Updated: Nov 8, 2022
Have you been looking to sell your business? You may have considered whether or not to hire a business broker for their services. By hiring a business broker, you will be more likely to sell your business confidentially, at a higher price, and to better qualified buyers.
Here are 6 great reasons to hire a broker to sell your business:
#1 - Negotiating
A quality broker can leverage their experience to help you secure the best possible offer and terms for your business. An experienced broker is steeped in knowledge about negotiating price, terms, and other key aspects of the sale. From follow-ups in the early stages, to the final contract; the broker has a role an owner could not effectively do themselves.
#2 - Keeping Confidentially
A broker can help maintain confidentiality, identifying the business only to prospective buyers who qualify. Most business owners do not want their staff, customers, or suppliers to know they are considering selling. A broker can secure confidentiality undertakings, screen prospects, and phase the release of information and only giving information to prospective buyers who qualify. The best way to ensure confidentiality is to have a broker working on your behalf allowing you to remain anonymous.
#3 - Expert Valuation
Valuing a business can be very difficult and complex. Many business owners overprice their business and as a result, many businesses take a long time to sell or never sell at all. Pricing your business strategically will help you sell quicker. A quality broker who has merger and acquisition experience can guide you to a fair market value, fair market value is what a willing buyer will pay and a willing seller will sell. A broker can help you obtain a certified business valuation which buyers prefer because the process is unbiased and reflects the business's true worth. The broker can negotiate the sale price using the appraisal and other factors that impact company value; their goal is to ensure that the seller does not leave money on the table.
#4 - Marketing
A quality broker will discuss your goals and reasons for selling and will learn all about your business. Brokers are skilled at marketing business opportunities to interested buyers and will help you highlight the strengths of your business, outline opportunities for growth, and minimizing any weaknesses so that you can receive the best offer from qualified buyers. A quality broker will have an extensive marketing program and advertising strategies to give your business maximum exposure. A comprehensive marketing plan is far more effective than a business owner could manage on their own.
#5 - Overseeing due diligence
Due diligence is a process which may take more than 30 days to complete and can be the difference between your best deal ever or your worst. Brokers know which documents are most relevant for due diligence, and your broker can help you gather and organize important documents. Requests for additional information can be frustrating, and you can hand off that task to your broker.
#6 - Closing a successful sale
A broker will work on your behalf to drive the sale of your business until it has successfully closed. The broker will negotiate the final price on your behalf, and address the laws, regulations, permits, and licenses that impact the sale. Your broker can help provide services to the buyer and seller in support of due diligence, financing, lease assumption and all contract contingencies. An experienced broker can guide the seller on best practices, and what to expect during the closing.