Once you have decided to sell your company, there are several steps you need to take to prepare your business for sale.
First, you need to understand what it is worth within the context of your industry and the market for businesses like yours. Start by gathering all of the pertinent financial documents, including:
- Three Years of Audited Financial Reports
- Five Years of Auditor’s Letters and Replies
- Most Recent Unaudited Statements with Comparables to the Prior Year
- Company Credit Report
- Inventory Schedule
- Accounts Receivable
- Accounts Payable
- Schedule of all Indebtedness and Contingent Liabilities
- Schedule of Fixed Assets
- All Equipment Leases
- List of the Company’s Business Locations
- Copies of All: real estate leases, deeds, mortgages, title policies and surveys
- Copies of Patents and Trademark Information
Next, consider hiring a business broker, who will take this information and create a market-savvy opinion of value, market your company for sale, help you get the best price possible, and work with you through closing and the ownership transition.
Many sellers choose Transworld Business Advisors Houston as their business brokers to help them achieve the highest and best possible price for their business while taking the least amount of time from their company. They know that, as a business owner, your time is more valuable when invested in continuing to run your company. In order to achieve the best price, your company must continue to grow. After all, that will be what a buyer who wants to purchase it will be looking for.
Transworld Business Advisors Houston has created a multi-step approach to successfully selling businesses like yours:
- Step 1 - Comprehensive Business Analysis
As your business broker, the first thing in our how to sell your business strategy is to analyze your operation, finances, market potential, and trends. We take that information and generate a business profile that represents your company in the most attractive way possible.
- Step 2 - We Structure the Sale
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 represent an attractive investment potential.
- Step 3 - We Confidentially Network the 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 of Houston, you have industry professionals selling your company, while your confidentiality is always respected.
- Step 4 - We Confidentially Advertise Your Company 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 on advertising and marketing for buyers than anyone else in our industry.
- Step 5 - We Control the Information Flow
We organize all necessary documentation and release information only as needed. We use limited information when advertising to maintain confidentiality. Then, buyers are pre-qualified and required to execute a confidentiality agreement before receiving any sensitive information concerning the sale.
- Step 6 - We 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. We will then reduce that number to only the most qualified buyers. Once you meet the best of the buyers, we urge them to prepare and present all offers. Many times, a negotiation is doomed to fail because of lack of proper qualifying. As your business broker, we can also approach and continue to track potential buyers without weakening your position.
- Step 7 - 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 a curriculum that we have created specifically for our industry. Never negotiate without planning, expertise, or from a position of weakness.
- Step 8 - We Provide Exceptional Support to You Through the Due Diligence
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.
- Step 9 - 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 Houston 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!
- Step 10 - We Are There for The Transitional Phase and Beyond!
Because we are in the business community, you may want to consult us at any time after the sale. We will provide you with any assistance you may require after the closing. Transworld will always remain in your corner!
Transworld Business Advisors Houston specializes in business brokerage, franchise consulting and franchise development. We are backed by the Transworld network of professionals and resources that has specialized in business sales and purchases for more than 35 years. Our brokers are some of the most sophisticated and experienced in the industry. When you are ready to sell your business, no matter how small or large the business is, the team at Transworld Houston will help you find the right buyer. Call us today!