5 Reasons to Use a Business Broker to Sell Your Business.

There are 5 good reasons to use a business broker to sell your business.

Price:

Many business owners do not have a realistic idea of the value of their business. In some cases, they under value and in other cases over value their business. If not equipped with the understanding of how to apply appraisal methods appropriately, owners can make costly errors. Business brokers can help you get a fair market appraisal that suits your business in todays market. 

Owners can focus on creating value in the business:

Selling a business can be a full-time job and the demands can add stress to an owner trying to juggle both the sale and the running of the business. Throughout the selling process, clever business owners keep their businesses fully operational and add touches that would bolster the potential for a best-in-market sale. A broker will help with preparing the sale, collation of relevant documentation, promoting and marketing the business, vetting buyers, and negotiating the terms. This frees up the seller to concentrate on running the business and having always look its best.

Buyers:

Getting the right kind of buyers interested in your business is what brokers are good at. They can drive up the selling price and maximise the value of your business by approaching potential buyers that you would not have access to. Because each business is unique, business brokers can qualify buyers quicker by using their data base of contacts looking to buy a business like yours. A broker will also help you with a multi-faceted marketing plan which covers strategic marketing and advertising channels you would not have access to.

Faster, and for the best price:

Brokers can typically reach greater numbers of prospective buyers and handle the process expertly to secure the best deal. Businesses put up for sale through brokers generally have a much higher listing-to-closing rate compared to those listed directly by business owners.  Most business owners can only deal with one buyer at a time but a business broker can expose a business to numerous potential buyers to increase the chances for multiple offers and the best price.

Maintain Confidentiality and Your Reputation:

It’s difficult to vet potential buyers without revealing your identity, if, as a business owner, you choose to deal directly with buyers. Acting as an intermediary between you and the buyer, brokers will ensure that crucial information is not leaked out to competitors, suppliers, employees, or customers prior to concluding the sale as this can possibly impact the company’s competitive advantage, management structure, profitability and so much more.

When business owners make an attempt at selling their business on their own, there are many pitfalls that can cost them dearly.   You can only sell your business once, so it makes sense to use a broker and achieve a stress free sale, at the best price.