The benefits of using a business broker
You have invested money and time into your business and if you’ve decided to sell, it can be a lengthy and overwhelming process that can potentially see you short-changed if you try to do it on your own. Business brokers work in your best interests and with their help, you are more likely to receive an offer you are happy with, allowing you to move on to the next chapter. Here is why you should always consult with a business broker if you’re looking to sell.
Expertise in the field
Well established business brokers have many years experience in the industry and have a plethora of exclusive contacts. This allows them to promote your business from the get-go to bring you strong leads. The more people you have interested in your business, the greater chance you have of selling it for the price you want. Without this advantage, your business could take a significant time to sell. Finding genuine buyers that are interested in your specific type of company takes time. If your broker’s connections don’t produce quality leads, they know exactly how to market your business to bring you results. It’s a good idea to collaborate with a broker that has experience working in or selling a business like yours. This ensures they have an in-depth understanding of how to advertise your business in the absolute best light, not only that, a broker that has a clear understanding of your business can answer questions on the spot which instill confidence in prospective purchasers.
Maintain uttermost confidentiality
Business brokers are well aware of how critical maintaining confidentiality is for a business when selling and ensure that it is upheld to the highest standard throughout the entire process. A reputable broker will sign a confidentiality and non-disclosure agreement and make sure potential buyers sign one too before providing them with information about the business. They understand that releasing information about your company can be detrimental if your competitors or individuals involved in the business catch wind of you selling.
Buyer qualification process
Business brokers implement a buyer qualification process to prevent time wasters and to sift out ineligible buyers. This can save you a considerable amount of time on dead leads. They will ensure that the potential buyers meet a set criteria by conducting an interview. They will investigate whether the person is in a position to buy by asking a series of questions such as:
- Do you have an interest in any other businesses at the moment?
- What’s your price range?
- Do you have to sell before buying?
- How long until your pre-approval lapses?
To pre-qualify, the potential buyer must have the funds available for the deposit, qualify for loans if needed, and have experience in the business they are buying or have a plan in place to run it successfully once they take over.
Optimal Marketing Network
Marketing your business correctly can be the difference between low interest with little to no leads or a variety of eligible buyers keen to commit to a sale. Make sure that the broker you choose is across all ways to promote your business to the right types of buyers. Your broker can prepare your business for sale and advertise it on an array of platforms to provide maximum exposure. It would be very difficult for a business owner to generate this level of interest on their own, not only that, it can be quite time consuming and time is something business owners usually don’t have a lot of.
Running a business is no small feat and trying to sell it at the same time can be extremely stressful. A business broker can take care of all aspects of selling your business. leaving you to do what you do best and run your business. They will communicate with potential buyers and meet with them on your behalf. Your broker will regularly update you throughout the process and offer professional feedback and advice along the way.
They can negotiate the best price
Business brokers are fantastic negotiators – they do it regularly as it’s part of their job. They can help you negotiate the price and the terms of the sale to bring you the best outcome. They won’t succumb to the first offer in fear of not getting another. Using their many years of expertise, they will have a definitive sense of the businesses worth and will not settle until you are satisfied with the result. Having a broker on your side could potentially see you receive thousands more for your business than if you went at it alone. While brokers do cost money, the extra money you could make on your sale and the minimal effort required on your behalf makes them extremely worthwhile.
The benefits that a business broker can offer are hard to ignore. If you are serious about selling your business and want to get the maximum price for it, it pays to speak to a professional. Most offer free consultations which is a good opportunity to see where you stand and what strategies you should be considering moving forward. Our team here at Morgan Business Sales are experts in the industry and would love to help. We have successfully sold over 500 businesses and we know what it takes to sell your company. Get in contact today to discuss your options.