A good business broker is vital in the sale of a business. A business broker acts on your behalf and can successfully guide and execute the sale of your business.
1. Confidentiality Business Brokers specialize in confidentiality. Every business they sell is a confidential transaction. They make their living by keeping business sales confidential. A broker acts on your behalf allowing you to remain anonymous. It’s important to maintain confidentiality. This is particularly important if you do not wish your employees, banks or clients to find out prematurely that you are planning to sell. Employees may become worried about the security of their employment and clients may become concerned about quality and service. Using a broker ensures confidentiality.
2. A Broker has Experience
A business broker has the experience to handle the sale of your business in an efficient and professional manner. They know the procedures, the forms required and the proper methodology to protect you during the sale process. An experienced business broker who has spent a number of years developing an understanding of the current market and acquisition process can be invaluable in helping you sell your business.
3. A Broker knows how to Market your Business
A Business Profile and/or a Confidential Business Review are tools that a broker uses when promoting the sale of your business. A Business Profile is a single page marketing piece and its purpose is to present all the important details about your business, its basic financials, your facilities, your employees and an upbeat verbal description about your business. It is easy to read, in plain language. The elements of a Confidential Business Review are more detailed and similar to what you might find in a business plan that is prepared for a bank.
4. A Broker already has many Potential Buyers
Your broker and the other brokers in the brokerage will have thousands of buyers in queue which means your broker will be able to find those interested in purchasing a business like yours. These buyers are financially and operationally capable of buying your business. You want to make sure that those who are going to be looking over proprietary information about your business are capable of purchasing it and are seriously interested.
5. A Broker lets you Maintain a “Business as Usual” Mindset
Nationwide it typically takes 6-7 months to sell a business, but it can take up to a year. You will want to get the best price possible for your company, and that means your business has to continue to function as usual. Maintaining the status quo helps make sure that employees feel secure and don’t contemplate leaving, and that clients know service and quality will be maintained. If a business is for sale, it is especially important to make sure that everything continues in the same efficient manner.
