The involvement of a team of specialists in selling a business helps to maintain its market value both by quickly solving the problems that arise, but also by preventing them, because the process is, in most cases, long. You may need a lawyer, an accountant, but also an appraiser, a consultant and a broker.
A broker can play a very important role in selling a business, both for entrepreneurs who do not have experience in selling a company, and for those who have experience, but prefer to dedicate their time to running it.
A Business Broker can give you an estimate of the sale / purchase value of a business or transaction in general and can advise and assist you in the sale process. All these without revealing your identity in front of anyone (if the whole market finds out that the business is on sale, it will affect the sale value of the business or even block the transaction). Selecting potential buyers (pre-qualification of the buyer) before meeting with the seller, preliminary discussions, presenting opportunities and pre-negotiation are also services that can be safely provided by a broker, as well as assistance in the due diligence process and final negotiations, but also the assistance subsequent to the completion of the transaction.
The benefits of working with business brokers
- setting the asking price for the business is a real first challenge for sellers, and a Business Broker connected to the market pulse, with experience and a network of business contacts can provide valuable indications in this regard;
- conducting an objective analysis of the business, to know what adds value to the business and what could be a problem for selling it, from the perspective of the buyer – investor;
- a broker can help you maintain the confidentiality of your intention to sell the business and represent you before disclosing the details to those who are really interested to purchase;
- making important decisions during discussions with potential buyers;
- advertising the sale in relevant business environments, taking over the requests from the interested people and checking their good intentions.
For businesses that are more difficult to evaluate, hiring a broker is very important because it can help you determine the valuation method and the right price for your business. A good broker will charge a commission, but the services provided and the profit it can generate is worth the investment.
How to find the right broker for your needs
- Make sure the broker you want to work with deals with businesses, not with real estate;
- Interview several brokers to find the right one;
- Ask them if they have ever sold business in the same field as yours;
- Discuss their experience, how long they have been in the field and how they intend to advertise you.
Privacy is very important!
Do not forget to sign confidentiality agreements with the sales team, to ensure the normal operation of the business during the sales and transition preparation process. When there is too much information about your plans, you can lose customers, employees and especially potential buyers.