Why you need a business broker to sell your business.

Why you need a business broker to sell your business.

Would you hang this sign outside your business?

Many business owners feel that they are capable of personally selling their business. They have spent their entire lives building it. Who knows the business better than they do? While it is more than likely that the business owner knows more about the business, they usually have no idea how to value it and will either undervalue or grossly overprice it. A good business broker knows how to value the business, market the business and how to manage the sale.  What can a business broker do for you?

Focus

Hiring a broker allows you to focus on managing your business. If you are simultaneously running your business (already a fulltime job) and managing the sale of your business, it is more than likely you will not to be able to devote your full attention to either. A reduction in earnings is going to result in a reduction in the sales price. 

Time

Preparing marketing materials and financial statements takes time. Dealing with buyers takes time. It is not unusual for a broker to field in excess of 20 inquiries for a quality business. While there are quite a few tire kickers out there, many buyers are astute and will ask detailed & lengthy questions about the business. Do you have time to spend hourson the phone educating them about your business and qualifying them financially? 

Buyers

As we like to say, we have more qualified buyers looking for good businesses, than we have good businesses for sale. A broker has dozens of financially pre-qualified buyers who are looking for a business with a strong operating history and promising outlook.  A broker most likely knows who is financially capable & understands the operations and growth potential of your business. 

Confidentiality

The majority of business owners will want to keep the sale confidential. Do you want your employees, vendors, customers or competitors to know you are for sale? It is virtually impossible to maintain confidentiality when you have potential buyers calling for information or visiting your business. A broker can protect your identity while marketing the business.

Emotion

No doubt selling your life’s work is an emotional process. The process will be stressful and tensions will run high. A good broker can work to diffuse those tensions. You will need an intermediary to run interference for you and handle all of the insignificant requests and only engage your time when there is a meaningful question.

Financing & Deal Structure

A broker has contacts at a number of financing sources that are eager to fund the purchase of good businesses. The broker knows which one is right for your business. When necessary your broker can recommend any number of professional advisors such as CPAs, business attorneys and financial advisors to assist and advise you in the process. Your broker can also work to help structure a deal that is a win-win for both the buyer and the seller.

 

If you are considering selling your business now or in the near future Transworld Business Advisors of Monmouth County is confident we can provide the level of service you deserve when contemplating the sale of your life's work. If you are interested in a free consultation please call us at (732) 741-7024 or email mvacca@tworld.com