Why You Should Hire A Business Broker To Sell Your Business
There are many reasons you should hire a business broker to sell your business. Undoubtedly there are many more than 12 reasons. These are just a few core examples of the importance of hiring a business broker and the key services a broker will provide when you sell your business.
1. Separate The Emotions Of Selling A Business
Many business owners we work with point out how valuable this was throughout the process of selling their business. There’s no denying selling your business is going to be one of the most emotional and difficult things you’ve ever done.
If you built your business from the ground up, you are going to be selling what you’ve invested in the past 10 to 30 years of your life. A business broker can help separate you from certain parts of the sale. This will help to make it less painful emotionally.
2. Business Brokers Can Perform A Business Valuation
In order to sell your business, you need to know the value of your business. This is one of the many benefits of hiring a business broker. We can help determine the value of your business, so you don’t miss out on the most profitable price of selling your company.
Knowing the value of your business is the first step in effectively selling it. This way, you can retire without worrying about finances.
Get a business valuation and start the process of selling your business.
3. Provide Confidentiality Throughout The Sale Of Your Business
One of the most important things a business broker provides is confidentiality. If you try to sell your business on your own, there is a likelihood that word will spread throughout your company and possibly your industry. When you contact a business broker, we are able to keep your information confidential.
If you were to contact a competitor on your own to try to sell your business to them, the word might get out that you’re selling your business. If we were to contact them, they wouldn’t know which competitor was selling.
Keeping the sale of your business confidential protects your business’s future. If investors or internal employees caught wind that your business might be sold in the near future, you could see an exodus of employees and a withdrawal from investors. This would largely damage the functionality and value of your business.
4. Market The Sale Of Your Business
A huge advantage of selling your business through a business broker is their existing connections and marketing processes. Marketing the sale of your business on your own can cost large sums of money without an effective return on investment. Hiring a business broker will not only lead to marketing the sale of your business but effective marketing.
As a business owner who has had to work with your own business’s marketing, you know, there is a huge difference between quality marketing and general marketing. Effective marketing is a key reason to hire a business broker to sell your business.
At Synergy Business Brokers, we pride ourselves on investing more in our marketing than most business brokers. We do this because we seek out qualified businesses to sell and qualified buyers for your business. It takes a lot of contacts to get the right match between buyers and sellers. This results in both buyer and seller being happy with the sale of your business.
5. Find The Most Qualified Buyer For Your Business
As mentioned above, we seek to find the most qualified buyer for your business. Many people shop around for acquisition opportunities. The tire kickers, as we call them. They typically will underbid your business and then try to re-sell it for profit, or they are completely unaware of your business’s functionality and will lead it to fail quickly.
We want you to be happy with the sale of your business, so we find qualified buyers to make the transaction beneficial for both parties.
6. Assist The Buyer In Getting Prequalified For A Business Loan
Many buyers need or want to get a loan to afford to purchase your business. You need them to get a loan, so you get paid when they buy your business. An advantage to having a business broker manage the sale of your business is we can help get your buyer get prequalified, and we are connected with trusted loan providers who give us feedback on the viability of a specific buyer being able to get funding for your business.
7. Be A Mediator Between You And The Buyer
When you start discussing the sale of your business with a buyer, you want someone who knows your business and can act as a mediator between the two parties. In our position, we provide a large number of benefits because we can view your business without emotion. This will help keep the negotiations on track. Our experience managing the sale of different businesses will also allow us to provide insight neither you nor the buyer has on the transaction.
For instance, say a buyer wishes for you to remain part of the business to make sure the transition occurs effectively. There is additional paperwork and financial implications to adding this to the contract of sale. This is an extremely common situation we have managed many times. We can also offer solutions we have seen success with in the past when both buyer and seller pose different scenarios.
8. Manage The Negotiation Of Sale
Some business owners do not want to negotiate with the buyer. Sometimes they are unable due to availability, or they do not feel they are able to because of the emotions in selling their business. No matter the case, we can work with you and the buyer to make the sale complete.
We can determine the best course of action with you and then negotiate with the buyer. We will then present the offer letter, and you can approve it, or we can discuss certain changes that you would like to be made. After an offer letter outlines the terms of the deal. The buyer’s and sellers’ attorneys will need to negotiate what goes into a purchase agreement. We can help resolve disputes with the attorneys with our knowledge of what is customary and what deviates from the norm.
9. Provide Guidance In The Most Effective Succession Plan
We mentioned a scenario where you might remain as an employee at your business for a time to make sure the transfer is successful. A business broker can provide guidance on how transitions within different industries normally take form as well as effective transition strategies. Then those strategies and steps can be written clearly within your contract.
10. Manage The Paperwork Involved In The Sale Of Your Business
There is a lot of paperwork involved with selling your business. Make sure it is all filled out, organized, and managed correctly when you hire a business broker to manage the sale of your business.
- Due Diligence & Purchase Agreement: This is the key area of paperwork that will need to be managed and organized. Often this can be handled electronically to allow things to go more smoothly. This will then be used by the attorney who will make the sale of your business official.
- Attorney: If you don’t have an attorney, business brokers can recommend some that are experienced in business for sale transactions.
- Taxes: Knowing the taxes on the profits of your business sale will help you in planning out your future. If your sale of the business is your retirement, you will want to know how much money you are retiring with. Business Brokers can recommend accountants that can provide you with guidance on this.
11. To Answer The Unknowns Most Business Owners Have About Selling Their Business
In a survey done of business owners looking to sell their businesses, it was found a wide range of owners did not have access to key information needed to sell their business effectively. More than half of the business owners had not given thought to their succession plan. More than 88% didn’t have a written transition plan, and many of them did not have plans for estates or partnerships.
Ask yourself, will my business succeed if I were to be hospitalized for a year? If the answer is no, you will need a business broker to help advise you on the succession of your business through the business sale process.
12. To Sell Your Business
A great reason and the only reason to hire a business broker is to sell your business. This is our most important point. Some business owners decide to invest in the listing sites and try to sell their business themselves. Most of these business owners fail at selling their business.
What happens if you do not sell your business? First, you are unable to retire or leave your position. When you start investing a large portion of your time into selling your business, your business will inevitably suffer because of you not being fully present. Second, the business will suffer as a whole, and the value of your business will decline as well. This will make it even more difficult to sell.
While you may be able to sell your business on your own, the likelihood of your business selling drastically increases when you sell your business through a business broker. Make sure you are not your own business’s downfall and sell your business effectively with a business broker so that you can retire effectively.
Reasons To Hire Synergy Business Brokers To Sell Your Business
There are many reasons to hire Synergy Business Brokers to sell your business. Here a just a few:
- We have years of professional brokerage experience.
- No fee until your business is sold.
- Our process is designed around providing you with the best buyers possible.
- We invest more in our marketing than other business brokers.
Learn more about us and how we can help sell your business. Our focus is on selling companies with annual revenue of $700,000 to $70 Million+ in technology, the healthcare industry, wholesale/distribution, manufacturing, services, construction businesses, transportation, and more.
We sell companies in NY, CT, NJ, MA, PA, MD, VA, DC, TX, NH, LA, OH, and throughout the US. For a confidential consultation, please contact us at (888) 750-5950 or [email protected]. Or you can fill out our seller registration form at Seller Registration.