Thinking about buying a business?
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Whether you're a first-time buyer or an experienced entrepreneur, we're here to help you navigate the process with confidence. This guide answers common questions, outlines what to expect, and highlights how our team can support you every step of the way.
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Steps:
- Define your goals and budget
- Initial consultation with a Cincinnati/Northern Kentucky Transworld broker
- Review listings and sign NDAs
- Review the CIM/Executive Summary
- Initial due diligence with Transworld broker
- Transworld broker schedules meeting/call with seller
- Prepare conditional offer and good faith deposit with broker
- Conditional offer acceptance by the seller
- Deeper due diligence, finalize financing, conditions to close and final approvals
- Fund and close the transaction
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Top-Shelf Services We Provide
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- 45 years of small business transaction experience
- Locally owned and operated
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Access to vetted, cash-flowing businesses
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Confidential process management
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Guidance on valuations and deal structure
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Experienced brokers who understand your goals
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- Why should I consider buying a small business?
- Owning a small business gives you the freedom to be your own boss, make your own decisions, and build something meaningful on your own terms. It offers the opportunity to create financial independence while doing work that aligns with your passions and values. With the right business and support, you can enjoy more control over your time, your future, and the legacy you leave behind. Transworld Business Advisors of Greater Cincinnati and Northern Kentucky is here to help you realize this dream!
- Why should I work with Transworld Business Advisors?
- We are the world’s largest business broker firm…about 10x larger than the next-sized organization, with over 800 brokers and 250 offices across 28 countries. We are the market share leader in Greater Cincinnati and Northern Kentucky, with an average of 25 closed transactions annually and typically over 60 local businesses for sale at any give time. Our team of skilled, committed, and friendly brokers works hard for our clients to deliver value and results. See our Vision and Mission Statements.
- How do I buy a business in Ohio or Northern Kentucky?
- We are there with you every step of the way. We walk you through the full process from defining your goals, reviewing financing options, browsing our listings, making an offer, conducting due diligence, and closing the deal. Further details are available on this website, or please feel free to contact us to discuss further.
- What types of businesses can I buy through Transworld Business Advisors of Greater Cincinnati and Northern Kentucky?
- We are agnostic to industry, size, or situation. Most businesses are cash-flowing, while others are asset sales, and some include real estate. We happily offer a variety of business opportunities throughout the Tri-State area. We also offer over 450 franchise brands, a list of which is available on our website. Whatever your passion or budget is, we can help find you a great fit!
- Why should I consider buying a franchise?
- Transworld Business Advisors of Cincinnati and Northern Kentucky offers franchise resales and new franchise opportunities with over 450 brands. Franchising can help the new entrepreneur get off to a faster start with a proven brand and business model. Please read about "What Are The Benefits of Buying A Franchise?" in our blog article or contact us to learn more!
- How much money do I need to buy a business?
- It helps to work with a banker, financial advisor, and accountant to determine what you will be comfortable investing in. There are multiple financing options available to most buyers. Most of our deals include some element of an SBA (small business administration) loan and seller financing. See our blog post, "What is Seller Financing for a Business? (And How it Can Help You Close The Deal)" to learn more.
- Do I need industry experience to buy a business?
- Not always. Industry experience can help, but buyers from many different backgrounds can excel by using their transferable skills gained over the years in similar, or in some cases very different, industries or sectors. Additionally, many businesses are presented ‘turnkey’, meaning they have operational systems and employees in place that enable a smoother transition and less complex learning curve. As you learn more about the business and ask your initial due diligence questions, you’ll be more apt to see yourself succeeding within the new opportunity regardless of background.
- Will the owner stay on to train me?
- Yes, most likely. Virtually all business owners desire to stay with the business for a negotiated amount of time to help you get off to a great start. These terms are negotiated with the seller, along with all other aspects of the deal. Most all business owners are committed to your success and want to see you succeed for many years to come! This transition period typically includes an employee announcement and introductions, supplier introductions, important client introductions, operational hands-on training, and more.
- What is due diligence when buying a business?
- The initial due diligence is the process of collecting data and analyzing the business’s fundamentals to ensure you know what you are potentially buying. With your Transworld broker, you’ll have a chance to review the business’s financials, operational structure, history, and legal documents to verify that the business is a good fit for you. Once you make an offer and get into contract, deeper due diligence is performed, which gets further into the details of the business to ensure that the business’s financials and other important aspects are as represented.
- How long does it take to buy a business?
- Once a business of interest is identified, cash buyers and cash buyers with seller financings can close on the transaction between 45-90 days. If bank financing is involved, it can take between 90-180 days depending on deal complexity. When working with a Transworld broker, we work hard to control the communication and flow so there is no wasted time for either party.
- What should I look for when evaluating a business for sale?
- Key quantitative elements to analyze are revenue trends over the last 2-3 years, current and previous cash flow, recurring revenue, client base amount and tenure, growth potential, employee skills and tenure, supplier relations and tenure, tangible and intangible asset conditions, current owner role, and growth potential. The biggest qualitative elements to ask yourself are: “Is this business a good fit for me?”, “Can I see myself owning and running this business for the next several years?”, and “Do my current skill sets apply to the current and future needs of this business”?
- Why do I need to sign an NDA (Non-Disclosure Agreement) for each business I inquire about?
- Our business owners require 100% confidentiality when selling their businesses. They do not want their employees, suppliers, clients, or competition to learn they are for sale. If this were to be divulged, this information could hurt their current business. For these reasons, we require all buyer inquires to sign an NDA for each specific business of interest. Further, anyone else you may work with on the analysis of the business’s fundamentals will be required to sign the NDA as well.
- Will I be able to interview and get to know the business’s employees before I buy the business?
- No. Due to confidentiality, you will be unable to have any contact, direct or indirect, with the employees.
- What is working capital, and why is it important?
- What is the difference between an IOI (Indication of Interest), and LOI (Letter of Intent), and an APA (Asset Purchase Agreement)?
- Great question! While we typically don’t see IOI’s used much in small business transactions, larger deals typically involve LOI’s, and all deals involve an APA or Stock Purchase Agreement. See our blog post, "IOI vs LOI – What’s the Difference, and Why Should You Care?" to learn about these important terms and definitions.
- Do you sell commercial real estate?
- Yes, we often offer commercial real estate opportunities, sometimes with a business included, and sometimes without. Please Search Our Business Listings weekly to check for updates on our exciting opportunities!
- Can Transworld help me buy a business that isn’t listed with Transworld?
- YES! We can help advise and broker a great deal for you on any business listing, whether it’s listed with Transworld or not. These services are generally offered at no cost to you (the buyer). Contact us to learn more about how we can help!
- Can Transworld help me value a business that I’m analyzing?
- YES! We can execute an official business valuation of any size. The process takes about 2-4 weeks depending on business size and complexity and cost varies. Contact us to learn more about how we can help!
- Will I need an attorney?
- Yes, you will eventually need an attorney, but not right away. Once you work with Transworld and have identified a business of interest, we will help match you with a great small business transaction attorney that will help you get the deal done, at reasonable rates.
- What is the difference between an asset sale and a stock sale?
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Ready to take the next step?
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