Why should I use a business broker to sell my business, surely I can sell it myself… Well potentially yes, but have you tried selling your house with an agent, for example? Whilst you will probably have a good idea of what’s involved and the process as a whole, it’s always beneficial to have an expert on hand to guide you through the unexpected challenges you will undoubtedly face.
You’ve built the business up and now you’re ready to cash in. Exciting times lie ahead. Everyone’s giving you advice on your next move, but are they qualified to tell you what to do? You’ve come this far by yourself, after all, and nobody knows the business better than you, so perhaps you’re the best person to lead the sale, right? Actually, maybe not…
Here’s why you should absolutely enlist the help of a business broker if you’re preparing to sell:
According to the famous line attributed to Albert Einstein, ‘The only source of knowledge is experience’. Ipso facto, brokers are specialists in their field, and are dedicated to helping clients buy and sell. They’re not hobbyists; this is what they do every day. They know the market better than anyone and have probably got buyers on speed dial.
Where would you start if you go it alone? You can’t just list the business on eBay and hope for a bidding war. Ultimately, having an experienced head overseeing everything will limit your risk, ensuring you avoid mistakes. You don’t need to be Albert Einstein to figure that one out.
Getting the right valuation is fundamental to any sale, business or otherwise. Put simply: value yourself too high, you’ll price yourself out of the market; too low and you’ll get caught short.
A good broker can identify where you sit in the marketplace, drawing on knowledge of recent sales, whilst also assessing your cashflow and profit potential. Additionally, they can offer sage advice on how to boost your valuation before putting it up for sale.
The vast amount of paperwork can be prohibitive, but brokers know exactly what needs signing and who to chase. They’re well placed to advise on due diligence procedures, ensuring everything is in order and no hidden surprises scupper sales at the last minute.
Added to the fact that they’re experienced and can provide accurate valuations, your sale will be greatly expedited with a broker on board.
When you’ve decided to sell, it’s essential to keep things quiet. Announcing your intentions could cause instability and derail plans; key staff members could leave, fearing for the company’s future, while competitors could sniff an opportunity to capitalise.
Brokers are past masters at creating one pagers which highlight business potential without giving the game away, finding buyers who are well placed to make a seamless transition.
Ultimately, brokers remove the pressure involved with selling. If you’ve been a success in business, you’ll appreciate the art of delegation, letting the right people get on with tasks that match their skillset. By effectively outsourcing the sale, you’ll be free to focus on maintaining the day-to-day operations, ensuring everything runs smoothly and the business remains in good shape for whomever takes over.
So, do you need a business broker? Yes. You can’t afford not to have one.
If you need any advice or further information on selling your own business, feel free to give us a call on 0845 337 3327 to speak to one of our consultants.