Business owners have skills and experience in various facets of running a business. As the experts in their business, many think they can handle everything involved in selling the business. To put it simply, they can’t. Hands down, the best thing an owner can do for their business is to enlist a qualified business broker when they decide to sell. A qualified business broker will help get a better deal faster with a higher final sale price and less stress for the owner.
Here is how they do it.
Certified business brokers undergo extensive education, both to earn their certification and as a requirement for maintaining it. Business brokers are better able to do things like
- Accurately value a business.
- Identify changes that will help improve the value of the business.
- Set the right price that takes into account multiple factors including the current market, regional influences, and the true value of the business.
In order to set the asking price, business brokers take many factors into account and complete a specialized calculation. This process makes it easy for buyers to understand how the asking price was determined and helps them see the value in paying that amount for the business. Buying and selling a business can be emotional. The broker opinion of value is logical and follows international standards taking into account the industry and the local economy.
There are many moving parts when it comes to selling a business and it is akin to a full-time job. Business owners are busy enough and will not have the time to manage the sale process in a timely manner. Here are just a few of the tasks that a business broker will handle:
- The business valuation process,
- Identifying and facilitating tasks to be done before listing the business,
- Preparing marketing materials,
- Launching and managing the marketing plan,
- Buyer screening,
- Initial buyer interviews,
- Ensuring potential buyers have liquid cash available to finance the purchase,
- Arranging showings,
- Negotiating the deal,
- Coordinating the preparation of sale documents by the lawyers
- Managing the various aspects of due diligence,
- Managing timely communication across all involved parties, and
- Closing the deal.
If even just one of these aspects of the business for sale transaction falls off track, the entire deal can be jeopardized.
Handling involved parties
Selling a business is never a simple transaction that is between just a buyer and a seller. In addition to the buyer and the seller, there can be lawyers, accountants, business partners, investors, bank representatives, landlords, buyer agents, and family members involved. That is a lot of individuals to keep moving towards the finish line. It is not uncommon for personality conflicts and misunderstandings to arise during a poorly managed transaction. Left unchecked, these can derail a business for sale transaction and leave involved parties feeling frustrated, angry, and unwilling to move forward. A qualified business broker can help all parties move forward together by
- Keeping everyone up to date,
- Checking in with individual parties on a regular basis,
- Being available to field questions and concerns in a timely manner,
- Acting as a point of contact for all parties,
- Keeping track of each individual’s roles and responsibilities throughout the process, and
- Holding all parties accountable.
In addition, a great business broker will continually finesse the process by quickly diffusing negative emotions and keeping all parties focused on successfully completing the transaction.
A qualified business broker is one of the best assets any business owner has when they decide to sell their business. Throughout the past few decades, the standards for the industry have continued to grow and brokers have consistently demonstrated the benefits their expertise can provide.
If you are getting ready to sell your business, contact Acuity Business Broker to learn even more about how we can help.