The Process
Expectations when selling a business
- Home
- The Process
- What Sellers Can Expect
Selling a business may be a learning experience for business owners. If you haven't bought or sold a business in the past, you will gain new expertise when you do.
There are large firms full of accountants and lawyers dedicated to buying and selling businesses. The process can be very complicated, but it doesn't have to be stressful.
When sellers and buyers are a good fit, the process should be positive. That's our goal at Tsetserra Growth Partners.
Tips for a positive selling experience.
Release any of your preconceived expectations in these areas.
- Who you think your buyer will be
You may have imagined selling your business to a certain kind of buyer. Sellers often hope a child or family member will take over their business. Some business owners imagine their employees will want the business. Others imagine their business will become part of a large company they admire.
Frequently, it doesn't work out that way. Their dream buyer either isn’t interested or isn't a fit to own and run a business.
Often the ideal buyer is someone you don't expect and doesn't fit any of your preconceived notions.
What you want your legacy to be
You've built a business you're proud of, and you should be! You hope it will continue to grow and support your community and your employees. However, you may have a limited vision that could be expanded even more by a potential buyer. Maybe they can imagine an international market for a widget you make. Perhaps they are aware of another business that would benefit from the services you've perfected.

Preparing your business for sale
Sellers sometimes think selling their business is the same as selling a home. They try to make everything as perfect as possible - based on their perception of perfection. They may avoid selling until they reach this magical point in time. Postponing a sale may not be necessary, and changes you plan to make may not be an improvement to all buyers. Maybe you want to sell off some of the equipment related to your construction business, while a buyer may be looking to add those assets. They may own another company that needs earthmovers.
Either way, don’t delay, if you are contemplating selling your business start organizing your information (cleaning up financials books, getting appraisals, and locating leases, deeds, and titles) about a year before your desired sale.
Either way, don’t delay, if you are contemplating selling your business start organizing your information (cleaning up financials books, getting appraisals, and locating leases, deeds, and titles) about a year before your desired sale.
What you think your business is worth
Business owners usually overvalue or under-value their businesses. They are so involved with their business that they aren't entirely aware of the big picture. Sometimes an owner's estimate was accurate up until a very recent unforeseen development (such as natural disasters, political forces, or changes in technology). That's OK, it's not their job to create valuations for businesses, but they should release their expectations until they find out the fair market value of their business.
Business owners can prepare for a valuation of their business by getting their books in order and getting appraisals of their assets. Many other factors influence a valuation, but the preparation of these basics will make the process go smoother.
Business owners can prepare for a valuation of their business by getting their books in order and getting appraisals of their assets. Many other factors influence a valuation, but the preparation of these basics will make the process go smoother.
Fair market value
Fair market value is the price a buyer would pay a seller if the buyer and the seller were under no pressure to buy or sell. The buyer doesn't have to buy, and the seller doesn't have to sell.
Here are some examples of buyers and sellers under pressure. A fair price is not their only priority.
A driver half-way to their destination runs out of gas. The driver has to buy gas. The gas buyer will overpay for gas if they have to. We've all encountered this in isolated areas on road trips. The seller has leverage.
The owner of that remote gas station needs to sell their business quickly because their spouse got a job in another state, and they have to move within months. The buyer may not have time to wait for a fair market value offer. They may accept a below fair market value offer. In this case, a buyer has leverage.
Fair market value is possible in a deal where neither buyer nor seller is under pressure to make a deal. They can buy and sell or walk away.
Here are some examples of buyers and sellers under pressure. A fair price is not their only priority.
A driver half-way to their destination runs out of gas. The driver has to buy gas. The gas buyer will overpay for gas if they have to. We've all encountered this in isolated areas on road trips. The seller has leverage.
The owner of that remote gas station needs to sell their business quickly because their spouse got a job in another state, and they have to move within months. The buyer may not have time to wait for a fair market value offer. They may accept a below fair market value offer. In this case, a buyer has leverage.
Fair market value is possible in a deal where neither buyer nor seller is under pressure to make a deal. They can buy and sell or walk away.
What you need to know about working with Tsetserra Growth Partners
- Finding the fair market value of a business is a priority for Tsetserra. Large private equity firms, business brokers, and mergers and acquisition (M&A) firms may have other priorities. Inflated expectations of future growth may be set by some firms who benefit from a larger sale price.
- Tsetserra is under no pressure to buy, and we prefer sellers under no pressure to sell. We aren't bargain hunting. We are looking for stable companies to operate and grow.
- As an independent group, we choose to acquire businesses based on our own criteria. If we like a business we move forward. You won’t be stuck in a long approval process.

How we structure deals
-
1Align motives to protect a business' legacyThe deal structure will be a win-win; both parties compromising for everyone to win. Our process is smooth and focused on keeping the legacy of the business intact. We apply a streamlined approach to due diligence with a typical time frame of no more than six months, start-to-finish.
-
2Design an appropriate cash structure to close the dealBuilding the ideal cash structure for a deal is important, when an owner’s equity in the business may be their largest asset. Tsetserra proactively looks to create a satisfying after-sale structure for the business owner. One that recognizes and celebrates all they've accomplished.
-
3Create a new launching off position for businessTsetserra Growth Partners is just that, a partner looking to grow your business in its next chapter. We work to create a stable starting financial position for the business after its sale. This may involve aligned motives via seller financing (a seller note) or an escrow arrangement that includes part of the purchase price.

How we get to the finish line
One of the biggest challenges of selling a business is getting through the whole process, which often takes three to six months. This time is full of emotions, weighing heavily on everyone involved. We support owners during this process by being as forthright as possible. We know the transition process is a challenging journey for everyone. This time will consist of asking many operational, financial, legal, and technical questions.
When the time is right, we engage with vital team members, the company’s major customers, and suppliers. We provide the seller with recommended resources in legal and accounting. We hope to be a helping hand during this time. Acting with transparency to assist the seller during due diligence is what distinguishes Tsetserra Growth Partners from other buyers and brokers.