Question 1

What is seller financing?

Accepted Answer

Seller financing is a common way to finance small business acquisitions. It involves the seller providing a loan to the buyer to purchase the business, in which the seller will receive the payments in installments following a substantial down payment. Many business owners offer this option to buyers to help bring in more buyers and complete a transaction. However, seller financing agreements should be reviewed by a lawyer and should distinctly outline the corrective actions that would enable the seller to pursue any available legal remedies in the event of a payment default.

Question 2

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 3

My profile was previously activated but is now "Closed" or "On hold" even though my subscription has not expired. Why?

Accepted Answer

We regularly scrutinize profiles, and depending on the results of our routine checks and input from users of the platform, your profile may be flagged for a re-verification. It will remain in the inactive state until the verification process is completed by the team. Please write to us with any proof/documents which could help us verify and re-activate your profile faster.

Question 4

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 5

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 6

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 7

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 8

What if I pay the finder's fee and then the buyer/investor backs out?

Accepted Answer

SMERGERS Finder's fee would be applicable as soon as a definitive agreement is reached between the parties or on receipt of the first tranche of payment, whichever is earlier. In cases where the buyer breaches the definitive agreement, the parties involved will have to settle it through legal recourse.

Question 9

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. You may reopen your profile anytime within the subscription validity.

Question 10

How are notifications generated on my dashboard?

Accepted Answer

Dashboard notifications are based on the location and industry preferences set in your account. 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 11

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 12

I have problems with the party I closed a deal with. What can I do?

Accepted Answer

SMERGERS is an online marketplace that connects businesses, investors, franchises and advisors. While we carry out basic checks on profiles that go live on the platform, the final responsibility of conducting thorough due diligence prior to deal closure lies with the users. You may also refer to the best practices.

If there is any transaction related concern at any stage, then both parties need to resolve it along with their concerned team and, if necessary, seek legal recourse. SMERGERS would be unable to mediate such disputes between parties as it is beyond the scope of our services. However, we encourage the aggrieved party to report the issue by sharing complete details and documentation so that our team can go through it, investigate the matter, and take appropriate steps on the platform as deemed necessary.

Question 13

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 14

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 15

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 16

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 17

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 18

How to archive introductions I'm no longer interested in?

Accepted Answer

All introductions that you no longer wish to pursue or have been concluded can be archived by clicking on the "Archive" button on the bottom left of the introduction card as shown below. All archived introductions can still be accessed by clicking on the "Archived" tab on top of the introductions page.

Question 19

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 20

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 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 21

How do I close my profile?

Accepted Answer

Login to your dashboard and click on the "Close" button on the profile which you would like to close. Refer to the image below:

Kindly note, closing a profile does not mean that we will be deleting your information permanently from our database. We retain confidential information from closed accounts to derive industry knowledge, comply with law, prevent fraud, collect any fees owed, resolve disputes and take other actions otherwise permitted by law.

Question 22

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 23

What formalities need to be completed post successful deal closure?

Accepted Answer

Once a deal is successfully closed, as per T&C, both the investor/acquire/advisor and the business should promptly disclose in absolute good faith the correct transaction value and transaction closure date to SMERGERS by sending an email to info@smergers.com within 2 business days of transaction closure.

The business/franchisor is also liable to pay the finder’s fee, except in the case of advisor listed profiles as per the contractual agreement. In case of non-compliance, the onus falls on both investor and business to clear the finder’s fee along with penalty interest of 4% per month. Failure to do so would attract legal action from SMERGERS.

Question 24

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 25

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 26

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 27

How can I apply for small business loan?

Accepted Answer

In order to apply for a small business loan, you will need to ensure that the following requirements are satisfied.

1. Documents - Please ensure that all the documents required for a business loan are intact, it could be in the form of trade and commercial licenses, articles of incorporation, balance sheet, Income tax returns, identity proofs etc.. Different banks will have different requirements, it is best to check with the local organization before you start the process.

2. Build your credit scores - You personal credit score and that of your business will be of utmost importance. It is very important to ensure that they are healthy. One could maintain a good credit score by making timely payments to any money that has been borrowed from different organizations.

3. Collateral - In most of the cases, a collateral is required to get loan from banks. If you are planning to use a collateral, please ensure that you have all the required documentation intact.

4. A good business plan - Having a clear idea of what you are going to do with the money will make it very easy for the lender to asses your case.

5. Management Team - Lenders will feel comfortable to lend when they understand who they are giving their money to. A good amount of information about the management team may help them make their decision.

It is worth exploring your options by talking to several banks, some of them may have a relaxed criteria for lending, at the same time some of them (with a collaboration from the local government) may have special offers to promote small businesses. To connect with several banks you can register your business details and loan requirements by clicking here.

Question 28

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 29

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 30

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 31

What is the cost of preparing a business valuation?

Accepted Answer

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

Question 32

How long would it take to prepare a business valuation by Team SMERGERS?

Accepted Answer

It takes 20 business days to prepare a valuation model from the date of receipt of all the necessary documents / information & requisite fees.

Question 33

What are the common mistakes while preparing a CIM?

Accepted Answer

A CIM can be an extremely effective document if one can avoid the most common mistakes listed below
1. Unrealistic projections by the business.
2. Underestimating or claiming no competition.
3. Overestimating market potential.
4. Mismatch between cash flow and investment needs.
5. No relation between Revenue and Expense projections.

Question 34

What is the cost of preparing a CIM?

Accepted Answer

Please visit Information Memorandum page to check the latest price for the same.

Question 35

How long would it take to prepare a CIM by Team SMERGERS?

Accepted Answer

It takes 20 business days to deliver a CIM from the date of receipt of all the necessary documents / information.

Question 36

How can I be sure about privacy and confidentiality?

Accepted Answer

We understand the level of confidentiality required in strategic transactions and we strive to provide a safe and secure experience for our members. Please review our privacy policy. We also use SSL technology to encrypt confidential information, including business data, personal information and passwords.

All profiles on SMERGERS are displayed on a "no name" basis (except Institutional Investors, Advisors and Franchises). Attachments on a business profile are visible to specific members only after the introduction is made. Businesses also have an option to not display their business name and contact number even after the introduction. In such cases, the onus is on the business to reach out to the investor after they receive an introduction. Further, post introduction, it is advisable to get an NDA signed before exchanging any sensitive information.

Kindly note that the final responsibility of conducting thorough due diligence and sharing information lies with the users. If the user has a dispute with one or more other users, SMERGERS is not liable responsible for any damages arising out of such disputes.

Question 37

What level of due diligence does SMERGERS conduct on the businesses/member?

Accepted Answer

SMERGERS scrutinizes all profiles and only features a select group of businesses, investors, advisors that meet a basic requirement. When required, certain members may have submitted some form of proof before their profile is approved on the website and this is not shared with other users. The final responsibility of conducting a thorough due diligence and taking the transaction forward lies with the users. SMERGERS is a marketplace for connecting business sell sides with investors, buyers, lenders and advisors and neither SMERGERS represents nor guarantees that the information mentioned on the profile is complete or correct.