We can help selling a business to an internal party.
Already have the perfect buyer for your business? If you need help selling a business to an employee, a family member, or a friend, Transworld Business Advisors can still assist you in the transaction. Having a business advisor on your team can be an invaluable way to put our negotiation expertise to work for you and lessen tension that may arise between parties.
We normally would represent you and your interest in a transaction. You may ask us to be that impartial advisor who will help you execute a deal that considers all parties so that you can reach consensus on the best collective outcome. Whatever your objectives are, we know how transactions work and we can help you navigate the process for a successful close.
Scope of our services may include all or some of the following:
- Execute Confidentiality Agreement – confidentiality in any transaction is very important and similarly to selling a business to an external party you should keep an internal sale on confidential basis until it is consummated
- Determine Transaction Price – we can start with assessing how much your business is worth – we normally would prepare a report as described under Price Opinion Service so that you have basis behind the asking price; especially for a family member transition, you may choose to use our report with them for transparency purposes
- Structure the Deal and Aid Negotiations, including Financing Strategies – we can help you put a deal structure in place allowing you to meet your financial and non-financial objectives and yet have a structure that would make sense to the other party; if applicable, we would help with financing strategies on the deal
- Assist with Contracts and Lease Transfer to New Ownership – depending on a structure of a deal, whether an asset sale or a share sale, or type of a contract, there maybe a need to transfer or assign contracts and execute new agreements – we would work with you and your lawyers on their execution
- Deal with Real Estate Considerations – you may choose to hold on to your business real estate and structure a transaction that would generate a regular rental income for you, yet making the transaction more affordable to the buyer; or you may decide on a sale to the buyer or an external party; either way we can guide you through this process
- Assist with Due Diligence and Close the Transaction – whether a sale is to an internal or an external party the buyer will complete certain level of due diligence to satisfy themselves that they understand what they are buying and to verify information presented to them; many deals fall apart during due diligence; our experience will help navigate through this process and help resolve questions as they arise and aid a successful close
- Transition Planning and Roll Out – presumably it would be easier to transition business to an internal party, however there will be tasks that you as owner perform and will need to transition them effectively; after all the business is your legacy and you want to set new owners for success