Business Brokers: Why Do I Need One?

Being in the business of buying and selling businesses I am often asked by clients if they need a business broker. In my professional opinion I believe it is beneficial to both the buyer and seller to work with a business broker. A business broker possesses knowledge of the whole sales process and can guide you through the steps. A broker will also assist in preparing your business for sale. They will take care of all marketing efforts and negotiations and they also are of great assistance when it comes to closing the sale and transfer of ownership.

Knowledge of the Process

A business broker’s role is to act as an intermediary between buyer and seller. A business broker is an expert in the process of buying and selling businesses. They can provide you with valuable knowledge and advice throughout the sales process.      

Preparing Your Business

Preparing your business for sales is the initial step in the sales process. A business broker can advise what documents to have ready to present to potential buyers. They can also advise you on prepping the facility itself including what needs to be cleaned, fixed or updated so that your business is comparable to other businesses for sale in your market. Being made aware of the competition will be useful in establishing a price.

Being prepared not only expedites the sales process but reflects professionalism to potential buyers.  

Marketing

The greatest advantage of working with a business broker is that they will take care of all marketing aspects of the sale of your business. They have the resources to professionally market your business. Finding the right buyer takes time especially if you list it yourself and wait around for the right buyer to come along. They will find you qualified buyers and get your business sold in a timely manner. You won’t have to waste time dealing with unqualified buyers. From a buyers stand point, you may search day and night and overlook a potential listing that fits your needs just because the seller didn’t promote their business properly.

Negotiation

Negotiation is difficult thing. Sellers want the largest return on their investment whereas buyers want to get more for less. Disagreements and failure to negotiate correctly or compromise can blow a deal. A business broker takes care of the entire negotiation process for you.  

Closing the Sale and the Transition of Ownership

As far as closing the sale is concerned, a business broker knows what needs to be done to close the deal and handle the transition of ownership.  They will check that contracts are written correctly and that other paperwork, legal documents and license transfers are taken care of properly.