A business broker can assist in making sure that you maximize the return on your business sale. They understand what business buyers look for when they review business for sale opportunities.
You need to select a business broker that will confidentially market your business so your employees, customers, and suppliers do not know that the business is for sale. Experience will save you time and money when selling your business. A good business brokerage firm will weed out tire kickers while you continue to operate your business as usual.
You want to make sure the business broker has a marketing program to confidentially maximize your exposure to potential buyers. Understanding the importance of maintaining confidentiality through the business sale process and having experience knowing how to prepare the business for sale is invaluable. The company needs to have success working with the seller and buyer transaction teams (management, attorneys, and accountants) to resolve any open issues and consummate the transaction in a timely fashion.
A business broker will prepare and package the company through a series of profiles to share with buyer prospect the right amount of information at the right time. A detailed profile is provided to a buyer which answers many questions that a buyer may want to know when evaluating your business for sale opportunity. When we are selling a business, we work with the business owner to complete an in-depth questionnaire that extracts many of the answers to questions that we know buyers will ask. Our detailed profile covers everything from the company history, product/service breakdowns, employee information, geography covered, facility information, customer/supplier information, industry and competition information, equipment and inventory details, business highlights and growth opportunities to just name a few. It also includes financial information.
The business brokerage firm should require that the business is properly priced prior to marketing the business for sale. They either have the skill set to complete or choose to outsource to a third-party provider, an objective opinion of value. Having a baseline understanding of business value is important before ever putting the company on the market. It will help make sure that the business is priced correctly so that you attract the most number of prospects but don't leave money on the table by under pricing or ask too much. An overpriced business does not sell. Someone can tell you your business is worth an inflated amount just to get your business listing but a true professional will let the data and market speak for itself.
Some of the other things that a business broker can provide when selling a business is experience. This experience comes from understanding the market and knowing small business deal structuring. Business brokers are able to provide a buffer between buyer and seller to help address the needs from both parties. Business sales are unique to most objects that are being sold. The post-sale transition is a very important aspect so having a seller that is satisfied with the amount they are getting for the business is better than a buyer squeezing every last dime during negotiations. Price is not the only part of a transaction that needs to be negotiated. Terms can include payment amounts and time-frames (if seller financing), earn-outs, employment contracts, non-compete agreements, assets included or excluded in the deal, training periods, money held in escrow, and other terms. It is important that a person in the middle has experience structuring these deals to help facilitate a negotiation that will be viewed as fair from both the buyer and seller perspectives. A satisfied buyer and satisfied seller leads to a successful transition of business ownership.
sell your business and have offices to conveniently provide an environment to confidentially meet with prospective buyers. They should belong to the trade organizations such as the International Business Brokers Association (IBBA).