It takes a lot of time and effort to develop a profitable business. In time, some will want to sell a business and start a new life or get focused on something completely different. However, it is not always that easy. Just because someone has been running a business successfully for years doesn’t mean that they are equally skillful when it comes to the sale of their business. Why is it right to hire a broker, and what can they do in comparison to trying to sell a business on one’s own? In simple words, these are qualified professionals who have directed their efforts and knowledge in that market segment.
Just as we go to doctors when we are sick, a car mechanic when something is wrong with a car, a tailor if we want to make alterations to a piece of clothing, business brokers are concerned with the sale of businesses, because, as we said, that is their specialty. Although there are countless reasons why you should not hesitate and hire a business broker, here are just a few of them.
1. Business Valuation
It is very likely that even though you are aware of how much you have invested in your business so far, you will not assess its value realistically. Brokers use several marketing data points as sources to determine the value of your business as realistically as possible, and the satisfaction is mutual. Guided by experience, they will probably give you some tips on how to increase the value of the sale of your business. The financial analysis that the broker will do should be detailed and show a realistic picture of a company’s earnings. Business brokers employ a team of professionals like business lawyers and accountants to analyze and produce the most realistic and accurate business valuations. This will give you the best insight into your own business.
2. Confidentiality for you and the business
You need to know that there will be non-serious potential buyers who want to investigate how you do business and extract essential and confidential information about the company. A business broker will recognize them very quickly and will know exactly how much to say until an intent to purchase and confidentiality/non-disclosure agreement is signed. They will also explain to you what information is needed so that the potential buyer knows before he decides to buy.
3. Good marketing
Marketing businesses for sale is a true art. Since confidentiality is such an important factor when dealing in mergers and acquisitions, an experienced business broker will have a pool of buyers they work directly with or know how to market a business without jeopardizing the business for sale in case a deal falls through. One such business broker with decades of experience in the M&A industry and is dedicated to confidentiality while marketing is, Neumann Associates, a business brokerage located in the NE of the US with decades of experience.
4. Help throughout the deal
Many think that the moment they reach an agreement with a potential buyer, they have solved all their worries. Unfortunately, you’re mistaken, because there is still a lot of work to be done that you have to do very carefully. There are many pitfalls to transactions, but brokers will be very adept at dealing with lawyers or accountants. But how? Very simple. Guided by many years of experience, brokers can recognize situations where something has gone wrong and will do everything to move the agreement in the right direction.
5. You can still stay focused on running your business
The most important thing when deciding to sell a business is to maintain company growth. No one will be interested in buying if things are on the way down instead of the way up. This is one of the most crucial things to keep in mind when selling a business. A business broker can help coach you through this process and that is their job, performing all the due diligence while you still run the business.
6. Brokers are one step ahead with their database
Not only do sellers ask for the help of brokers, but buyers also decide to as well. Intelligent business buyers work with business brokers because they know that they will dig in deep to make sure a business is solvent and in a good state and there are no hidden surprises. Business brokers work on both sides of a deal. Someone like ExitGuide will help you realize your real business value and to make you respect your work even more.
7. The chances of completing the sale are higher
Statistics have shown that your chances of selling a business increase by up to 40% by hiring a business intermediary. Moreover, researches established that more than 60% of companies sold were not even for sale. It goes in favor of the broker’s ability to accomplish even the impossible. It will also make it easier for both parties to make the sale, as it will provide all the paperwork.
As you can see, there are many reasons to employ the services of a business broker to aid in the sale of a business. They bring professionalism, industry experience, a level of confidentiality and can serve as mediators so emotion is not a factor.