SELL A BUSINESS
The Selling Process
Our sellers come to us to help them achieve the highest and best possible price for their business while taking the least amount of time from them and their company. We know that a business owner’s time is more valuable when invested in continuing to run their company. In order to achieve the best price, a company must continue to grow. After all, that is what a potential buyer will be looking for.
01
Understanding Your Goals
We meet with you and perhaps your advisors to understand your future goals. There can be many situations that could be present.
- Your company is growing and you need capital.
- Your company is growing and you need expertise to take it to the next level.
- You would like to take some chips off the table.
- You need to retire and there are no family successors.
- There are family successors and they will need capital and/or expertise.
- You have been approached by your competition to sell your business.
- There is an industry consolidation happening.
- The marketplace is changing and you cannot or are not willing to invest to keep up.
- You’re tired and want to do something else with your life.
- Whatever the issues are we need to understand them completely.
02
Review Your Options
There are many options that you must consider. Transworld can help you understand them all.
- Your company is growing and you need capital.
- Your company is growing and you need expertise to take it to the next level.
- You would like to take some chips off the table.
- You need to retire and there are no family successors.
- There are family successors and they will need capital and/or expertise.
03
Valuation
There are many options that you must consider. Transworld can help you understand them all.
- Should I pay for a valuation? How much? (Not 50k!)
- What multiples apply to my business?
- What methods or rules of thumb are used in our industry?
- Do assets matter?
- Do you apply gross sales?
- What are the tax implications?
04
Create A Strategic Plan
Those who fail to plan, plan to fail. Transworld merger and acquisitions will set up a plan of action to take your business to market.
- Which buyers do we approach first?
- How do we get the best price?
- How do we create completion for the deal?
- How do we keep it CONFIDENTIAL!
- How do we prepare the right marketing package? (Deal book!)
05
Network and Market the Sale
Transworld is one of the largest and most successful business sale organizations in the country! We work our merger and acquisitions differently!
- The multifaceted approach. First strategic buyers, then financial, then open market.
- Create competition for the deal! To get you the best price!
- Qualify buyers.
- Review their qualifications.
06
Meet With Prospective Buyers
Transworld will attend most meetings with buyers and be present on conference calls. We will prepare beforehand. We will also have a post meeting to go over how the meeting progressed.
- Meet with only the best buyers.
- How to handle conference calls.
- How to handle face-to-face meetings.
- Limited but important information.
07
Solicit And Review Letters Of Intent (LOI’s)
Transworld is one of the largest and most successful business sale organizations in the country! We work our merger and acquisitions differently!
- Who’s the best buyer?
- Cash, notes, earnouts, stock, escrow?
- Senior debt, mezzanine, secondary?
- No shops and non-solicitation agreements?
08
Negotiate the Sale
Transworld has an in house rigorous training program to refine negotiating skills. Most companies in the M&A process are professional buyers, you need an expert on your side.
- Negotiation never ends.
- What should be in the LOI?
- When should the definitive agreements be drawn?
- How long for due diligence?
- Who pays the attorneys or CPAs?
- Is an audit necessary?
09
Due Diligence
50% of unmanaged deals die in due diligence. Transworld will quarterback this process and keep everyone in the game.
- What information is necessary?
- Where is due diligence done?
- What to do when the buyer asks you to cut out the intermediary, your attorney, or CPA?
- How not to get a “haircut” as the deal progresses!
09
Due Diligence
50% of unmanaged deals die in due diligence. Transworld will quarterback this process and keep everyone in the game.
- What information is necessary?
- Where is due diligence done?
- What to do when the buyer asks you to cut out the intermediary, your attorney, or CPA?
- How not to get a “haircut” as the deal progresses!
08
Negotiate the Sale
Transworld has an in house rigorous training program to refine negotiating skills. Most companies in the M&A process are professional buyers, you need an expert on your side.
- Negotiation never ends.
- What should be in the LOI?
- When should the definitive agreements be drawn?
- How long for due diligence?
- Who pays the attorneys or CPAs?
- Is an audit necessary?
10
Close the Deal!
Once due diligence is over, then the merger and acquisitions process must be completed. Transworld will work tirelessly to get the transaction closed!
- Review and negotiate definitive agreements.
- Follow up with financing sources.
- Arrange real estate sales or lease transfers.
- Notify key employees at the appropriate time.
- Help arrange wire transfers.
- Make reservations for the celebratory dinner! (Perhaps even pick up the tab!)
