When you are selling a business, there are a lot of factors to consider, as well as alot of your precious time. It is not uncommon for the business owners selling their companies to become completely overwhelmed by the whole process. Getting a business broker involved can help you sidestep more than just a few pitfalls that so many fall into – guided by an experienced hand – it is a much easier process.
A Business Broker, by definition is:
“an individual or company that assists in the purchase and sale of small, main street businesses. These agents can take on a variety of tasks to help their clients achieve their acquisition and offloading objectives, and might specialize in companies belonging to certain industries or possessing specific, unique characteristics.”
If you are to hire the right business broker, they will assist you with everything, from finding the buyer that best suits your business, specialised support in providing the paperwork and also answering all of your questions along the way.
7 Reasons Why You Should Hire A Business Broker
Determining the Value of Your Company
Buyers and sellers alike have a huge vested interest when it comes to determining the value of a business. It is this reason that the services of a business broker who is impartial are so critical. Business brokers utilise models that are specialised to accurately and efficiently determine the value of a business.
The models that are used take hundreds of parameters and data points into consideration before arriving at a final calculated figure.
Alone, buyers and sellers do not have the resources and the valuations are really just a guestimation. The last point really comes down to trust. Both of the parties that are involved in the transaction are more likely to trust a valuation that comes from an independent company.
Helps You Determine An Accurate Selling Price Baed On Market Conditions
After the valuation of the business is complete, the role that the business broker then takes on is to assist the owners to find the right listing price. There are many factors that go into this part of the process, with the two largest considerations being how much time there is in which the deal needs to be closed, as well as the market conditions.
Brokers Keep It Confidential
Arguably and most likely the most important factor when it comes to selling your business is confidentiality. Vendors, clients and most importantly employees need to be informed only when the deal has been signed. This is mainly because employees tend to leave their jobs when they begin to suspect that the company they are working for is no longer stable.
Gaining knowledge on the business owner’s quest to sell has proven time and time again to have a hugely negative impact on employees. Our business brokers use discreet marketing channels to promote your listing in order to avoid this problem.
They Help You With the Paperwork
Paperwork is most certainly one of the biggest and most time consuming practices in any business. At a high stress time of selling, adding extra paperwork to your already toppling pile is not the best idea when this is paperwork that requires a lot of attention.
Right from drafting the agreement, organising reports for the buyers review and all the little bits along the way, we take on the responsibility almost entirely, of course your approval and signature will be required at different points.
Performs Pre-Qualification Checks to Filter Out the Right Buyers
As business brokers, you can think of us as acting like a filter. We make sure that only people that are genuinely interested and have the financial backing for that interest gain access to your details in order to get in contact.
We run pre-qualification checks so only the most qualified buyers are in contact with you alongside non-disclosure agreements and requests for proof of funds. This goes such a long way in protecting your business information from falling into the wrong hands and we pride ourselves on how we conduct every business sale.
Some Business Brokers Help Buyers Get Loans
We also assist buyers in financial services, helping buyers gather the funds to buy a business. This process is something that greatly boosts the number of potential buyers and thus can help in closing your deal quickly.
They Usually Have A List of Potential Buyers
We have a huge database of potential buyers that you gain access to when you hire us to negotiate the sale or purchase of your business. Most of this list are acquired from previous dealings and have already been screened, this in turn significantly speeds up the process again.
We assist business owners and buyers through the full process of buying/selling a business, from valuation to sale completion. Our reputation speaks for itself and we pride ourselves on our service, speed and customer satisfaction.