start with grand plans but asking the right questions for all the claims made by the business is a good first step.

Some of the commonly found assumptions/claims are as follows:

Growth - The business plan may have projected a growth of 100% year on year for the next 5 years. While it is achievable, the question you should be asking is, what has the company achieved in the past 3 - 4 years. Will I be able to pull off such a growth in the coming years, post the acquisition? And if the future prospects are looking so bright, why is the business owner exiting at this moment.

Market - While market sizes can be huge on paper, a good question to ask is, will this business be able to capture a good chunk of the market size in the coming years.

Competition - Who are the competitors of the business and how do they differentiate from this company? Why would this company stand out and perform better than the competition?

Understanding these aspects may give better insights into how one can evaluate a business plan for buying an existing business. If you are interested in understanding what are the typical sections of a business plan please visit this link.

Question 60

How to sell my business quickly?

Accepted Answer

Typically a business would take anywhere between 2 – 24 months to execute the sale transaction. But businesses selling out within 2 weeks itself is not unheard of. To hasten the process of selling the business, consider below points:

1. Valuation can make or break the deal. Positioning the sale price of the business at an attractive level can reduce the time taken to sell the business drastically. You can view typical business valuation here and price it at the lower level to make it attractive.

2. Businesses which have offers from other buyers are the ones which get sold quickly as there is a sense of urgency. Ensure you have several interested buyers rather than talking to just one buyer. You can get started by creating a profile for your business here and receive buyer introductions within days.

3. Keep all your documents, audited statements, tax returns, guides, contracts, etc readily available as these are required for the due diligence process which typically lasts a few weeks.

4. Even post selling, business owners will be asked to continue for a period of 6-12 months for handholding and graceful takeover. If you want to move on quickly, ensure the business is not overly dependent on you, the business owner.

Question 61

Do you have a business valuation calculator on SMERGERS website?

Accepted Answer

Yes, we have a simple yet effective business valuation tool on SMERGERS website, which is based on average multiple derived from comparable firms, to guide business owners to quickly estimate a valuation range for their company.

Question 62

Should I even bother getting my business valuation done?

Accepted Answer

One of the first steps during a strategic business transaction is projecting future growth and understanding the valuation of the business. The valuation exercise brings out a lot of insights and helps the business owner understand levers which could improve his business’ valuation. We observe that the chances of a successful deal closure at a fair valuation is higher when a business owner clearly understands his business’ valuation.

Question 63

What do you mean by multiples in business valuation?

Accepted Answer

Multiple is usually the factor applied on various financial metrics to arrive at fair valuation for the business. Multiples move in a band and differs from industry to industry. An industry enjoying consistent growth in good economic conditions tend to command multiples which are at the top end of the band. Multiples are generally used with Sales, EBITDA, Free Cash Flow to arrive at a valuation. For example, “1.5x Sales” means multiplying the annual sales by 1.5 gives you an estimate of the valuation of the business.

Question 64

What is the cost of preparing a business valuation?

Accepted Answer

Please visit Business Valuation page to check the latest price for the same.