There arguably never has been a better time to get involved in franchising, and one…
Leading Business Advisor Outlines Managing Complex Process
WEST PALM BEACH, FL – “Simply stated, it’s a jungle out there,” said Bill Luce, President of Transworld Business Advisors, when speaking about the challenges entrepreneurs face when buying or selling a business. Recognizing the complexity of unique challenges of the business world, experts at Transworld, a member of United Franchise Group (UFG), are considered professional “tour guides” that help businessmen and women navigate the jungle and smooth the landscape.
“Many entrepreneurs build a successful business through vision, excellent management skills and sheer hard work. But most don’t have a thorough understanding of the complexities and factors presented in the deal structuring and business selling process,” noted Luce. “There are a variety of reasons why problems arise, not the least of which is not maintaining confidentiality and a failure to continue to run the business at peak operating capacity.”
- Selling a Business
According to Luce, additional pitfalls commonly seen by Transworld Business Advisors in the selling process include: 1) poor negotiating techniques; 2) little knowledge of how to qualify a buyer; 3) failure to move the deal along; 4) inaccurate valuation of the business; 5) lack of proper deal structuring know-how; 6) being unprepared or unorganized; 7) lack of marketing to attract potential buyers; 8) receiving advice and assistance from the wrong person; 9) failure to properly package your business; and 10) failure to control the deal.
- Buying a Business
“This is, without doubt, one of the biggest life-changing decisions a person will ever make,” stated Ray Titus, Chief Executive Officer of UFG. “The buying process can be long and laborious, or it can be relatively simple if one does the proper research, gets the right advice, and covers all the bases.”
The process, as outlined by Transworld, makes purchasing a business more efficient and better serves a buyer’s time frame: 1) Don’t be impulsive and identify the industry; 2) look for a business that matches expectations; 3) do extensive research and see if the assumptions about the business are correct; 4) estimate the value of the business by using a multiplier of yearly profit and comparing year-over-year sales; 5) negotiate and don’t lead with your highest offer, and make sure there is an “out” clause; 6) due diligence as the seller is obligated to open up the business for investigation and an accountant or lawyer’s advice is needed; 7) finalize contracts and other documents; 8) decide the best method of financing; and 9) work with the seller to gather all relevant information about your purchase.
A leading business franchise brokerage and development company, Transworld added 69 locations in 2017, including the addition of new businesses in four states (Arkansas, Idaho, Mississippi, and Washington, D.C.) and two countries (France and Jordan). In 2018, the company expects to open more than 80 locations.
Transworld Business Advisors has available franchise opportunities for entrepreneurs interested in owning their own business. Backed by UFG, franchisees receive support needed to run a successful franchise through UFG’s comprehensive training program.
To learn more, and gain insight into buying or selling a business, visit www.tworld.com.
About Transworld Business Advisors
Transworld Business Advisors is part of United Franchise Group. Based in Fort Lauderdale, Florida with almost 40 years of brokerage experience, Transworld represents acquisition-minded corporations and individuals alike interested in owning their own company, or in franchising. Led by CEO Andy Cagnetta, Transworld has grown to having over 235 territories in 15 countries worldwide. As business sale specialists, Transworld offers the professional services that successfully bring buyers and sellers together.
About United Franchise Group
“The Global Leader for Entrepreneurs.” United Franchise Group is a group of affiliated companies and brands. Led by CEO Ray Titus, United Franchise Group is home to a variety of internationally recognized brands including Signarama, Fully Promoted, Experimac, Jon Smith Subs, Venture X, SuperGreen Solutions, Transworld Business Advisors and The Great Greek Mediterranean Grill. With over three decades in the franchising industry and more than 1600 franchisees throughout the world, United Franchise Group offers unprecedented leadership and solid business opportunities for entrepreneurs.