Selling a business is rarely easy, and some owners suffer avoidable losses when trying to market their business without professional assistance. In most instances, working with a business broker ends up netting the seller more money than they would normally see when attempting to sell a business themselves. So, just what does a business broker do to facilitate a sale?
Objectivity
A significant issue facing sellers is allowing their feelings and emotions to govern the sale. Owners likely spent years building their businesses and find it difficult to look at the sale from an investor’s standpoint. Brokers don’t have a sentimental attachment to the business and look at the sale pragmatically. That allows the expert business brokers to be more realistic about the sale options and how to proceed.
A Professional Network
Selling a business requires a team of experts, including an attorney, accountant, appraiser, and lender. Each member of the team is critical to the success of a sale. Of course, a seller could attempt to assemble a team without professional guidance from a broker, but that’s typically more difficult than it may seem at first glance. Brokers have already formed relationships with numerous experts that sellers need, and the team is tailored to meet the needs of individual sellers.
Attract and Screen Potential Buyers
Sellers need to attract potential purchasers when marketing a business. Again, that process is generally more complicated than most people believe. While some potential buyers may seem like good prospects, not all can complete the sale. Brokers work with prospective buyers to ensure they’re qualified to make a purchase before sharing a seller’s important company information with them.
Paperwork Preparation Throughout the Sale Process
Selling a business requires a great deal of paperwork. Brokers work closely with sellers to prepare the necessary records before marketing. During the sales process, considerably more documents will be required, as potential buyers need to see the history of the business, current and future business plans, and other paperwork. Sellers routinely find themselves scrambling to gather needed documentation when attempting to navigate a sale without a broker.
Negotiating Skills
Once a potential purchaser is found, significant negotiations are generally required before a sales agreement is reached. Again, emotions must be excluded from the process, which means most sellers need professional help when negotiating an agreement. Both buyers and sellers need pragmatic guidance during the sale to ensure everyone is adequately protected.
Obtaining the Highest Possible Net
Remember that the ultimate objective of a sale is to obtain the highest return on investment possible. Brokers work with the seller and the entire marketing team to achieve that goal. The seller’s interests are always top of mind during the negotiations, and the nuances of the sale agreement are reviewed carefully to ensure all bases are covered.
Start Planning Your Sale Today
If you’re considering selling a business soon, now is the time to start planning. Putting a carefully crafted plan into action takes time, and top business brokers encourage sellers to begin the sale process as far ahead as possible to ensure all necessary preparations are made. The first step in the process is to contact a business broker for advice. From that point, the planning and actual sale process can move forward once preparations are completed.
