Selling a Business

Selling a business is a complex process with many steps along the way and requires extensive planning and research as each business is unique and finding a qualified buyer for your company takes time and experience. Business owners work hard to build their business over the years. Lot of time, money and effort goes into building a business. Many business owners are the operators as well, being an operator is not easy and we understand that being a business owner and the hats we have to wear to get thing done. Most business owner neither will have the time or experience to sell a business.

The value we provide is a key step in selling a business as you can still run the business as usual and continue to keep growing after all that will be what a buyer who wants to purchase will be looking for “ Growth” .Many important steps are described below for a better understanding of what it takes to sell a business and the process combined with our experience ,accurately represents you and your company to the buyers out there .We will make the process very confidential ,ethical and honest guiding you along the way and generate the highest amount of market exposure to achieve the desired final outcome of selling a successful business .

Here are the basic steps to selling a business

Planning

step 1

Planning

Many sellers assume that selling a business starts with a contract and listing it for a agreed listing price, that is true if the planning phase of the sale has already been completed but most business owners are not aware of this fact. If a business owner is planning to sell there is a lot of pre work which needs to completed like: Three years of accurate financial statements (P&L) ,Tax returns for the business, List and cost of equipment, Inventory, agreements(Leases, Equipment, Franchise & Loans) .Many individuals and family owned business use their business accounts for personal expenses which are called add backs as these expense are not the cost of doing business , the books need to be cleaned up and all the cash received needs to be booked and validate (taxed).It is not unusual that lot of retail business does not book the cash and might be doing very will with the business but if the taxes are not paid there is no way to prove to the buyer that business has lot of cash income and could not be sold for the desired price/top dollar. Buyer applying for a loan to buy your business needs to prove to the bank that the business they are purchasing is a good cash flow business or else they might never get a loan hence difficult to sell a business. We as your dedicated broker will guide you to plan properly and sometimes even help in planning years ahead to sell the business in near future if selling it now does not make sense.

Business Analysis & Valuation

Based on the all the process mentioned in the step 1 we can analyze: finances, operations, profitability, current market analysis, growth potential ect..) . Using this information which is technically based on solid facts, we can value the business and provide a price range that you can expect the business can sell for in the current market conditions. The valuation techniques we use ensures that the business is priced appropriately, This is a key step because if the valuations of the business is higher than the market value the business will not sell and if the valuation is under market value there is a very good chance of seller is leaving the money on the table.

step 2

Business Analysis & Valuation

Marketing & Confidentiality

A detailed and attractive business profile will be prepared / marketed using the latest technology such as online listings, publications and various industry and buyer database to provide maximum exposure for your businesses. This proven method has been used to sell hundreds of businesses We ensure and understand that confidentiality is very important for seller that is reason we create blind ads without listing the business name and location. Initial details we provide are the type of the business and the attractive aspects of it such as the selling price, Gross revenue, Cashflow and Real estate details. We control the flow of information yet aggressively market the business ensuring your confidentiality.

step 3

Marketing & Confidentiality

Buyer Screening & Pre-Qualification

Once the business is listed for sale using the techniques briefly discussed in step 3 ,Various business brokers and buyer will contact us and screening them becomes very important to understand if they even qualify to buy the a business, what exactly they are looking for, do they have the financial ability and many other factors after the pre-qualification the buyers are required to execute to a confidentiality agreement before releasing any information regarding the business other than the listing information. We answer the buyers’ questions as per the information gathered during the business analysis phase and contact you only when required which allows you to run your business as usual or even improving it. We always need the current operational and financial information to keep our marketing information updated for the buyer /buyer broker.

step 4

Buyer Screening & Pre-Qualification

Qualified Byer/Seller Meeting & Offer

step 5

Qualified Byer/Seller Meeting & Offer

Once a most qualified buyer (Financial able) is selected who at this point have already reviewed the business profile and interested in purchasing the business usually ask for meeting with the seller and also like to visit the business in person. These kind of meetings and visits are usually done after hours or during the weekends when the employees are not present to avoid any premature disclosures to employees and customers so all the showings are confidential and by appointment with the seller. In most sales this is the first time a potential buyer will be looking at the facility and meeting the seller as a business broker it is our duty to schedule all the appointments and arrange the meeting and we are usually present at the meeting as a mediator. During and after the meeting buyers will have more questions regarding the business and operations which needs to be handled accordingly and this can continue for weeks and months based on the type of business. After all the questions are answer the buyer will make an offer. Appropriate negotiation is very crucial to get the best possible price and terms that is where we thrive, we have the expertise and right negotiation techniques. It is all about finding the right balance between the buyer and seller so it is a win win situation for both parties.

Due Diligence

Once a price is agreed upon and contractual agreement is finalized the due diligence process starts and this last process in the sale which takes time as the buyer and their parties like CPA, Banks, Tax Professional sometimes even attorneys basically go though all the documents necessary to make sure the seller has provided accurate information. Additional documents and meetings can be requested and we are there to assist every step of the way to make sure this is coordinated well and supply with the information the buyer is requesting. Monitoring and managing due diligence is very crucial as this is a stage where the deal can take a wrong turn. We always ask and inform the seller to represent the business fact as they are because during the inspection if the buyer and their agents are not comfortable with the business they can just walk out of the deal and we are there at every step to make sure they understand the documentation and facts properly and coordinating with you simultaneously.

step 6

Due Diligence

Closing

step 7

Closing

As lot of brokers say finding the right qualified buyer is one half of the work and the other half is getting the buyer to the closing table. In this stage of the buying process most of the work is handled by the attorneys of both parties: Lien searches, non-compete agreements, closing documents, bill of sale, license transfers, utility transfers and many other processes as every business is unique. After the closing documents are approved by the buyer and seller a closing date will be set and closing takes places, funds and ownership will be transferred. Now the process of training the new owner takes places as per the pre decided agreement. We help manage all administrative procedures, licenses, inventory counts and lease assignments that may be required. Transworld works closely with your advisors to ensure a smooth transition These are the basic steps involved in selling a business, we will be there to assist you in every step of the way answering additional questions which may arise during the selling process hence a business broker like us can be helpful in many ways and are a trusted source of information about the selling process handling all the details of the business sale to guide you in the right direction with the consultation of other professions as discussed above .You will discover that with our assistance you can have a seamless and successful experience in selling a business.

The bottom line

Being in business for yourself can be a daunting prospect. There are no guarantees. At some point, after all of your investigation is completed, you will still have to make that “leap of faith” that is necessary to proceed with the purchase of the business. You will have to work hard, perhaps even “tighten your belt” a little, and perform many different jobs to be successful in your own business. But, if running your own show, making your own decisions, not having to worry about job security (remember, no one can fire you from your own business), and just being on your own are important – then owning a business is for you. After taking this leap of faith, almost all business owners will tell you that they would never go back to being an employee.

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