Seller FAQ

Selling your business requires careful planning. First, ensure you're ready both emotionally and financially. Get a professional valuation, organize your financials, and address any legal or operational issues. A business broker can help market your business, negotiate with buyers, and guide you through due diligence. Finally, work with your team to close the sale and ensure a smooth transition. For more information, check out How to Sell Your Business.

An exit plan is a strategic roadmap that helps business owners smoothly transition out of their business while maximizing its value. It involves setting goals, understanding business valuation, exploring exit options, and planning for a seamless transition. Whether you’re planning to retire, sell your business, or pass it on to family, having a well-thought-out exit plan is crucial for securing your legacy and achieving your financial goals. To learn more about understanding the exit planning process and why it matters, visit our exit planning informational page.

Confidentiality is, perhaps, the most critical issue for a business broker. Virtually every business seller doesn't want his employees, customers or vendors to know that his business is for sale. Transworld is very cognizant of this fact and in every step that we take we emphasize confidentiality.

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.

The due diligence process involves a comprehensive review and analysis of a business before completing a transaction. It includes evaluating financial records, legal documents, operations, and other critical aspects to ensure an accurate understanding of the business's value and potential risks. Read More

Transfer of the lease is crucial to the success of the transaction. It will be almost impossible to consummate a deal unless the lease can be transferred. Leases will have a clause that defines the landlord's rights regarding transfer. Frequently the seller will be required to remain as a guarantor of the lease and often there may be a charge by the landlord for the transfer.

This is a difficult one, it is very, very difficult to prove to a prospective buyer that you have earned income that has not been reported. The only suggestion here is if you are not reporting income stop right now and maintain accurate records including all income. There are some businesses that do sell in spite of this fact.

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.

Analyzing your business' value or worth is another crucial intermediary function. "The Market" makes the final determination of value. At Transworld, we have tremendous experience in valuing almost any business. Our estimates are not "certified business valuations," although we can provide this service for a fee. However, our experience and volume of comparable businesses allow us to give the business owner a very good estimate. To get a ballpark estimate of the value of your business, use our free business valuation calculator.

This can be handled in many ways. Often the property is sold as a separate listing. However, the company owner will frequently retain the property, obtain a long term lease and earn an ongoing cash flow stream. Also, the property can aid a buyer's ability to finance the business.

Most small businesses are sold with the seller retaining cash and accounts receivable. A working level of inventory is generally granted to the new owner.

Most often, the company is sold free of all debt. This means that the former owner will be responsible for accounts payable as well as all long-term debt.

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 have a list of the ten most important things that you can do to improve your business before selling, and you can review them on our website.

Today, no later. Even if you think you are not ready to sell your company right now you can't start preparing too early. One of our experienced agents will be more than happy to meet with you to help you to start thinking about your exit strategy. Learn: Why is an Exit Plan is Important?

Buying or selling a company can be a complicated venture. While some companies are sold without the help of accountants and attorneys, we strongly recommend that both the buyer and seller engage professionals.