Question: I’ve had my business on the market for a few months and am considering using a Business Broker. What advantages are there to using a business broker as opposed to selling it myself?
Submitted by: Narit
It’s always difficult to answer this question without simply preaching our own services, but we do get it a lot, so I will endeavor to. Working with a business sales agent is no different to working with any other professional services agent. For example, the services of an accountant, real estate agent or a solicitor are services that you could foreseeably undertake yourself, but you simply wouldn’t because you know those service providers will be able to do a better job than yourself. The benefits of engaging these professionals almost always outweighs the investment in their services.
The same is true for business brokers. Doubly true. The breadth of service provided by a good business broker is often surprising when written down. They will include preparation, marketing, appraising, negotiation, confidentiality handling and coordination of the professional services of both buyer and seller to name just a few.
Each of these elements of the business sales process requires training and experience to do well, and in business sales, ‘doing well’ means a higher return for your business sale.
Beyond the obvious services offered by a business broker, what follows are some of the things we feel that a good business broker should offer.
A good business broker:
- Will know how to work with you and prepare you and your business for the sales process. More than anything this is perhaps the single most important contribution a business sales agent can bring to the table.
- Will know how to plan and conduct an effective marketing campaign to generate interest in your business. They will have strategic systems in place designed specifically to identify possible buyers and contact them directly. They will know that simply running a few ads in not enough.
- Will facilitate and assist with all contact between yourself and potential buyers. Having an experienced mediator as well as an expert on business sales on your side of the table is, to put it simply, invaluable.
- Knows that as the business owner, your primary concern when it comes to your business sale should be keeping your business healthy and ready for sale. They will invest time and energy in facilitating this, while they work on the necessary preparation required to sell your business for a good price.
- Will have systems in place to keep you well informed throughout the entire process. Reports and updates should always be readily available to sellers, allowing them to stay in the driver’s seat without having to chase their agent for information.
- Will have at their disposal a large network of professionals and financial advisors. Having immediate access to those resources means that an unforeseen issue can be resolved in a matter of days rather than weeks. When it comes to maintaining momentum, access to these resources is priceless.
And finally, a good business broker will know what to expect. There is no single issue that has not been met and dealt with in the past and that cannot be dealt with in advance of putting the business on the market.
As you can see, the role of a good business broker is far bigger than you may originally have thought. It isn’t simply a matter of finding buyers. Working with a business broker means working with a team that will assist you from start to finish, and work with you to get your business sold quickly for the best possible price- and in the end, that’s the point; to get the best return for all of your hard work.
As I said, it is difficult to answer that question without simply preaching our own services, but I hope that has helped. Thanks for the question!