Benefits of Hiring a Broker to Sell Your Business
Is now the right time to sell your business? There are many reasons you’d want to sell your business, but even though your reasoning may be valid, it doesn’t mean it’s the best time to sell. Why? Well, you’d want to fetch the price you deserve for all your hard work, of course.
The feeling of parting with a business that you’ve poured your life into is not an easy situation to handle. You want to know that the person who’s taking over will adopt and continue the values you’ve worked so hard to instil in your business and that you’re getting a fair price for all your hard work. Our advice is don’t go through it alone; have a good business broker in your corner.
What is a Business Broker?
Business brokers are individuals or corporations that assist other businesses with purchases, sales, or mergers of their businesses and everything related to them. They’ll work through the value of your business or the business you’re looking to buy or partner with, highlight any red flags and the benefits of the purchase and advise you on any changes you need to make in the process.
Why should you take your business sale to a broker?
Many people avoid hiring a business broker because they think they’re just in it for the commission. Good brokers, like Lloyds business brokers, are highly trained in how to sell business and what to look out for.
Like a qualified Ferrari technician would notice issues with an engine, business brokers have a keen eye for noticing red flags in business mergers or sales. So, if you want things done right, it would be best to have a trusted business broker in your corner.
The advantages of using a business broker to sell your business
Not convinced yet? Maybe this will sway you. Here are the advantages of hiring a business broker to help sell your business:
- Business brokers help improve the appearance of the business to potential buyers
- Business brokers know what’s selling in the market and what isn’t. Thus, they’ll be able to help you organise your business in a way that makes it more appealing to potential buyers. As a result, you might get a better price for your business.
- They’ll help you sort out problems before putting the business on the market
- Certain issues with a business might cause potential buyers to avoid it. Brokers will sniff out these issues and provide you with a solution to correct them to ensure your business gains traction when it goes to market.
- They review your operations
- Business brokers will also review how your business ticks. A potential buyer doesn’t want to have to buy a business that’s barely functioning unless the potential profits are significant. A good business broker would be able to review your operations and make suggestions on what should change to make your business more profitable and easier to sell.
- They’ll help you get certified
- A broker can help you get a certified business valuation from an accredited appraiser. This appraiser looks at your financial data and provides an unbiased report on your business’s true value.
- Buyers like certified valuations because they trust the process and the results. The broker can use this appraisal, along with other factors, to negotiate the sale price. Your broker will also look at sales of similar businesses, industry trends, and market conditions. Their main goal is to make sure you get the best possible price for your business.
- They’ll find interested buyers
- Once your business is ready to sell, brokers can put their feelers out to prospective investors who might want to buy it. Often, business brokers have a clientele who trust them for investment opportunities. Having this connection could mean a smoother sale.
- They do the due diligence
- Selling a business involves sifting through a lot of paperwork to do your due diligence. With a broker, the onus isn’t fully on you. Business brokers know what paperwork is needed to get the due diligence done and what’s expected by the Australian Government as far as regulations.
- They’ll negotiate for the best price
- Negotiating the price of your business can be challenging, especially since you’ve invested more than just money into it. A business broker will help you set a realistic price for your business and negotiate with potential buyers on your behalf so that you can get that price.
Final Thoughts
Selling a business can get complicated quickly. Having a business broker in your corner can make the process much simpler. From getting you the right price for your business to ensuring all your paperwork is done properly, they’ll provide the smoothest transition for your sale. That’s why going with a trusted broker is so beneficial; they’re not just in it to flip a business for commission. They’ll partner with your vision and ensure they get you a buyer who’ll do the same.
