An experienced, professional business broker will ensure confidentiality, attract the right buyers, negotiate the best terms, and bring your sale to a successful closing.
Below are the top 5 reasons why you should consider hiring a business broker.
1. Business Brokers Have Broad Access to Business Buyers
A business broker can bring more prospects to your business than you could on your own. They have a broad network of buyers waiting for the right business to buy. You may know one potential buyer, but your business broker will know many and will make them compete to buy your business. Business brokers also separate the buyers from the casual seekers (“tire kickers”), which can save you valuable time. Your job as a business owner is to keep your operation running successfully, maintaining or even increasing revenues, while your business broker does all the work involved in selling your business.
2. Pricing and Negotiating
In most cases, a business broker can get you a better price than you could on your own due to their extensive experience in negotiating deals. They can price your business properly by determining the market value of your business based on experience, valuation techniques, and the use of valuation experts. They can also provide financing options to buyers, which helps drive up the market value of your business.
3. Business Brokers Ensure Confidentiality
If word gets out that you’re selling, your business could be negatively impacted. Employees will hear about you selling your business and may become distraught or leave. Customers or clients may lose confidence in your products or services and look elsewhere.
A business broker acts as a shield between the business owner and prospective buyers, keeping your identity and your business identity confidential while fielding all inquiries and vetting prospective buyers. A broker will ensure that vetted buyers sign strict non-disclosure agreements before they reveal the identity of your business or any further details.
4. Packaging and Marketing
A quality broker can provide advice on how you can make your business more attractive and saleable. They have the expertise and know what makes a business attractive to a buyer. They can, therefore, identify strong selling points for each business, which a seller might not have considered. After all, selling a business is just that… selling! Packaging and marketing are critical to the successful sale of a business.
5. Managing the Process
Another reason to use a business broker is that your broker will manage the sales process. Selling a business is much more complicated than selling real estate. There are many steps in the process and many obstacles to overcome along the way. Brokers solve problems as they come up (they always do!), manage all the moving parts, and keep the parties involved (buyer, seller, lawyers, accountants, consultants, and financial institutions) moving forward toward a successful closing.
You’re an expert in running your business; your business broker is an expert in selling your business!
If you concentrate on running your business while your broker invests a very substantial amount of time to value, package, market, and sell your business, your sale is sure to be successful!