When you hire us to sell your business – we don’t charge upfront fees. Our process starts by helping you understand how outside buyers will value your company. Then we confidentially market your business for sale and help navigate the pros and cons of various offers. We get paid when you get paid, never before.
Experience
Learn what we do — and why we do it:
First, we use a variety of valuation methods to produce an opinion of value, at no cost to you.
Then, we dive into your business to identify which major hurdles are best resolved before bringing it to market.
Next, we have an honest conversation about a targeted price and timeline for the entire deal.
Here’s how the “fine print” is different when you hire us to sell your business:
Not happy? You can terminate us after 90 days. Most competitors require a 1-year exclusivity period to sell your business – even if they’re not performing! Spoiler alert: We perform.
Now, we get ready to confidentially market your business for sale.
We prequalify your business with lenders, anticipate buyers’ questions, develop marketing material, and understand your definition of a good deal – beyond only price.
You have final approval on all marketing material before it’s shared with potential buyers.
We aren’t slapping a for sale sign on your business and calling it a day. Confidentiality is a must.
We create a “teaser” to gives buyers a preview, without identifying information – like your business’ name or exact location. Then, we share the teaser with potential buyers:
Everyone must sign a confidentiality agreement before seeing specifics on your business.
We assume all the “logistical intensity” of qualifying buyers.
This way, you aren’t distracted with junk offers and tire kickers.
We meet with buyers, reply to their questions, gauge their financial strength, update you on their status, and help you navigate the pros and cons of various offers.
Once an LOI is signed, we help prospective buyers verify that your business is “as represented”.
Then, we work to remove any contingencies such as:
We also communicate with your attorney, so they can finalize a Purchase & Sales Agreement.
Don’t have an attorney? We’ll make an introduction.
Crack the champagne!
Well, not quite.
Navigating the transitionary period after you’ve sold your business isn’t always simple, and we don’t leave you hanging.
We help with best practices for transitioning ownership, suggest discussions to have with your CPA, and more.
How we help you attract and enable high quality buyers:
We aren’t slapping a for sale sign on your business and calling it a day. Our marketing material is hand curated and targeted directly at high intent buyers looking to buy a business like yours.
Because we don’t charge up-front fees, our paycheck depends on accurately valuing your business. We explain why your valuation “is what it is” and give advice on how you can improve it.
Too many great deals die at the financing level. We’ll guide you through making your business as financeable as possible for potential buyers – and we’ll connect those buyers with the right lenders for your specific deal structure.
Find answers to common questions about the business brokerage process, fees, and working with TWS Advisory.
Most buyers use what’s called the market approach to decide on a fair price for your business.
On its surface, the market approach is simple: Earnings × Multiple = Valuation
There are robust databases that we use to see what prices similar businesses have sold for – and their annual earnings. Using this data and a few other considerations, we prepare an opinion of value for you at no cost.
Curious about the “other consideration”?
We’ve got an article that explains the nitty gritty here.
For businesses sold under $5 million, buyers typically use an SBA (7a) loan. To make sure your buyer is solid, we go straight to the source – asking an SBA lender to prequalify them.
Here’s what the SBA lender might look into:
Credit score, ideally 700+
Relevant business experience listed on their resume
Adequate down payment, verified by bank statements
When it comes to businesses sold for over $5 million, your buyers are usually more experienced. They often have a track record of buying businesses, provide details on their funding sources, and we assess them on a case-by-case basis. Want to know how we play matchmaker between your business and an SBA lender?
Read this article on prequalifying your business with an SBA lender before going to market.
We aim for a 6 to 12 month sales process from engagement to when you’re paid. Of course, each deal comes with its own unique challenges to reach the closing table.
Curious about our process and how we handle these challenges? Check out this Article, where we detail our step-by-step approach to selling a business.
The price and tax structure of your deal must be negotiated together. We’ll guide you through various deal options and suggest discussions with your CPA to identify the best approach for your unique situation.
Our role is to collaborate with you and your CPA to ensure that the “price” and “terms” affecting your taxes are negotiated hand-in-hand.
Want to get a better feel for how the structure of your deal can impact what you’ll have left after taxes? Read this article to learn more.
Our fees range from 4% to 10% of your business’s sales price. If your business is sold for $1 million or less, our fee is 10%. This fee decreases for each subsequent million of your business’s sale price. Importantly, we’re paid once you’re paid – never before.
Our approach to fees is unique. Unlike many in the industry, we structure our contingency payments to align with your interests. If your deal involves seller financing, we don’t take all our commission upfront. We get paid when you get paid on all of those contingency payments. This ensures that we stay invested in your deal’s success, aligning our goals with yours.
Our fees are competitive with industry norms, but the fine print in our engagement agreements sets us apart. Before you sign anything, be sure to read this Article to understand how we’re rewriting the rule book on business sales.
Getting as much cash upfront as possible is important. But most businesses use creative financing structures to get deals done. Remember, the worst deal isn’t “less cash upfront” – it’s no deal at all.
Offering a modest amount of seller financing can help bridge the gap between your buyer’s valuation expectations, get lenders onboard with your deal, and even reduce your tax bill. Plus, our commission structure makes sure that if you don’t get fully paid at closing, neither do we. We’re not going to ask you to take a bet on your buyer that we’re not willing to take ourselves.
Curious about how these creative financing structures can work to your advantage?
Check out this Article to learn more.
The short answer is yes. When selling your business, having a deal team with complementary skill sets is crucial. This team typically includes an M&A Advisor (that’s us) to facilitate the sale process, a CPA to help with tax stuff, and lawyers to draft the purchase agreement.
We’re not lawyers or CPAs, so we don’t provide legal or tax advice. If you need a reputable lawyer or CPA, we can connect you with one from our network of trusted partners.
Want to know more about the roles of your deal team? Read this article.
Our system is set up so that any potential buyers sign confidentiality agreements, your information is stored in secure online data rooms, and we work with you to schedule meetings outside normal business hours. This way, for everyone else (customers/employees), it’s business as usual during the sales process.
When confidentiality is breached, there’s a risk of competitors poaching customers, employees getting uneasy, and potential buyers disrupting daily operations.
Want to learn more about how we help you avoid these headaches? Read more here.
Lease agreements are one of the most common reasons that otherwise good businesses fail to sell. Often, your landlord may be reluctant to let a new owner take over your lease. We help you navigate the process of getting your landlord’s support to facilitate the sale of your business.
For more detailed insights on how we assist in this process, check out this article.
Our goal is to bring tough conversations to the surface early in the process. Buyers will typically issue a letter of intent (LOI) that details the price and terms they’re proposing to purchase your business. It’s tempting to focus solely on the price, but the terms – or key details missing from your buyers’ purchase offer – are equally important. There’s more to a good deal than just the price tag – we explain that in detail, Here.
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