Any business owner who has sold a business on his or her own will tell you it’s a long, tedious and stressful process. It is also time-consuming, and it distracts you from the day–to-day operation of the business. When your focus should be on maintaining or increasing the value of your business, all of your time and energy is directed to the sale process.
That’s where an experienced business broker can pay huge dividends. There are many areas where the business broker expertise pays off:
- Confidentiality. If you as an owner are attempting to sell your own business, that process alone reveals that the business is up for sale. Employees, customers, suppliers and bankers all get nervous, and competitors look to expedite the kill. A business broker will protect the identity of your company and contact only owner-approved buyers through a blind profile – a document describing the company without revealing its identity.
- Business Continuity. Selling a business is time-consuming for an owner who is already is wearing many hats for the company. By taking on the additional load of selling the business, essential functions will get less attention and possibly damage to the business. When a business broker is working on the sale, the owner can maintain a focus on running the business.
- Reaching potential buyers. Business brokers have the tools and resources to reach the largest possible base of buyers. Then they screen these potential buyers for revenue that would support the potential acquisition.
- Marketing. A business broker can help present your company in the best light to maximize the sale price. He or she has an understanding of the key values that buyers are looking for and can assist in identifying changes that can lead to a better selling price.
- Valuing your Business. Putting a value on a business is far more difficult and complex than valuing a house. Every business is different, with hundreds of variables that have an impact on the value. Business brokers have access to business transaction databases that can be used as guidelines or reference points. But the best way for a business owner to truly feel comfortable that he got the best deal is to have several financially viable parties bidding for his business, which is much more likely using the resources of a professional business broker.
- Balance of Experience. Most corporate buyers have acquired multiple businesses while sellers usually have only one sale. 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 your business, there’s 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.
Utilizing the services of an experienced, professional business broker allows the owner to focus on running the business reducing the risk of business erosion during the sale process. A sale facilitated by a business broker helps maximize sales proceeds by involving a large universe of buyers in a confidential, competitive bidding process.
Looking for a business broker? We can help. Contact us today to discuss your company’s needs.
Source: International Business Brokers Association