Think back to a time when you tried to do something that you had never done before... by yourself.
How did it turn out?
When it comes to the sale of your business, this approach can cost you far more than just lost time. It can cost revenue, employees, confidentiality and, ultimately, the final value of your business transaction.
We have organized 6 solid reasons for you to seriously consider working with a business broker when you sell your company.
Every business is different and a multitude of variables impact its eventual transaction value. Valuing a business is more difficult and complex than valuing a vehicle or a house. Business brokers have access to methods, tools and databases that can be used to develop the asking price for your business. Businesses that are accurately priced can justify their pricing and navigate a transaction more easily.
Selling a business is a time-consuming process. Choosing to work with a business broker enables you to maintain focus and continue running the business while the broker organizes, markets, negotiates and brings a viable deal to the table. Once qualified buyers begin due diligence, you'll then play a key role in instilling confidence in the buyer that the business can be purchased and managed successfully after the transaction. How a prospective buyer experiences the business’ operations will have a large impact on the sale of the business.
Corporate buyers typically have experience acquiring businesses. Often, sellers have limited experience selling a business. A broker’s experience adds value and evens the playing field. From valuation to recasting of financials, knowing what (and when) to emphasize certain benefits helps prospective buyers understand the economic advantages of your business. Similar to when you work with a legal or financial professional, leveraging the expertise of a business broker when you’re selling your business makes a quantitative, positive difference.
Sellers often find it difficult to maintain confidentiality during the sale of their company. Business brokers have procedures to maintain confidentiality throughout the sale of your business. They work directly with buyers and take steps to secure privacy. They're experienced in marketing businesses without identifying them, while protecting their client's identity. Prospective buyers are qualified and bound to confidentiality before learning that your business is for sale. Only approved buyers are then introduced using a protected listing profile.
Business brokers have the tools and resources to reach prospective buyers. Brokers will also know (and market to) prospective buyers, other businesses and private equity groups that are looking for businesses to buy. A business broker then helps to present your company in the best light possible to maximize its value and sale price. The broker usually pursues multiple potential buyers. This way, if a potential transaction falls through, other interested parties can be engaged.
6. The Best Deal
A business broker’s primary purpose is to sell your business. Deciding to work with a broker typically results in a higher quality transaction, in a shorter period of time, with a reduction in risk. Good brokers are impartial and can deliver difficult news to the buyer, especially when details need to be modified, retracted or negotiated aggressively while maintaining rapport. Brokers have access to multiple lending sources and can structure financing in a variety of ways. Brokers are skilled negotiators and work on your behalf to secure the best deal possible.
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