If you’re in the process of selling a business, you may have already experienced the inevitable stress and tedious process of finding a buyer. This hassle is, of course, on top of running the business in the interim and your other affairs, as well. Before taking the reins and going the complete DIY route, bear in mind that there are more sensible options, particularly if your business has many financial and legal obligations that may require a professional team to completely ensure that you’re not affected in the long run.
That’s where those who are looking to sell their business can use the services of a qualified business broker to circumvent these problems. In this article, we’ll take a look at three major benefits of utilizing the services of a business broker.
Nothing can create more problems with selling a business than putting it up for sale. With employees willing to jump ship and customers avoiding your business with the misunderstanding that something may be deeply wrong about your business, keeping your sale under wraps is paramount to selling your business for the highest price.
That’s where the services of a professional business broker can really make the difference in your business’ sale. Business brokers can lead sale negotiations to a number of buyers with various interest levels without tying your identity to the business. Part of this is ensuring that potential buyers sign an NDA (non-disclosure agreement) before revealing the exact name and location of your company. Because of these precautions for confidentiality, unqualified buyers and competitors can be prevented from spreading the word.
Another key benefit of using a top business broker is that they can save time and make the selling process more efficient by only working with qualified buyers simultaneously. Because business brokers have the experience and tested knowledge to determine if a buyer is showing a real interest in your type of business, they cut out the hassle and can create multiple competitive offers. This helps raise the perceived value of your business by creating “buyer tension”, much like an auction, where buyers compete to purchase your business so that they don’t miss out on a desired opportunity.
Because a business broker is less attached to your business, they are able to leverage this towards getting the best deals when it comes time to negotiate a fair price for both you and the buyer. And while you may pride yourself on getting the best price when it comes to your business’ needs, you may not be aware of what concessions you can gain in negotiations or what the fair market value of your business actually is. Considering that many business brokers work with other local experts–including real estate agents, attorneys, accountants, and more–business brokers can pull from their knowledge base to help buyers negotiate their introductory offers and come to a reasonable offer for all parties.