Selling a business can be a time-consuming and often frustrating process. Many business owners have thought about or have even tried selling their business but to no avail. They recognizetheir need for help but are unsure of where to seek said help to support the process of selling their business. There are innumerable tales of the business owner who sold their business for far less than they should have or they tried selling their business and encountered obstacle after obstacle. These owners often realize after the fact that working with a business broker could have expedited and?streamlined the business sale process. So what are the are the main benefits of working with a business broker? Following are the five Cs of business brokerage to answer this question.
Confidentiality. When a business owner goes to sell a business, they are immediately faced with a difficult quandary. They need to find a buyer for their business, but they can't let just anyone know that they're selling due to the negative implications (employee distress, customer loss, etc.). By working with a business broker, the identity of the business and owner is protected as buyer inquiries are all directed to the broker by way of a blind profile. This blind profile describes the details of the company without disclosing its identity. It is only when the potential (and vetted) buyer signs a non-disclosure agreement that the broker reveals the identity and more in-depth information related to the business. As a result, neither employees nor customers are aware of the potential sale. Thus, it is business, as usual, all the way through to the sale.
Continuity. After attempting to sell a business, many have commented that the time they invested in trying to sell took away from the time spent operating the business. As a result, profits can decrease, customers become increasingly dissatisfied and the overall reputation of the business can diminish. On average, it takes about six to nine months to sell a business with broker assistance. Without a broker, the process can be much longer and can take the owner completely away from maintaining and growing their business. It is not uncommon for an owner attempting to sell their business, on their own, to burn out and lose a great deal of money in the process. By relying on a broker, the owner can continue to focus on the health and operation of the business and support continued profitability through to the business's sale.
Coverage. By partnering with a business broker, the owner is able to benefit from maximum coverage - i.e. they reap the reward from high exposure to a large network of potential buyers. Business brokers possess the resources and tools needed to generate a good amount of buyer interest as well as maximize the buyer pool. For example, in working with a broker from Transworld, one is able to leverage a network which includes over 100 plus Transworld brokerage firms and over 500 Transworld brokers nationwide. As a result, an owner can expect buyers coming from any one of the fifty states and possibly even outside the states.
Cash Value. Marketing your business to the largest possible buyer pool, by way of a business broker, has another benefit. That benefit is generating multiple potential offers, which is more likely to give a business owner maximum value in return for their business. Business brokers are practiced in how to best portray and highlight your business to interest potential buyers. They also have a high amount of experience in maximizing the value and return on that value to the owner.
Closing. The business broker's primary function is to facilitate and close on the sale of a business. Because of this, they are well aware of the potential roadblocks and factors that can cause a deal to unravel. Having the experience of working closely with bankers, attorneys, financial consultants in addition to buyers and sellers, they are able to foresee issues before they arise and resolve them quickly and efficiently. This results in a higher likelihood of the owner being able to sell their business and receive a more favorable deal than if they were to try to sell themselves.
In summary working with a business broker preserves confidentiality, allows the owner to support business continuity, provides maximum exposure to potential buyers, maximizes the return upon sale and increases the likelihood of closing. Deciding to sell a business can be one of the most important and difficult life decisions a business owner makes. There are intricate details and innumerable pitfalls involved in the process and it is always best to consult a professional in this situation.
For more information on the benefits of working with a broker or to discuss the sale of your business schedule a free consultation!
Cameron Pourhassanian a Business Broker with Transworld, brings years of experience in the technology industry and sales management to the table. His experience stems from managing technology solutions for national companies and large corporations as well as small to medium sized businesses. Having had experience in varying industries spanning from nursing homes and medical facilities to manufacturing and retail, Cameron understands the challenges that business owners face and loves seeing them grow and succeed. He now enjoys helping current and prospective business owners navigate the often difficult process of buying, selling, and growing businesses via acquisition.