07 Mar Why Use a Business Broker?
Buying or Selling?
Q: Why use a Business Broker?
A: Because they add value to the process.
Valuation expertise. An experienced business broker understands the market, has access to statistics on recent sales, and can apply the various methodologies to guide you on the most probable selling price. The owner naturally wants the best possible price, but overprice it too much and serious buyers won’t even look.
Confidentiality. A broker can help maintain confidentiality, identifying the business only to prospective buyers who qualify. Most business owners do not want their staff, customers, or suppliers to know they are considering selling. The broker can secure confidentiality undertakings, screen prospects, and phase the release of information.
Marketing. Not only can the broker advise on preparing the business for sale (see our 10 Commandments) but can also undertake a multi-pronged marketing program to give maximum exposure. Print ads, internet, direct mail, and database marketing combine to produce the best result far more effectively than any owner could manage on an individual basis.
Negotiating. The business broker is a vital advisor to the seller at any stage of the sale transaction. He, or she, is steeped in knowledge about negotiating price, terms, and other key aspects of the sale. From follow-ups in the early stages, to controlling the smooth running of the contract the broker has a role the owners themselves cannot do effectively.
Protection. Business brokers are trained in the legislation and documentation necessary to protect the parties, guard against delays and problems, and avoid the “wrecked” deal.
Fees. Generally the buyer pays no fees and our sellers only pay a success fee if we sell the business on terms and conditions acceptable to them. We do not charge any marketing fees and believe our standard commission is the lowest of the specialist business brokers.
Selling your business yourself? NOT a good idea…