Selling a business requires careful planning, including knowing what buyers are looking for, how to clean up the books and tax records, and how to present a business in the best possible light.
What to Expect – Selling a Business
Smart sellers understand their competitive advantage, what a realistic asking price is, and a potential buyer’s qualifications, well before they begin negotiating.
According to IBBA, only 10% of businesses for sale actually sell. Business Brokers educate sellers and help them prepare for a sale, doubling the likelihood of a successful close.
Showing a positive sales trend and having enough cash flow to support a new owner's income and financing, for example, can lead to a quicker sale (most businesses take a year to sell) at the highest possible asking price .
In the next ten years, more businesses will turn over as baby boomers continue to retire. According to the online business marketplace BizBuySell, it’s a good time to sell: a record 10,312 small businesses sold in 2018. Contact us for a free consultation today.
Find Your "Why"
When deciding to sell your business, the first question to dig into is: Why? Not only will your potential buyers and advisors be interested, so will nearly everyone in your personal and professional network. Whether you’re motivated by retirement, conflict, crisis, or opportunity, be prepared.
Take Your Time
A business sale can take six months to a year – even a multi-year process isn’t out of the question. By taking the time to prepare your company for sale, you’ll stand out from those who don’t and appeal to wider range of buyers. Adequate preparation takes time and provides value.
Enlist Your People
Enlisting professional advisors can provide you with financial savings and help you navigate the selling process. Trust your instincts to know if you need help with accounting, taxes, real estate transfers, legalities, transactions, vendor relations, and inventory matters. Partnering with a good business broker or advisor can provide invaluable support.
Determine Value
Valuating a business is far from a black and white process. The number of variables can be astronomical. Some industries use profit, revenue, and other use cash flow. Begin by obtaining benchmark data from within your industry, and remember to account for seasonality.
Keep it Confidential
A breach of confidentially can put a serious dent in your plan to sell a business. If word of the sale spreads throughout the company, staff and customers may wonder how the sale could affect them and seek exit strategies. Work with individuals and advisors who guarantee discrete marketing and proceedings. Keeping your process confidential is necessary for maintaining your bargaining position.
Meet Prospective Buyers
Buyers understand good business – but you need to articulate your vision, and clearly identify your growth story. Preparation and focus is especially important during this progression. Knowing which information to share and how to handle conference calls can make or break the selling process.
Preparing to Sell
When you’ve decided to sell your business, you’re faced with months of details, consideration, and process. This often happens in conjunction with still running a business, and maintaining revenue, employee and customer satisfaction, and strong brand recognition. Transworld will handle all the aspects of the sale so you can remain focused on what matters.
Managing Expectations
Another aspect of selling your business is managing the expectation and responses of others – your family, business partners, community, and competition. Transworld will work discreetly and earnestly, arriving at the point where it makes sense to publicize the sale, only when it makes the most sense.
Determining Your Business Valuation
Valuation is the number one question of all our sellers when contemplating a sale. On the flipside, it’s also the concern of many buyers when purchasing. There isn’t an easy answer or basic algorithm to provide the exact value of a business.
Fair market value – the price at which the property would change hands between a buyer and a seller, when neither is at compulsion, and when both obtain reasonable knowledge of relevant facts.
Intrinsic value – stock values that investors would consider.
Fair value – legal standards to value.
Investment or strategic value – the value to specific buyers.
The single, most effective way to gauge the value of your business is to speak to someone at Transworld – reach out now.
Recently Sold Businesses
Roofing Business
Hair Salons & Spas
Auto Body Shops
Restaurants
Lawn Service Businesses
Gas Stations
Insurance Agencies
Coffee Shops
Commercial Buildings
Manufacturing Businesses
Fast Food Franchises
Fitness Businesses
Cold Storage
Land
Trademarks
The Selling Process
There is more is to selling a business than the highest and best price. The facilitation of the process and managing expectation can be handled while keeping your integrity as our main focus. You have a business to run and customers to satisfy, so Transworld will ensure that happens while diligently working to find you the perfect buyer for your business.
Your Business Story
Every buying decision is driven by emotion – then logic and facts are used to justify that decision.
Think about your past year. Do you remember the numbers and stats, or do you remember the stories that created those stats? Almost everyone remembers the stories and almost no-one remembers the numbers. Without the story of why a buyer needs your business, the numbers aren’t that motivating.
The story is crucial. Let us help you tell your story!
Free Checklist for Sellers
You're just a few questions away from determining whether the time is right for you to sell!
Frequently Asked Questions for Sellers
Have more questions? View all of our seller FAQs at the link below.
How long will it take to sell my company?
There is a great deal of variation in the time frame, but, if we had to pick an average time, eight to nine months may be close. While this may sound like a long time, all of the facets of selling a company, including listing the business, finding buyers, interviewing buyers, writing contracts, due diligence and finally the closing process are all time consuming.
What is selling my business going to cost me?
Transworld has no upfront fees. We will analyze your company and go through the entire process with no cost to you. Your only obligation is when we find a buyer for your business. We traditionally receive our payment at closing.
What records are you going to need from me to help sell my business?
The lack of good business records is the single most common reason for a business sales deal to fall apart. We can`t emphasize enough the importance of maintaining good books and records before selling. This includes accurate financial statements, cash register receipts or whatever records are necessary to prove income and expenses. Of course, current tax returns are a must. However, we are used to selling businesses that may have less than adequate records.
We're Here to Help Sellers
From business brokerage to mergers and acquisitions, we are the business sale specialists.
“Transworld was wonderful to work with and they were very professional. They found buyers that we never even thought of or would have been able to find. Mark did a great job at being on top of everything and was always available to talk things through. The process was very smooth with them and they moved very fast on getting the business sold. Would highly recommend them.”
– Rachel, Business Owner
Your Goals Are Just the Beginning
Talk to one of our Advisors today about next steps.
.jpg?width=2400&name=BDI_1513%20(1).jpg "Sell A Business | Transworld Business Advisors | Minnesota")
.svg){kind=small}
(888) 290-5232
