As expert business advisors at Transworld, specializing in sell my business services, we understand exactly where you are in your journey. With firsthand experience, trusted business selling agents, we each strive to be the kind of broker we wish we had when we were in your shoes, ready to sell.
Congratulations on achieving what many only dream of and discuss. You successfully established a business in Colorado and made it flourish despite the challenges. Now, Transworld is here to help you exit the business with the same level of triumph. By collaborating with us to sell your business through our expertise in Colorado Business Brokers, you can shift your focus towards your next venture while we take charge of positioning your business for sale in the current market. Our goal is to secure the best possible return on your years of investment.
At Transworld, we believe that selling your business should not be a needlessly complex process. It should not consume your valuable time, which could otherwise be spent on your business and loved ones.
While startup companies are inherently risky ventures (50% fail within the first 5 years), buying an established Colorado business is a great way to become a business owner.
And an existing business comes with other benefits:
We have used Transworld to help with selling our business in 2017. Although it took longer than we would have liked, the transaction process was very seamless and thorough. It was our impression that both us, the seller, as well as the buyer, felt the entire procedure was very much done by the books and conducted in a professional manner. Our consultant, Roger, was very knowledgeable in commercial sales so that made us feel very confident in the abilities of this firm. If we ever have another business to sell, Transworld will be our go-to channel.
David Guo, 2019
Confidentiality during a business sale is the most critical issue for a business owner and should be the number one priority for a business broker. We take confidentiality extremely seriously and in every step and every interaction we are protecting your business first.
The time it will take to sell your business depends on many different factors including asking price, market trends, market size, and geographical region. Our average time to sell is eight to nine months. This may sound like a long time, but if you take into account all of the steps that must happen between listing a business for sale and closing – the process actually moves quite quickly.
If you are on a tight timeframe to sell your business in Colorado, there are methods our business brokers can employ to expedite that sale. However, this will often include a lower asking price.
Most leases include an assignment or transfer clause. In our initial meeting, we will review that clause with you and help you understand what the process will look like. Your business broker will work with the landlord and the buyer to transfer the lease during the due diligence process.
This is a hard topic. Most buyers like to see proof of revenue and profit generated by the business, and if there is unrecorded cash it’s often hard to prove that income. However, in some unique situations and industries buyers will understand and accept the cash component. If you are in this position and considering selling, we strongly suggest accounting for all cash moving forward.
Our Colorado business brokers often work off of a success fee, in which we are paid a percentage of the sale price when and if the transaction closes. We also offer retainer and consulting packages for other specific business needs. After we get to know your business better, we will present a customized proposal on our commission rate and retainer, if applicable.
The analysis and ultimate valuation of your business is one of the most important components to successfully achieving a sale. Our estimates of value are not “certified business valuations,” but more of a market analysis. We analyze what the market will most likely bear in regards to the price of your business. We do provide this service for a fee, but it is included complimentary for our contracted seller clients.
If you own the property for your business, we can help construct a number of different options including real estate sale or leaseback agreement with the buyer. To support this service, all of our brokers are licensed Colorado real estate agents.
We structure most business sales as asset sales, cash free and debt free. This means that you will retain all cash and accounts receivable, along with liabilities, related to your business. Inventory depends on each scenario and industry standards. For example, most retail businesses do not include inventory in their sale price. The inventory will transfer at an additional cost to the buyer.
The lack of good business records is the single most common reason for a business deal to fall apart. We can’t emphasize enough the importance of maintaining good books and records. In general, we will ask for: Profit and Loss statements, Tax Returns, and Balance Sheets for the current year and the previous full three years. A buyer may also request additional documents during due diligence including cash register receipts, bank statements, and a copy of the lease. We will work with you at the beginning of this process to compile all records, so there are no surprises down the road.
We recommend focusing on three items: maintaining good books and records, documenting all processes, and understanding the value of your business. Additionally, continue to run and grow your business. All buyers want to see a healthy, thriving, and growing company. Do not lose focus on the day-to-day operations of your business because of your business sale aspirations. Additionally, you can participate in our Prep to Sell Program to help aid you in the preparation process.
We are firm believers that you cannot begin planning your exit strategy too early. Every business owner should have an idea of the way they plan to exit their business. Our staff will be happy to meet with you and discuss selling your business as part of that strategy no matter if you are two, five or ten years out. Also, keep in mind that most businesses take an average of eight to nine months to sell. So that being said, you should give yourself a minimum of one to two years to sell your business.
Buying or selling a business can be a complicated venture. While some businesses are sold without the help of accountants and attorneys, we strongly recommend that both the buyer and seller engage professionals to provide support in the buying and selling process.