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The Process of Buying a Business: Common Questions to Ask When Looking At a Business to Buy

When you are beginning the process of buying a business, you want to know as much about it as possible so that you're fully aware of what you're getting into and you can make an informed decision. The trouble is that you don't know what you don't know. That is to say, that you can't possibly find out everything there is to know about the company, nor can you foresee what detail or aspect you’ll later wish you'd had knowledge of.

Through your standard due diligence, you should be able to find out about the company's financials and its processes. For topics that extend beyond that, we compiled a list of questions to ask when buying a business that might help you cover more ground.

What Skills, Abilities, And Qualities Does The Owner Of This Business Need To Possess to Be Successful?

It's important for anyone interested in buying a business to have a clear understanding of what it takes for it to operate successfully and to recognize whether or not they possess those required qualities. If a business requires the owner to greet customers or speak publicly, it would be best if the buyer had an outgoing personality.


How Diversified Is Your Customer Base

A company may look like it's performing very well on paper, but if the majority of the revenue comes from just one or two customers; it's a sign of instability. Should the company lose one of those key customers, the repercussions could be disastrous.

Note: it's also a warning sign if the company relies on a single supplier. If that vendor were to go out of business, the future of the company could be jeopardized.

What Do Your Employees Intend To Do After The Sale?

The last thing a new owner wants to deal with when they buy a business is to have the staff exit all at once. You’ll want to make sure that employees are aware of the fact that the business is for sale and if any key member of the personnel is considering leaving.

How Was The Asking Price Arrived At?

While some sellers will decide on a price based on verifiable factors such as the company’s revenue making history, its current assets, and its potential for growth; others may take a more arbitrary approach. Perhaps the selling price has more to do with what they need for the next phase of their life more than the business’ actual value. With an understanding of this, you can gauge how much room there might be for negotiation.

What Are The Biggest Challenges Facing The Company Today?

As a prospective buyer of the business, you want to have a clear understanding of what the possible problems you'll be dealing with as of the day one. If there are problems that are insurmountable or challenges that are beyond your abilities, you’ll want to know about them now, before the negotiations take place.

More questions may come up during the process of buying a business based on the responses you get from these. Ask all the questions you feel you need in order to be sure of your decision.

Are you looking for a great business opportunity in Minnesota? Review the many businesses for sale in our current listings.

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Ten Steps To Selling Your Business

Our Sellers except us to achieve the highest and best offer for their business while taking the least amount of their time away from it as possible. That is because the absolute best use of their time is to continue to run and grow the company.  If revenue or profits begin to decline, buyers will walk away or decrease their offer. Transworld's philosophy can be summed up in a ten step, how-to strategy that culminates with the sale of a company. This proven method has been used to sell hundreds of businesses.  Here are the steps. Step1 Comprehensive Business Analysis and Feedback As your business broker, the first thing in our how-to strategy is to analyze your operation, finances, market potential and industry trends. We take that information and advise you on steps to prepare your business for sale, and  generate a business profile that represents your company in the most attractive way possible. Step2 Sale Structure We identify the best possible price range to sell your company. This is based on solid facts, the condition of the market, projected growth, sales potential and the sale of similar businesses within your industry. Transworld’s experts apply sophisticated, time-proven valuation techniques to ensure that your price is appropriate for the current market condition. The price must not be too high or too low. Yet, it must represent an attractive investment potential for the buyer. Step3 Confidentially Network The Business For Sale During the selling process, we utilize the latest technology to present your company to other business brokers and strategic buyers all over the world. This greatly multiplies the effort in your favor. With Transworld Business Advisors, you have literally thousands of industry professionals confidentially representing your company to buyers.   Step4 Confidentially Advertise To Buyers Our aggressive marketing program ensures your confidentiality and provides maximum exposure for your company. Your listing is placed in various industry databases, Internet sites, and publications which are constantly updated. We spend more money in advertising and marketing for buyers than anyone else in our industry. Step5 Control The Information Flow We organize all necessary documentation and release information only as needed. We use limited information when advertising to maintain confidentiality. Buyers are pre-qualified and required to execute a confidentiality agreement before receiving any sensitive business information. Step6 Create Competition For Your Company We attract thousands of buyers, creating competition for your business. Buyers are qualified for financial ability to meet the offer, and we engage you with only the most qualified buyers. Once you meet the best of the buyers, we urge them to prepare and present all offers. We can continue to engage potential buyers on your behalf as negotiation on an offer is in process and have another interested party ready to go should a buyer change their mind. Step7 We Negotiate For You To Achieve The Best Price Appropriate negotiation is crucial to achieving your best price and terms. We have the expertise to establish sound and resourceful negotiating techniques on your behalf. Transworld has trained all of its agents in the art of negotiating through curriculum that we have created specifically for our industry. Never negotiate without planning, expertise, or from a position of weakness. Step8 We Provide Exceptional Support To You Through The Due Diligence Process We take pride in our exceptional service. Only half of the job is finding the right buyer who will pay your price and meet your terms. The other half is getting that buyer to the closing table. We quarterback the deal, work with the accountants, lawyers, banks, landlords, and other third parties that could jeopardize the success of the transaction. We realize that you depend on us to guide you through the sale of your business. We make the transition simple and easy for you. We know when an opportunity for you may arise and are always there to take advantage of it. We also know when someone is trying to kill your deal or is being unreasonable and how to handle those situations. Step9 We Are There From Beginning To The Closing 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. Using the latest technology, we strive to be ready to work on your behalf to get the deal done! Step10 We Are There For The Transitional Phase And Beyond! Because we are in the business community, you may want to consult us from time to time after the sale. We will provide you with the assistance after closing. Transworld will always remain in your corner! Schedule Consultation Now

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