Why a Business Broker will get you the best result when selling
In our digital era, we can do almost anything online. Including buying and selling businesses. We say buyer (and seller) beware. Online brokerages promise to sell your business at a cut rate, simply for posting your ad with them. Other brokerages provide glossy testimonials from satisfied customers about how quick the selling process was. Too good to be true? We think so! Get specialised advice. Aside from the reduced stress levels, we present 5 reasons as to why you get extra value for your hard earned when using a business broking firm.
1. Getting ready for market
When selling your house, presentation is vital. While the real estate and business market are worlds apart, this also holds true to selling businesses. Ask your broker where you would best be placed to invest some money in getting your business ready for market!
2. Tailored marketing plan
Your marketing plan will depend on industry, size and your goals. Usually an advertising spend will be required to get your business ‘out there’. A broker will provide professional advice as to what you should say in your ads, on what platforms your ads should appear and who should be targeted.
3. Access to genuine purchasers, not just curious cats!
Brokers who have been in business for years (ideally decades) have built up a network of return customers, including first time punters turned business people, serial entrepreneurs and overseas investors. Take advantage of their database of people looking for the right opportunity. The sale of business generates much curiosity in communities. If you market openly and directly, you run the risk of showing simply curious people with no intention to buy through your business. Your broker will eliminate the guess-work, differentiating between time-wasters and genuinely interested parties. 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. Your broker will be unemotional about this process and just strive for the best final price.
4. Correct pricing
Your broker will make sure you don’t undersell and will put accurate and realistic pricing in correspondence and ads, making sure to attract only the right buyers. Your broker will withhold the name and financials of your business until purchasers show sufficient interest, which protects your privacy. 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. Planning ahead
Your business has been years in the making, so plan ahead for it’s sale. Your broker will talk you through succession planning, help you plan the management of assets and your exit. The process can get stressful and the want to sell quickly can seem appealing, but your broker will help stick to the ‘game plan’. This is the time to capitalise on all of the hard work you’ve invested, so don’t settle for a quick, reduced sale price.
6. Support after settlement
As the sale progresses, you may have to make decisions that could help the sale along smoothly, like retaining staff or stock and equipment, or dealing with solicitors. Your broker is used to this process and will guide you through this process. Your broker isn’t paid until the sale settles, so it is in their best interest to ensure everything runs to schedule, so they’ll be on the lookout for factors that could risk the deal.