Transworld Business Brokers
This article on Business Brokerage is part of the Business Brokerage Resource Library Series.
Trying to sell or buy a business is a complicated process. There is a myriad of reasons people sell their business, and in 2017-2018 alone, the number of businesses that were sold increased their cash flow by 4.3%. If you want to purchase a new business to start a new venture, it can be a long and confusing process. However, you can consider a business broker. They are not necessary, but the right ones can be immeasurably helpful. Transworld Business Advisors have been in the industry for a long time. Here’s everything you need to know before investing in the company.
Transworld Business Brokers: A Brief History
Transworld Business Advisors was set up in 1979 by Don and his wife in South Florida. The company claims to be the largest business brokerage in the United States. After some time, CEO Andrew Cagnetta and United Franchise Group CEO Ray Titus teamed up and started to offer Transworld Business Advisors as a franchise.
The United Franchise Group is lead by Ray and is home to numerous award-winning franchises such as Network Lead Exchange, Jon Smith Subs, The Great Greek, VentureX, SuperGreen Solutions, Experimac, Fully Promoted, Transworld Business Advisors, and Signarama. With Andy’s vast experience in the business brokerage industry and Ray’s franchise success, Transworld has expanded to more than 16 countries. They have been in business for more than 40 years and specializes in the sale of commercial real estate and businesses. They are currently headquartered in Florida. They utilize their state-of-the-art training facility to assist thousands of entrepreneurs in acquiring their business.
Transworld Business Brokers Eight Steps To Entrepreneurship
On their website, Transworld has listed their eight-step process that they utilize to help entrepreneurs acquire the most suitable and profitable businesses.
Take Charge
After you have contacted Transworld to assist you in purchasing a business, they will help start the process.
Evaluation
Buyers are encouraged to meet their Transworld representative in person. If that is not possible, Transworld can even communicate through email or phone. After that, the client’s information is gathered, such as their financial capabilities, personal life goals and skills, and experience to determine the most suitable type of business. Then Transworld utilizes its vast market database to start the search.
Education
Transworld also takes every measure possible to ensure that their clients are properly educated before they make decisions. They assist their clients in understanding the entire process, basic valuation concepts, reading business listing information sheets, and to review available opportunities, among others.
Search
Transworld assists their clients in thoroughly searching for the most suitable clients, signing confidentiality disclosures, providing comprehensive data about the business, and help list showings with the seller. If the search process takes longer than expected, clients may have to repeat the ‘education’ step.
Make An Offer
If a client is interested in a business, Transworld helps form a deal structure. To demonstrate the seriousness of the buyer, purchase and sale agreement, along with a deposit of good faith held in escrow, will be presented to the seller.
Due Diligence
Transworld staff co-ordinates with the buyers accounting and legal representatives to satisfy all contingencies. If a client is seeking financing, the lender must approve the application assuring that the client is capable of repaying the loan.
Closing
To ensure that the transfer is as smooth as possible, Transworld staff initiates the final preparations for inventory counts, merchant service accounts, financing, utility transfers, and lease assignments and whatever necessary. Generally, an attorney is required to sign several documents.
Post-Closing
If the client has any questions or queries, Transworld advisors provide assistance even after the deal is closed. Technical education, knowledge transfer, and meetings with clients and employees are typically carried out as well.
Transworld Business Brokers 9 Steps To Buying A Franchise
What makes Transworld stand out from the rest is that they also deal with the purchase of franchises. They follow a meticulously planned nine steps process to aid buyers in purchasing a franchise.
Information
In this step, Transworld helps build a franchise buying profile to gather information about the client and understand why they want to purchase a franchise.
Research
After that, the client’s franchise profile is compared to Transworld’s large inventory. Transworld makes every effort to find the most suitable franchise in the desired location of the buyer.
Presentation
The most suitable franchises are narrowed down and presented to the buyer. After that, the highlights of the shortlisted franchises are explained so that the buyer can make an informed decision.
Communication
Transworld staff organizes a phone call with the companies that the buyer is interested in.
Evaluation
Once the client has spoken with the franchise companies, A franchise disclosure document (FDD) will be sent so that the client can review and make an informed decision.
Validation
After the FDD has been thoroughly read, communication is initiated between the client and franchisees to validate the information provided through the phone call and the FDD. Transworld staff assists in co-ordinating the efforts of the client’s accounting and legal representatives and makes all efforts to fulfill all contingencies.
Assurance
If the client has any more queries after the last two steps, another phone call can be made with the concerned franchise to erase all doubts.
Exploration
The Discovery day can also be arranged. Many franchises hold discovery days so that the client can meet in person the people they will be working with.
Conclusion
After the conclusion of the discovery day, the client can sign the franchise agreement. If preferable, they can also choose to search for another franchise, and they can start the process all over again.
The Transworld Advantage
Transworld, throughout decades of operation, has accumulated several accolades cementing their position as industry leaders. Some of their achievements include:
- Awarded no.1 in Business Brokerage Industry by IBIS world
- Among the top 50 fastest growing franchises in the world for 2018, 2019 and 2020
- Ranked 13th in Entrepreneur Franchise to buy under $100k
- Top franchise for veterans for 2017 and 2018
On their website, they have also provided a useful blog of various articles related to the industry. Additionally, Transworld also supports a plethora of non-profit organizations. They have provided a long list of FAQs, and it is very easy to contact them as well. Through their website, you can also look through their listings to search for suitable businesses for sale.
Final Verdict
The main strength of Transworld is in helping buyers acquire a business, commercial estate, or franchises. They have been in the industry for more than four decades and has over 250 offices across the globe. They claim to have sold over a whopping 10,000 businesses and can be an excellent choice if you are planning on purchasing a business.