Selling a business can be a complicated and lengthy process, so it's a good idea to get professional help.
Business brokers are experts in helping their clients to sell businesses and act as intermediaries between buyers and sellers in the sale process.
There are many benefits to hiring an experienced business broker, as oppose to, say, a real estate agent or going it alone. Here are just some of the perks :
Brokers will protect the identity of the business and provide information to only pre-qualified buyers who have completed a confidentiality agreement.
Business brokers feel confident and comfortable with requesting the disclosure of a buyer's financials and are well placed to make decisions about them.
"They can also save you time by screening buyers and deciding who is and isn't serious."
The business owner can maintain a focus on running the business while a broker is working on the sale, thereby avoiding the risk of deteriorating the prospects of the enterprise during the sale process.
Expert marketing advice
An experienced business broker will have expert skills in marketing and advertisingbusinesses for sale.
"They will present your business in the best light to maximize the asking price."
He or she will have an understanding of the key values that buyers are looking for and can assist in identifying changes that can lead to a better financial outcome.
Reaching a wider audience
Business brokers have the tools and resources to reach the largest possible base of buyers. They will usually have a list of contacts who are looking to buy.
A broker will remain dispassionate throughout the process and work efficiently towards selling your business without the emotional attachment that you may have, which could lead to bad descisions.
Putting a value on a business is far more difficult and complex than valuing, for example, a house. Every business is different, with hundreds of variables that have an impact on the sale price.
Business brokers have access to business transaction databases that can be used as guidelines or reference points.
Typically, business brokers have strong negotiation skills.Since the business broker’s sole function is to sell the business, there is a much better chance that a deal will be closed in less time.
"The faster the sale, the lower the risk of employee problems, customer defection and predatory competition."
Getting the best buyer
When selling your business, you don’t want just any buyer, you want the best buyer. Even if you know what you want from a business sale, you may not get everything you want when making a deal.
A reputable business broker or intermediary will be sure that the right questions are asked to help you organise your thoughts, review your priorities and understand what the market is saying. In the end, you’ll find yourself in a better position to negotiate and close the deal—without sacrificing your goals.
This article was contributed by Cameron Ryan of Boyd Ryan Business Sales & Consultants.