Are you considering selling your business in 2023 or beyond?
If so, you may be wondering if it’s worth using a business broker to help with the sale. Here are three good reasons to use a broker when selling your business:
1. An experienced business broker can show you how to maximize the value of your business.
2. A business broker can save you time and stress by managing the sale process from start to finish.
3. A business broker who specializes in working with business owners to sell their business can act as a buffer between the owner and potential buyers, helping to keep the process as smooth and stress-free as possible.
4. One of the most important things a good business broker brings to the table is his or her contacts. They will know industry professionals that can help to facilitate the entire process. Professionals like good business attorneys, commercial or residential realtors, CPAs and bookkeepers, contractors, and more.
If you’re thinking of selling your business in the near future, working with a business broker is a smart move.
Decide if using a broker is the right choice for you by considering the pros and cons
Before deciding whether or not to use a business broker to sell your business, it’s important to consider both the pros and cons of using one. On the pro side, a big advantage of using a business broker is that they are experts in business evaluations. Using a business broker will ensure that you receive a fair market price for your business. They will also help you avoid making expensive negotiating mistakes. They have access to industry data and experience that most business owners do not have access to or even know exists. Knowledge is power. Their access to information allows them to spot trends and understand best practices in the sale of similar businesses in your industry.
Using a broker requires additional costs such as commissions and fees, which may cut into your profits. However, by fairly pricing the business, bringing in the right professionals, and facilitating the process, a good broker more than earns their money. Ultimately, using a business broker is usually, but not always, the right choice for everyone when selling their business. Your unique situation should be evaluated to determine if using a broker is beneficial for you or if selling it yourself could lead to better results. For most businesses, using a broker to help with the sale of a business is a good decision.
Choose a broker that fits your needs by doing your research and asking for referrals
When it comes to finding the right broker, there are many factors to consider. The most important criteria is referrals, as brokers who have a good track record with past transactions will generally be more reliable and knowledgeable. It’s also important to do your own research in order to determine which brokers have the experience and integrity required for selling your business, as well as a deep knowledge of the local market that can prove invaluable in negotiations.
You should ask for other client referrals, successes, and reputations, and understand their fee structures to ensure that there is a good fit for your needs. At the end of the day, referrals are often still one of the best ways to find a great broker who understands your needs.
Work with your broker to prepare your business for sale and get the best price possible
Selling a business is an important and complex process that requires significant preparation and sound advice. Working with an experienced business broker can help ensure a successful sale at the highest possible price. They will offer tailored advice on preparing your business for sale, helping you assess its value, and identify qualified buyers.
Confidentiality is crucial when divesting a business, so working with a broker allows you to share relevant information without exposing the details of your business to potential buyers. Your business broker can also provide guidance on financial reporting and prepare documents such as marketing materials or contract templates for use in the sales process. With their knowledge and experience of business divestment, brokers can help you achieve maximum value for your business transaction. When selling a business, it pays to work with your broker every step of the way to ensure you get the best price possible.
If you are considering selling your business this year or in a few years, consider reaching out to us and having a no-obligation discussion where we will give you a high-level overview of where your business is now, what we would recommend to get it ready to sell, and some pointers to help increase its value. Regardless if you decide to work with us or not, you will come away with valuable information as you explore your options.