What are the benefits of using a broker to sell my business?
Confidentiality. A business broker will use his/her best efforts to protect the identity of the company using a blind profile – with targeted potential buyers describing the company without revealing its identity. As the process moves forward, the broker will obtain a Confidentiality / Non – Disclosure Agreement, (NDA) from serious buyers who need to perform a more in depth analysis and due diligence of the business.
Maintain Business Continuity. Selling a business is time consuming for an owner. With a business broker, the owner can maintain a focus on running the business – and maintaining its inherent value – while a broker is working on the marketing and sale.
Reaching Potential Buyers. Business brokers have the tools and resources to reach a large potential base of buyers.
Marketing. A business broker can help present your company in the best light to maximize the sale price. He or she understands the key values that buyers are looking for and can assist in identifying operational changes that may lead to a higher selling price.
Dealing with Potential Buyers. Your business is likely to attract interest from many kinds of buyers. There are commonly ten different kinds of potential buyers and your broker should be able to help sift through various “interested parties” and help find legitimate buyers.
Pricing a Business. Putting a value on a business is far more difficult and complex than a house. Every business is different, with many variables that have an impact on the value. We also have access to business transaction databases that can be used as guidelines or reference points. However, the best way for a seller to truly feel comfortable that he has a good deal is to have several financially viable parties bidding for the business, which is much more likely using the resources of a professional business broker.
Balance of Experience. In dealing with corporate buyers, many of them have acquired multiple businesses while sellers may have only one sale in their business career. In addition, corporate buyers may spend an inordinate amount of the seller’s time investigating a potential purchase without any timeframe or serious intention of acquiring the company. Although, the seller’s company may fill a niche with the corporate buyer, the corporate buyer already has a time-consuming job – their current business!! The risk of not managing this buyer is that after a lengthy period, the corporate buyer may simply decide that the acquisition is not an addition, but a distraction!! An experienced business broker can level the playing field for a business owner making his one and only business sale.
Closing a Deal. 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.
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