Seller FAQ

To determine the worth of a business, one must consider a few factors. For one, a business is only as valuable as its ability to provide an income in the future for a buyer. Other factors like what equipment does the business own; what is its inventory; profitability trends matter as well? Market comparables will also be important in understanding what your business may ultimately sell for.

Next, a good set of books not only helps determine where the value lies but makes a business more valuable, in general. A valuable business is one that can accurately inform a potential buyer how profitable it is and has been at any given time and how it will perform into the future.

Additionally, revenue is a good lead measure of a business’s worth but not the most black and white. If a business has gross revenues of $500,000 per year, however if it expenses are $495,000 to keep a business afloat, then $5,000 net profit it is not a highly valuable business. This is why any broker would seek to adjust your profit and loss statement in order to understand true earnings and other factors to determine valuation.

Once each of these elements is estimated, then intangible assets may either have an upward or downward pressure on the market value. For instance: location, economic conditions, competition, goodwill, lease terms, and customer loyalty and diversification can add or subtract from value.

In essence, a business’s worth is a combination of its earnings and its good standing in the community. Although there is no simple answer to valuing a business, Aniss Cherkaoui can help you understand your business’s potential market value.

Organizing Financial Documents: Well organized books, balance sheet, and a clear outline of all assets will not only streamline the valuation process but will also make your business more appealing to potential buyers. Therefore, before listing, make sure all of your financial documents are in order.

Understanding Market Value: In order to list your business, you must first understand business valuation. What sets your business apart? What makes it profitable? What have other businesses like yours sold for with similar revenues and profits? Not only are these details important for determining what your business is worth, but essential to the success of your sale process.

Exit Strategy: It is important to plan an exit strategy even before you believe you might want to sell. The unexpected can occur and having a solid plan can ease the process of listing and selling. For instance, a business owner may become ill, lose interest, or maybe the hopes of passing the business along are unlikely as your children have passions in different careers. Therefore, a well-planned exit strategy can make the process of selling down the road much less stressful.

Boosting Revenue and Sales: The best time to sell your business is when your sales are at their best. You would be hard pressed to find a buyer willing to take a shaky business off your hands. If sales are declining, you should avoid listing your business. If you are hoping to sell soon but have had trouble boosting sales, consider speaking with your broker about marketing methods to help increase attraction and customer retention.

Business Broker: Transworld Business Advisors are not only equipped in both the buying and selling process but have specific expertise in most industries. Therefore, they are not only interested in helping you sell your business quickly and at the best price, but they have the tools to do so. Not only will they help ease the process with professionalism and experience, but Transworld also has a network of interested buyers ready to make an offer on your business.

If you would like to sell your business quickly and intelligently, there are a few important things to note. A wise seller 1) will understand their business’s competitive market position, 2) can choose a competitive asking price, and 3) is able to identify a competitive offer. An efficient sale is one that has been carefully planned which means preparing long before the business has even gone up for sale.

Determine Business Value

The first and most important step is determining your business’s value. This is mainly because not only will it help you choose a competitive listing price, but it will force you to do the research that is helpful in a number of different ways during the selling process. For one, understanding your position in the market, and how that affects your profits.

Organized Business Financials

In the process of determining business value, you will find out how organized your financials are. It is crucial to have your financials organized for yourself, but also potential buyers. Being able to clearly identify your profits, equipment depreciation, property values, etc. will allow you to stand apart from other, not so organized, competitors.

Prepare Exit Strategy

Whether it is retirement or the desire to switch industries, having a prepared exit strategy is important. A forced, last-minute sale can mean you list your business for less than what it is worth or sell to the wrong buyer. Preparation not only avoids this but also makes the process run more smoothly when the time does come – sudden or not.

Boost Sales

Before a sale, try to boost revenue as much as possible for six months to a year prior. Potential buyers want to see that your company is growing and is likely to continue to grow even without your ownership. However, what does that look like? Depending on the type of business, this could be a new coat of paint on the walls, new signage or even diversifying the inventory. The key is to attract new customers and instill greater loyalty.

