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Any
business owner who has sold a business on his or her own will tell you it’s a
long, tedious and stressful process. It
consumes time and distracts you from the day to day operation of the business. When your focus should be on maintaining or
increasing the value of your business, all of your time and energy is directed
to the sale process.
That’s
where an experienced business broker can pay huge dividends. There are many areas where the business
broker expertise pays off:
- Confidentiality. If you as an owner attempt to
sell your own business, that process alone reveals that the business is up
for sale. Employees, customers,
suppliers and bankers all get nervous and competitors look to make a kill. A business broker helps maintain confidentiality by requiring confidentiality agreements from interested parties and releasing the right information at the right time.
- Business
Continuity. Selling
a business is time-consuming for an owner who already is probably wearing
many hats for the company. By
taking on the additional load of selling the business, essential functions
will get less attention and possibly damage to the business. The owner can
maintain a focus on running the business when a broker is working on the
sale.
- Reaching
potential buyers. Business brokers have the tools and
resources to reach the largest possible base of buyers. They then screen
these potential buyers for the wherewithal to support the potential
acquisition.
- Marketing. A business broker can help
present your company in the best light to maximize the sale price. He or she has an understanding of the
key values that buyers are looking for and can assist in identifying
changes that can lead to a better selling price.
- Valuing
your Business. Putting a value on a business is far more difficult and complex than
valuing a house or commercial property.
Every business is different, with hundreds of variables that have
an impact on the value. Business brokers have access to business
transaction databases that can be used as guidelines or reference points.
But the best way for a business owner to truly feel comfortable that he
got the best deal is to have several financially viable parties bidding
for his business, which is much more likely using the resources of a
professional business broker.
- Balance
of Experience. Most corporate buyers have acquired multiple businesses while sellers
usually have only one sale. An
experience business broker can level the playing field for a business
owner making his one and only business sale.
- Closing
a Deal. Since the business broker’s sole
function is to sell the business, there’s a much better chance that a deal
will be closed in less time. The
faster the sale, the lower the risk of employee problems, customer defection
and predatory competition.
Utilizing
the services of an experienced, professional business broker allows the owner
to focus on running the business reducing the risk of business erosion during
the sale process. A sale facilitated by
a business broker helps maximize sales proceeds by involving a large universe
of buyers in a confidential, competitive bidding process.
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