The process of business acquisition, selling, and valuing can be a daunting task for entrepreneurs and small business owners who are appearing to buy, or sell a business. Such processes require many aspects to look after such as assets, growth, consumer demands and future potential of business in the market and can only be done by professionals who have deep insights of the market. With a mission to assist business leaders in business transition process, whether it is buying a business/franchise or selling it, Transworld Business Advisors is providing end to end assistance and the professional services that successfully bring buyers and seller together.
Due to its expertise in the market, Transworld Business Advisors is known to be the world leader in the marketing and sales of businesses, mergers and acquisitions, and franchises. Its state-of-the-art training facility has helped thousands of entrepreneurs achieve their dream of business ownership.
The Franchise Universe caught up with Scott Hislop, the President and Owner of Transworld Business Advisors of Minnesota, to shed light on insights of complex process of business transition and how the company’s professional advisors are helping clients to exceed in it.
Below are the highlights of the interview:
Give us a brief overview of your position at Transworld Business Advisors, and your journey since inception.
As President and Owner of Transworld Business Advisors of Minnesota, I assist business and franchise owners to confidentially market and sell their businesses. I bring 30 years of Owner/Operator experience to my role, giving me a unique perspective for business brokerage. As a 6th Generation Farmer, I understand the effort, sacrifice, and dedication that goes into running a successful business. I’m passionate about helping other business owners accomplish their goals. Those looking to buy or sell a business come to me for my knowledge of financial information, how businesses operate, and what makes them successful. Every member of our team shares my passion for assisting entrepreneurs accomplish their goals and dreams by selling or a buying a business.
As a business leader what is your opinion on the impact of the current pandemic on the Real Estate Industry and the Mergers & Acquisitions in general?
We have seen an increase in activity, but the reasons for urgency on both the buy side and sell side are different than they were pre-Covid. For example, we are seeing a few distressed industry segments i.e.: (Hospitality Industry, Convention Industry) that warrants a discounted rate. We are seeing many industry segments who have done very well though the pandemic and are wanting to sell because they cannot find enough employees to run the business. On the Buy Side there are many companies wanting to acquire another segment for their business to make their company more pandemic proof. Many individuals who work in Corporate America are afraid of getting laid off and are tired of answering to a board of directors are looking to buy a business of their own.
What is your opinion on the necessity for businesses to align their offerings with newer technological developments, especially when it comes to Franchise Sales?
I think business owners should always have a pulse on new technological developments for their industry segment. This can be too time consuming and expensive if you are always the Innovator and Early Adopter though and if you wait too long and are consistently the Laggards you stand the risk of being too uncompetitive and you will not be able to stay in business. My observation is the business owners who are on the front end of the early majority are the most successful.
Please list your strategies and services that make you and your franchise standout from the competition.
Therefore, I decided to get into this business as I was frustrated with the competitions lack of these items when I was trying to find a business to purchase:
- Consistency and Uniformity among all company listings
- Team Approach as opposed to each agent working in their own silo
- Using Automation and Technology to provide a better experience for the Buyer and Seller
What are your views on technological companies for valuations, mergers, and acquisitions to deliver the returns for investors?
We need to adapt and use new technology whenever it is appropriate, but this is still a
relationship business and there are so many different nuances between every business that I don’t see the M & A Industry being able use a Zillow Like Platform very effectively.
In what ways do you or Transworld Business Advisors contributed to the community?
Every Office and Advisor in the Transworld System shares a passion to enhance every community around the world. This is done with volunteer efforts and financial contributions with many nonprofits and community organizations and involvement in each local city.
If given a chance, what change would you bring to help Business Brokerage, and Franchise Consulting?
There seems to be a disconnect in our industry with many (not all) CPA Firms on business valuation. We have had many clients use their CPA Firm for guidance on their current business value or value on business they want to acquire that was simply not accurate or in touch with the current market. We need CPA’s, Attorneys, Financial Planner, Exit Planners, Appraisers, Closing Agents and Business Brokers. Everyone needs to stay in their lane of expertise to best serve each client.
As an established business leader, what would be your advice to the budding entrepreneurs aspiring to venture into the Franchise Industry?
I would look for an existing franchise that is a going concern as the time lag starting from scratch is always longer and more expensive that you expect it to be.
How do you envision on sustaining your company’s competency in a cutthroat and volatile world of business?
Knowing and staying true to your core competencies such as Honesty, Integrity, Hard Work and Creativity is never going to go out of style.
Where do you see your franchise in the next five years?
We are going to be the largest and highest quality business brokerage firm in the Upper Mid-West.