Why You Should Always Hire a Business Broker When Selling your Business.
What Is a Business Broker?
Think of a business broker like a real estate agent for your business. You wouldn’t sell your house without working with a real estate agent, and you shouldn’t sell your business without working with a business broker. A business broker can help you with all of the steps in the process of selling your business. They will help you by starting with the valuation of your business and take you all the way to the end of closing the sale.
Benefits of Using a Business Broker
While it might seem like a good idea to keep as much of the sale money as you possibly can, you should know that you might actually be losing more money by trying to save some of it.
1) Business Brokers Know How to Sell & Negotiate
Unless you have sold businesses before, it is not likely that you are going to have as much success as you would like when selling your own business. Even if you are a salesperson, you should allow the business broker to do the sales work for you. They know how to sell businesses and how to negotiate with sellers so that you get the best price for your business.
2) Business Brokers Understand the Process
Since business brokers sell business day in and day out, they know the process like the back of their own hand. Instead of stumbling through the process blindly or hoping that you remember everything, you can allow your broker to smoothly take care of the whole process.
3) Business Brokers Have Connections
Business brokers build connections with business buyers and sellers. Building connections and understanding the process of buying and selling is their whole job. Instead of trying to find interested buyers by yourself you can tap into their large networks and have multiple people interested in your business. The more potential buyers you have interested in your business, the more likely it is that you are going to get the price that you want for your business.
4) Business Brokers Are Not Emotionally Attached
When your business brokers get an offer or someone that is interested in looking at your business, they don’t have an emotional attachment that may cloud their judgment. Emotional attachment can sometimes cause problems with deals so allowing your broker to take care of the majority of dealings with potential buyers is a good idea.
5) Business Brokers Save Your Time
When you are running your business, you don’t have time to vet buyers. Your business broker does have time to vet your potential buyers and will only bring serious buyers to the table. Time is money and when you are trying to sell your business, you can’t afford to spend too much of your time out of your business. You need to focus on keeping business as usual going and even increasing business profits.
Choosing the Right Business Broker
When you are choosing a business broker, it is important that you find brokers that are experienced. If you can find a broker that is experienced in your industry, that is even better than general experience. Ask for referrals and information on past work so you can make sure that they know what they are doing and know how to handle your business.
Selling a business isn’t something that you can decide to do one day and do it the next, it requires that you prepare properly for the sale of your business. Your books must be in order, and you need to have your exit strategy in place so things will go smoothly when you transition your business to the next owner. It can take a while to sell the business and transition it, especially if you are selling it to someone outside of your industry. Having a business broker to help you through the process will make everything simpler.
Article appeared in Financetwitter 16th October 2018