These days you can do just about anything online. There are even websites that will promise to sell your business for you at a cut rate, simply by posting your ad with them. They provide glossy testimonials from satisfied customers about how quickly their business sold. But is it really as easy as that? We don’t think so. You need specialised advice.
Apart from the fact that you are dealing with real people when you use a business broker, there are many reasons why you get extra value for money when you use a business broking firm. Here’s 8 good reasons why a business broker will sell your business faster and increase your return:
1. Correctly Present Your Business
• When selling your house, presentation is vital. It is also important when selling a business, but there are different factors to consider. Find out where you should be investing your time and money on presentation. A little can go a long way!
2. Tailored Marketing
• Get professional advice on what you should say in your ads, where your ads should appear, and how to handle your campaign.
3. Access to a Network of Wealthy, Genuine Purchasers
• A good broker has been in business for years, even decades. They’ve built up a network of return customers, overseas investors, and have a database of people looking for the right opportunity.
• A business broking firm will often have multiple interested parties at any one time. This drives prices upwards: genuinely suited parties in competition with one another are willing to pay more.
• If you market directly, you run the risk of wasting time showing people your business when they have no real intention to buy. Let a broker take out the guess-work.
4. Correct Pricing for Your Business
• A broker will ensure you don’t under-sell.
• A broker will help you to place the correct asking price in your ads, so that you attract genuinely suited buyers, and maximise your asking price.
• Knowing a business’ strengths and weaknesses comes naturally to an experienced broker, whereas you might be biased! Brokers also know what’s happening in the wider market, and how to address fluctuations.
5. Help Planning Ahead
• Your business has been years in the building: plan ahead for its sale. A broker will talk to you about succession planning, give you a strategy to manage your assets, and to exit.
• Most businesses take time to find the right buyer. A broker will help you stick to your ‘game plan’. Don’t be tempted to reduce your price in the hope that you’ll achieve a quicker sale. Remember, this is the time to capitalise on all of the hard work you’ve invested.
6. Sealing the Deal
• A broker is the party who can transfer your business into cash. As the owner, you are probably too “close” to things to negotiate. A broker brings the parties together. A broker understands what might be causing issues (perhaps the purchaser needs finance, or doesn’t understand a clause), and is best placed to see that parties reach agreement and close the deal.
7. Post-settlement Support
• As the sale progresses, the Vendor may have decisions to make that could make the sale move more smoothly (for example, retaining staff, maintaining stock levels or equipment, dealing with solicitors). A broker can guide the Vendor through the sale, step by step.
• A broker doesn’t get paid until the sale settles, so it’s in their interests to ensure everything goes smoothly. They will be on the lookout for factors that could risk the deal (eg a good broker will check that a secure lease is finalised).
8. Reducing Time and Stress
• A broker will take some of the stress out of the process for you, leaving you the peace of mind to continue running the business up until it transfers to the new owner.
• A broker isn’t emotionally invested in the business, and won’t take offence at hearing negative news. Buyers are more comfortable dealing with a party who isn’t emotionally attached.
These days, it is possible to sell your business yourself, but we think it’s a really bad idea. Trust your precious asset with a broker with the experience to close the deal, and achieve the best price with the least amount of worry for you.