BY JUDY CARLSON
WEALTH MANAGEMENT CONTRIBUTOR
May’s First Friday Focus, held the first Friday of every month at Comedy Works-South at the Landmark in Greenwood Village, featured Chris Cantwell, Transworld Business broker.
Transworld, an international company with offices in all 50 states, exists to help company owners sell their business and buyers facilitate the process of evaluating potential businesses and franchises for sale.
The Rocky Mountain office, headed up by owners Al and Jessica Fialkovich, consists of 15 brokers and is consistently one of the top Transworld offices in the world.
Chris Cantwell grew up in Golden, has over 20 years working with small businesses and is inspired by visionary entrepreneurs Ted Turner, George McKerrow Jr. and Norman Brinker.
According to the Colorado Small Business Administration, a small business consists of less than 500 employees. Today there are 611,000 small businesses in Colorado comprising 99.5 percent of all businesses. Over 1 million employees, approximately 48 percent, are working in small businesses.
Cantwell’s presentation went on to describe how to build value into your business. Assemble a professional team with a business broker, transactional attorney, CPA and wealth adviser. Thoroughly document standards, processes and procedures. Know your numbers. Evaluate vendor and customer contracts. Consider key employees and how involved you are in the daily business operations. Assess brand, culture, technology, data and financials.
Finally, how is a business valued? There is no one way to value a business; however, there are industry standards based on certain multipliers.
Just as real estate brokers help with the purchase and sale of houses, business brokers help with the purchase and sale of businesses. While it’s possible to buy and sell without a broker, it may be wise to consider working with a broker. Missing details in a significant transaction could prove very costly indeed.
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