If you’re contemplating a sale in the next year or two, you might hope that a buyer will approach you with a competitive offer. Or maybe you intend to oversee the deal process yourself. After all, you sell products and services at work every day, so how much more difficult could selling your business be?
Think again. If you’re contemplating a sale, a business broker is more than just a nice thing to have. They’re mandatory because of the critical role they play in ensuring the deal process is successful from start to finish. Here are four reasons you need to abandon your DIY sale plans and hire a business broker.
Access to Better Buyers
Not all buyers are created equal. Some are merely window shoppers looking to source a deal. Others are competitors who want to gain access to trade secrets. And some simply lack the skills and resources necessary to ensure your company succeeds after closing. The right business broker knows how to find buyers, screen them, and then sell the story of your company to the right buyer. Ultimately, value—and sale price—depend on the buyer’s assessment of the company’s value. Find the right buyer, and the rest becomes a lot easier.
More Time to Focus on the Business
It is simply unrealistic to attempt to run a business and sell it at the same time. That’s at least two full-time jobs, and possibly more. One will inevitable suffer, and probably both. You don’t want your company to lose value at the very moment you’re trying to market it. And you certainly don’t want the other party to perceive you as flighty, distracted, and unprofessional. A business broker ensures you have adequate time to oversee business operations while they focus on deal-making for you.
A More Professional Transaction
Many buyers have participated in dozens, and even hundreds, of deals. This gives them a distinct advantage, and rest assured, they’ll use it. A business broker helps level the negotiating table, lending professional credibility to the transaction and showing that you’re serious. You’ll have a better understanding of M&A norms, be able to promptly respond to due diligence requests, and know how to identify when your deal partner is trying to take advantage. Your broker takes emotion out of the process, acting as a confidante, negotiating partner, and manager for the deal.
A Higher Value Transaction
Business brokers add real value to a transaction, resulting in higher sale prices and more favorable deal terms. So don’t let concerns about cost undermine your best interests. Most brokers add much more to the transaction than they take in fees. If you truly value your business and your own economic future, give both the best possible shot at success. Don’t handicap yourself out of the gate by trying to do it all on your own. The buyer will notice, your business will suffer, and the deal may fail before it can even get started.
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