Business Broker

A business broker is skilled in both the process of selling and buying, which makes their guidance invaluable when you find yourself on either side of that transaction. If you want to sell your business quickly and efficiently, take advantage of the vetted network of potential buyers offered through Transworld.

The idea of selling your business online may sound like a hoax from the youngest millennial in your extended family. However, using online resources can actually help you sell your business more quickly and effectively than using only print media and advertisements.

Online platforms may, on the surface, seem difficult to trust. However, Transworld Business Advisors has a trusted online network of vetted buyers and sellers, making the selling process run smoothly. Filtered by type of business, size, location, employee count and listing price, businesses can be easily located. This guarantees that no buyers will attempt to make an offer far below your carefully crafted listing price. In addition, because these buyers are already vetted, this saves you time and money.

A business broker is the most secure method of ensuring all offers are valid and worth sifting through. Otherwise, you run the risk of wasting valuable time needed to continue running daily operations in your business. The key to selling your business quickly online is sharing as much pertinent information as you can without revealing the identity of your business. Studies have shown that being honest leads to more offers than dishonesty, as it leads to less skepticism from potential buyers.

Once the offers have come in, you will need to sift through them and make a decision. With the help of your business advisor, you can begin to ask the important questions, including:

How does the offer compare to the listing price?

How does the buyer plan to finance the purchase of the business?

How much can the buyer put as a down payment?

Selling your business online is a legitimate method for selling your business as it broadens the audience of potential buyers. When you do this working alongside Aniss Cherkaoui, the buyers have been previously vetted to bring you peace of mind.

A general partnership means that there is more than one owner of a business. Essentially, partners share in the profits and the debts of the daily workings of the business. Because of that, when one partner wants to sell, they cannot sell the entire business. They can only sell their assets – i.e., their share of the partnership. If you are hoping to sell your share of a partnership, consider these 6 important steps.

Step 1: Review the partnership agreement which outlines how partners would address certain business situations, such as selling. The key to a seamless selling process is to not deviate from what was already agreed upon.

Step 2: Meet with your partner(s) in order to take a vote on how to dissolve the partnership and sell your assets. In moments of confusion or doubt, always consult state law on dissolving a business or partnership.

Step 3: Because assets can be both tangible and intangible, the next step is to determine which ones are to be sold. In a case where only a part of the partnership will be dissolved and the business intends to remain intact, the remaining partner may not wish to sell their mailing list or machinery.

Step 4: Pay off all debts. If that is not possible, reduce the value of the selling partner’s shares to reflect the percentage of debt the selling partner should assume.

Step 5: Consult a business advisor and perform a business valuation. Before you can sell any kind of business, you need to determine what it is worth.

Step 6: Find the right buyer! Once you have a business advisor and a valuation, you can sift through potential buyers to find the right one. Transworld has a network of pre-vetted buyers which makes the process that much more seamless.

If you are hoping to sell your share of a business, contact Aniss Cherkaoui to ensure you have everything in order.

Finding a buyer can be easy, but finding the RIGHT buyer can be a little more difficult. There are three simple steps you can follow to ensure you find a buyer that is perfect for your business. No matter what, however, the best way to sell your business is to follow the advice and guidance of an expert business broker.

Transworld Business Advisors has a full network of vetted buyers, who can be filtered by what your specific needs are. But first, get a formal valuation. A good potential buyer is going to ask for one. They want to know what your business is worth. A cautious buyer is not going to simply take your word for it, they want to know your asking price is not too low or too high – because either extreme is a red flag.

Secondly, it is important to spread the word. Although you do not want to alert employees or competitive businesses, you want to let your close acquaintances and business contacts know. These are the individuals who are familiar with your industry and can steer you in the right direction. Not to mention, your business partner might be willing to buy you out or a business contact may have someone in mind who is looking to invest. The possibilities are endless.

