You have come to the decision that it is time to sell your business. We understand that a lot of blood, sweat, and tears went into growing it. Furthermore, the decision to sell can come from a multitude of personal and business-driven reasons. That being said, you would not have come to this decision unless you felt like it was the best move for yourself and your business. Now that you’ve made this decision . . . what comes next? The next big decision requires choosing to either move forward with the sale on your own or to hire a broker. There are definite pros and cons to choosing to sell by owner or using a business broker. Below, we have highlighted a few – including the misconceptions.
Pros to Selling by Owner vs. Using a Broker
Saving money is often the first reason most people will give you for selling your business yourself. When you sell yourself, you will save on the fees that must be paid to the broker. However, what they fail to mention is the hours of work that goes into the listing, marketing and negotiating your business. Any fee acquired by your business broker is truly paying for ease and peace of mind. A business broker is skilled in evaluating what the business is worth, has an arsenal of buyers who are worth noting and have extensive knowledge of the negotiating process.
Another pro often listed is the ability to remain in control of your business. Experienced brokers will keep you informed throughout the process so you never feel like you’ve given up control. It may be difficult to consider trusting a stranger to sell your business so Transworld advises you interview your broker before beginning any relationship. Brokers at Transworld Houston understand how important your business is to you. This is precisely why Transworld has gathered the growing list of trusted and approved buyers to streamline the selling process and never let a seller down.
Cons to Selling by Owner vs. Using a Broker
As previously mentioned, a broker is equipped with an incredible arsenal of buyers interested in businesses like yours. With this access, they are able to narrow down the search, weed out the potential problems and help you make the right decision for yourself and your business. This exposure is priceless and often makes the process go more smoothly and quickly than if you were scouting through buyers yourself.
Working with a broker means the confidentiality of your sale is guaranteed. Maintaining confidentiality when selling on your own can be very challenging as you are trying to continue running the business while making and taking calls about the sale. Brokers will make sure you have a neutral, private location where meetings can be held. When you are selling your business, you want to avoid notifying employees and competitors too soon. A broker also serves as the liaison between seller and buyer, therefore, you avoid awkward moments like a potential buyer coming to your place of business and asking an employee, “Excuse me, is this business for sale?” Having the broker be the point of contact avoids any mishaps.
“Closing the Deal”
Brokers work with sellers and buyers every day. It is their job to understand the paperwork and the timelines. Keep in mind that a successful business is more attractive to buyers so it is important that you still run your business while it is on the market. Using a broker means you are not only paying for help, but also peace of mind that the process of selling your business is still moving forward. Missed deadlines can mean broken deals. If you want the assurance that a deal will go through in a timely, legal and professional manner, then a broker is your best bet.
Why You Should Hire a Broker Today
There may be no harm in selling your business yourself, however there are many reasons why brokers are so important. From understanding the process, being experts in your industry and having an arsenal of potential buyers – it is their professional duty to ensure your business is sold. A broker’s job is to ensure you leave the sale satisfied and that your business is left in the right hands.
Call Transworld Business Advisors of Houston today at (281) 769-4277 to schedule a meeting with one of our skilled business brokers. Their expertise will give you peace of mind – and that is priceless! You can also visit Transworld of Houston’s website for resources on selling a business.