In a world of accelerating transition, many companies change associates, affiliates, personnel, and even their business principles as often as they swap out ink cartridges.
This said, there are some firms, firmly grounded in their founding principles, who build relationships that stand the test of time. Transition360, a business brokerage founded nearly 40 years ago, continues to enjoy and foster generational relationships with clients. As a testament to quality relationship building, buyers of their clients often ask Transition360 to stay on board after the transaction as advisors. This allows Transition360 to maintain updates to their business valuation as well as consult them on growth and market timing. Transition360’s win-win relationships with the owners they represent, as well as the buyers who turn into new owners, have been the key to their success. These ongoing relationships are the fruit of a process built on integrity, transparency and trust.
The Transition360 Development Process, built over the past 40 years, is built on:
Trust: As a brokerage for business owners, we get to see some of the most strategic and sensitive parts of a client’s business. Naturally, this means we need to build trust in order to be successful. This type of working relationship engenders a sense of trust and mutual cooperation between the client, their CPA, their attorney and the broker. Since Transition360 has typically built a relationship of trust with clients through the pre-market valuation process, there is already a certain level of understanding and respect as we engage the market. Trust is the key to managing challenging conversations around operations, employees, value, exit strategy, and performance in a manner that supports the likelihood of success when an offer comes in.
Knowledge of the Business: Today’s companies and organizations are more complex than ever. The world in which they operate and business processes that drive them continue to accelerate with more and more expectations of profitability. A broker should understand the nuances of the client’s business as well as all potential angles a new owner could take to capitalize on untapped resources, relationships, products or market trends that the current owner may not have had the time or energy to incorporate.
Accountability: A long-term business relationship means that the brokerage firm will take ownership of, and accountability for its business principles. If they’ve been around for multiple years, their success can be tracked over a meaningful period of time. In our case, nearly 40 years.
Continuous Improvement: Helping the seller truly see the company through the eyes of a buyer is part of Transition360’s secret sauce to continuous improvement. Starting the transition process early gives an owner the opportunity for the owner to see where improvements are needed before going to market. The parties can work together on developing mutually beneficial key performance indicators, then incorporate this changes into the marketing overview when a client enters the market. Typically, the longer Transition360 works with a coachable client, the more efficient and profitable the client becomes. A prospective business buyer will recognize and place value on new improvements and methodologies that show an owner was spending time and money to ensure the company was as prepared as possible for a transition in ownership.
Commitment: Business Exit Strategies are complex and emotional and demand a committed partnership between client and broker to be successful. Buyers and banks don’t always respond as expected so as debates, frustrations, and differences come up throughout the journey, our process has typically already prepared us for the ride. Commitment helps us all focus on the finish line: selling the business to the right buyer for the optimum value.
Clear Communication: To be a successful brokerage, we do everything in our power to avoid miscommunication. This means we try to over communicate. We’re often expected to share critical information with sellers, buyers, banks, attorneys, real estate agents, escrow agents, insurance agents and advisors in ways that would be impossible without communication processes and systems. These systems are the only way to ensure we’re doing our best to get messages through. We are in the business of communication.
Costs: Monthly retainers, consulting, issuing requests for proposals, evaluating bids, drawing up new contracts and on-boarding new service providers at the last minute can cost the business heavily in terms of time and money. Given our experience, it is more efficient and cost-effective to develop meaningful relationships with long-term strategic partners. With agreed upon goals of managing costs and optimizing company value, this dramatically improves the client partnership and maximizes their company’s sale price.
Timing: A larger and larger percentage of business owners we meet with are prepared to go to market now. Many owners wanted to go to market at the top of the last cycle and missed their chance. Now they’re leaner, more organized, more profitable, and ready for market. Whether this is you or you’re still a few years out, Transition360 process can help you see the light at the end of the tunnel and secure sine peace of mind.
About the 93% Close Ratio
The 360° Development Program™ is an exclusive multi-phase service designed from 30 years of best practices and experience learned from selling businesses. This process helps the team at Transition360 eliminate deal killers before they happen. The Result…………a 93% success ratio.
What’s Your Exit Strategy? Who is Helping You Make It Happen?
Please contact us today for more information about the Transition360 process.