Finally, it is time to advertise. This is where the Transworld network comes in handy. By listing your business in this network, your listing is going out to our list of vetted investors. You will be listed by industry and cost – revealing just enough information to peak the interest of a worthy potential buyer.

During the entire process, take the guidance of the professionals who undergo these business deals every day. Hire Aniss Cherkaoui to ensure a smooth selling process.

An Executive Summary, simply put, is a document that summarizes a longer report or proposal in a more concise manner. This way, readers can easily become familiar with the overall content of the text without reading it in its entirety. A proper Executive Summary, it must include:

Introduction

Restate the purpose of the report

Highlight the major points of the report

Describe the results, conclusions or recommendations

It should include enough detail and information that the reader can understand what the full report states. These reports are often one to two pages long and are written in a formal tone. They are incredibly beneficial because a reader can understand the purpose of the business plan, project proposal, product launch presentation or sales pitch in a fraction of the time.

A reader should feel empowered after reading the Executive Report because they understand what is next in your business. Whether you are seeking support for a position or making a case for your business, the executive summary should explain how the report contents will impact the reader.

Executive Summaries are commonly used in numerous cases, including:

Business plans

Legal briefs

Product launch plans

College campus surveys

Market research reports

Environmental studies

Project proposals

Hospital planning and evaluation

The value of a business is determined by several factors, therefore, there is no one exact science for increasing it. Of course, that also means that each individual business can find methods of increasing its worth that may look different from the competition.

That being said, to increase the value of your business, consider what you like best about your favorite brands. What comes to mind? Great customer service? Top-quality products? Convenience? This is true across the board. The best way to increase the value of your business is to put the customer first – regardless of your industry. When making decisions on services/products, store or online experiences, and the associates you hire to manage the day-to-day, consider the customer above all else.

A happy customer is one who is treated well, can easily find what they need, and keeps coming back for more because the product or service is that good. Yes, it is that simple – and this will increase the value of your business. Never compromise on quality to save on overhead costs. You must invest in what matters, to profit greater in the long run. Quality products and services, a pristine storefront or office, and happy staff that are like family will all make your business more valuable.

When calculating the value of a business, yes, profits and cash flow are major components. However, what many may not realize is that “goodwill” is just as important as bottom lines. A buyer is going to be interested in investing in a business that will have a quick return – one that already has a strong customer base and loyalty.

If you need guidance from an experienced business advisor as to how you can increase the value of your business, do not hesitate to contact Aniss Cherkaoui.

A business valuation is a tool usually used to get certified reports that are valid for IRS or litigation purposes. A simplier Broker Opinion of Value (BOV) can be performed to determine the listing price for a business ready for a sale. However, it can also be done to simply determine the business’s value as you are looking to improve and/or grow your business. That said, did you perform a BOV (or business valuation) a few months (or even years) ago and wonder if it is still valid? That is a great question. The answer is: it depends.

is only as good as its relevance. To determine this, consider the following questions.

Have your financials remained essentially the same or have profits increased or decreased?

Did you introduce new products or market to a new customer base?

Have new services been added to your offerings?

Did you change business locations or open a second location?

Has your business acquired (or sold) assets?

Has the size of your staff changed significantly?

Has your service area changed in any significant way (population increase, etc.)?

Once you answer these questions, you can determine if it is time for a new business valuation. Essentially, if you find your business has changed substantially since the last business valuation, it is in your best interest to have a new business valuation done. It is best to make informed decisions and you want that information to be accurate and up to date.

If you need an answer that offers a tangible timeline, many experts say six months. During this period, you have been able to see two quarters of profits and depreciation, which could serve as significant components for a re-calculation of your business’s value. Of course, if in doubt, call Aniss Cherkaoui, and he can pick up from your last BOV or business valuation. The truth is that it does not hurt to see where your business currently stands, especially if you are considering selling your business.

Need an experienced business advisor to perform your BOV? Contact Aniss Cherkaoui today. With locations around the country and expertise in countless industries, Aniss Cherkaoui is ready to help.

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.

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.

Transworld Business Advisors 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.

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.

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.

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.