Building up your own business takes a lot of time and effort. So, when it comes to selling it, you want to make the most of its value and ensure it is priced at the right bracket as well as advertised in the right marketplace.
With everything else on your plate, there are benefits to using the professionals and working with a business finance broker to help maximise the sales price of your company.
The Role of the Business Broker
Their primary remit is to sell businesses, so this means they have the time and resources to assess and set a fair price on your business as well as target the right customers. This is a really big benefit because you can continue to run the business while the business broker gets on with the job of selling it. They are also instrumental in pulling together all the relevant documentation needed to get the company ready for sale. This means getting all the relevant accounts ready as part of the buyer’s pack, along with documentation related to any fixed assets or property. Linking up with your business finance broker is important, particularly if you have any commercial or business loans on the company.
Ensuring you don’t under or oversell the company and establishing the price is a key part of a broker’s role. Putting this together in a professional package that appeals to the right buyer is a skill and knowledge brokers have – making a difference between attracting a potential buyer or no interest at all. They are also skilled at putting together the right information, in a factual but attractive presentation to enable vendors to make informed decisions about putting in an offer.
Time is money and having to answer enquiries or field off those interested parties who are not serious buyers, is time consuming. A business broker can review offers of interest or speculative calls, filtering out time wasters and presenting the serious cases of interest to you for review and discussion. A business broker can be the professional “voice” of the company but also equally ensure the potential buyer is well treated (they will be a potential reference for the broker moving forward). A business broker has to remain neutral and impartial and treat everyone fairly and transparently and will take a lot of pressure away from the business owner.
Support With Negotiations
You can be the shrewdest business operator in your own field but when it comes to selling something that very probably you have built up from the ground, this is a difficult area to negotiate and remain impartial. The business broker knows the value of the business and what you are willing to accept, they are also privy to information from the vendor about what price they will offer. Getting the best deal for both of you is a skill that a broker can manage well. Often, deals take time and effort as it consists of following up on offers and conversations.
Marketing the Company
As business brokers have expertise in their field, if a specialist business opportunity arises, they are able not only to help with the evaluation of the company but know where they can target the marketing along with a unique marketing plan to help sell the company. Another area to consider is around the different legal requirements placed on businesses linked to the sector they fall under or the state or territory in which they are located. Potential buyers in the relevant geographical areas are then presented with the right facts to help them make an informed choice on their potential transaction.
Business brokers also have an extensive network of contacts that it would take you many years to build up so they can begin bringing your company in front of any interested parties very quickly. They will also use a variety of marketing tools and techniques to secure a target audience whereas unless you have the expertise, you may end up wasting money advertising the company to the wrong market.
Remember to approach your local professionals when selling your business as it could mean the difference between a successful sale or an expensive waste of time.