BUSINESS SALES

Have you thought about selling your business? At Transaction Business Investments, selling companies is what we do. We have a huge database of both past and active buyers constantly searching for business opportunities. Our process is simple: we meet with business sellers, learn about their business, arrive at a price, develop a marketing strategy, and then we start advertising each business for sale confidentially. All of our transactions are done professionally and confidentially. Confidentiality is key in our industry. Our goal is to sell your business without the public, your employees, or your customers knowing.

The advisors at Transaction Business Investments have backgrounds in selling businesses from most major industries including: manufacturing, restaurants, distribution, retail, service, transportation, chemical, technology/software, and industrial. The values of these businesses typically range in value from $50,000 to $1,000,000. If you think you may have a business you want to sell, contact us and we can provide you with details and the information you would need in order to get started.

  • Evaluating a business for sale. Transaction Business Investments starts each process by meeting with potential business sellers and evaluate each business for sale. Even though many businesses such as restaurants have similarities, every business is different. When we meet with owners we go over the history of the business, how the business is run, and attributes the new owner will need to run the business. We understand what buyers want to see in a business, and we can work with your team to get your business in position to be sold for the best price and in the shortest time frame

  • Generate Value and Deal Structure. The right deal is different for everybody and every business. In conjunction with delivering our professional opinion of value, we can present different deal structures for you and your financial advisors to consider. Visit our section for more information about valuations and business pricing.

  • Develop Marketing Strategies. Our team will create compelling Confidential Business Profiles, Confidential Business Reviews and additional collateral designed to stimulate the interest of buyers. After Transaction Business Investments evaluates each business, we discuss with sellers the best way to go about selling and marketing each business. One of the reasons why business owners hire an advisor that specializes in business sales is because they are skilled at marketing businesses for sale to a wide audience yet they do it while keeping the identity of the business confidential from the public. This skill is what differentiates a business advisor from an ordinary broker. Because we have been assisting in the sell of businesses for so many years, and have helped to sell hundreds of businesses, we recognize that you have to be creative in finding the right buyer to purchase the right business and have a successful transaction. Less than 10% of businesses which go to market actually sell. However, we have an 80% success rate of selling the businesses which we take to market.

  • Working with Buyers. Once TBI locates a potential buyer, we qualify the buyer to see if they are a potential match for the business. If the buyer appears to be a match we introduce them to the seller. If the buyer is interested, we help them put together an offer. Our process is designed to solicit the best offers, from the best buyers. Working with your professional advisors, we’ll help you evaluate the pros and cons of each offer.

  • Closing of the sale. When advisors at Transaction Business Investments meet with potential business sellers, one of the first things we go over is what information potential business buyers want from the seller. We commonly encounter many sellers that figure that buyers will simply meet them, see the business, and then instantly write them a check to purchase the business. The reality is that buyers, even ones that have been established in business for many years, like to see as much detailed information possible. They like to see that all this information is organized, updated, and readily available because the more information that is not available, the more buyers will be concerned that the information is not favorable.

  • Recent Financial Documents. Different businesses have different methods of displaying financials. Some offer tax records and extended profit and loss statements right up front and some simply have a summary sheet that they put together to show business earnings to potential buyers. Regardless of the process, Buyers want to see financial numbers that are updated, and if there are previous financial years available they like to see those too. The financial numbers give buyers a pulse on how the business is currently doing and helps them come up with a value for the business. Many sellers assume detailed financial numbers on paper are not urgent when selling, but it is one of the first things buyers ask for.

  • List of Inventory and Assets. It is always important to get a list of inventory and assets included in the business purchase prior to showing the business to buyers. We cannot stress enough how often times sellers state to potential buyers that everything they see is included and further down the line it comes out that some equipment is leased such as a POS system or a truck that was seen at the business is not included. To avoid confusion and again help buyers place their own values on businesses, it is important to have this information organized and up to date.

  • Current Lease Agreement or Business Property. Seasoned business brokers can tell you leases can be one of the biggest hurdles business owners have to overcome when selling businesses. Sometimes a lease doesn’t present any problems, but other times Buyers feel they need changes to current leases. A more common occurrence is potential buyers trying to qualify with landlords to obtain a new or assigned lease for a facility. Being able to review the lease can give Buyers, Sellers, and Business Brokers a heads-up on any potential issues. So we always advise business sellers to locate their lease and scan a copy of it for potential buyers.

Business Acquisitions

The fact is most startups fail. It takes a tremendous amount of work to get a business up and running, and you would have to have enough capital to support it. Ultimately, it can be a waste of time and resources. Instead of rolling the dice, Transaction Business Investments recommends buying a stable business that has a history of growth. In reality, most banks are willing to finance the purchase of an existing business a lot faster than a startup with no track record.

The business acquisition process is a complex transaction wherein one company (the acquirer) purchases another company (the target). Here's a general step-by-step overview of how it works:

  • Set Strategic Goals: The acquiring company outlines its objectives for the acquisition. This could be increasing market share, acquiring new technology, eliminating a competitor, or diversifying its offerings.

  • Find Potential Targets: The acquirer identifies companies that align with its strategic goals. Investment banks or business brokers often assist in this process.

  • Valuation and Initial Offer: The acquirer analyzes the target company's financials and assets to determine a fair price. They then make a preliminary offer, often in the form of a Letter of Intent (LOI).

  • Due Diligence: The acquirer thoroughly investigates the target company's financials, operations, legal standing, and other relevant factors to confirm the initial valuation and identify any potential risks.

  • Negotiation: The acquirer and the target company negotiate the final terms of the deal, including the purchase price, payment method (cash, stock, or a combination), and any liabilities.

  • Financing (If Needed): The acquirer secures necessary funding for the acquisition through loans, issuing bonds, or using existing cash reserves.

  • Definitive Agreement: Once negotiations are finalized, a legally binding contract called a Definitive Agreement is drafted, outlining all terms and conditions of the acquisition.

  • Regulatory Approvals (If Needed): Depending on the industry and size of the companies, regulatory approvals from agencies like the Federal Trade Commission (FTC) or international bodies might be required.

  • Closing: The acquisition is finalized. Ownership is transferred, payments are made, and the target company is integrated into the acquirer's business.

  • Integration: The acquirer integrates the target company's operations, employees, and systems into its own. This can be a complex process and is crucial for a successful acquisition.

Important Considerations:

  • Professional Advisors: Acquisitions usually involve investment bankers, lawyers, accountants, and consultants to advise and facilitate the process.

  • Types of Acquisitions: There are different types of acquisitions, such as:

    • Merger: Two companies combine to form a new entity.

    • Asset Purchase: The acquirer buys specific assets of the target company.

    • Stock Purchase: The acquirer buys the target company's stock, gaining ownership.