Selling your company is a long, tedious, and stressful experience. Doing it on your own is very difficult. Accepting help, however, can assist in making the process go faster.
Your confidentiality is also kept. A broker contacts only buyers you approve by showing buyers a blind profile. The profile hides the name of your company, but shows all other essential information.
Keeping confidentiality throughout the process is important. If employees and customers see you are selling, they may leave, never to return again.
A broker helps you locate many buyers, which may provide you with an accurate value for your company. There are many different calculations to use, but ultimately it boils down to what someone is willing to pay.
What Does a Broker Do?
Brokers help you greatly streamline the process of selling a business. If you are a buyer, keep in mind commissions are almost always charged to sellers.
For sellers, remember that a good broker will spend extensive time trying to understand your company. He or she will help you recalculate your financials so profit is maximized. Maximum profit gives you better resale value.
You can also receive high-quality information from these professionals. Talking with a buyer may result in you not being able to ask questions you would like.
These professionals also help make your sale legal. They know what you are legally required to disclose in a variety of documents.
He or she should also possess most documents necessary to execute a sale or purchase. This means the expensive services of a lawyer can be avoided.
A great broker helps you receive much more money for your sale, even after including his fees. He or she creates a win-win-win among you, the seller or buyer, and him or her self.
How to Select a Broker
Selecting a broker is just like purchasing a certain brand for your favorite product. You know multiple companies offer the product.
What do you do? You investigate multiple sources. Interview each one you may work with - they typically offer free consultations. Ask them what their fees and commission are.
Work with the one with whom you see eye-to-eye and trust the most. You don't want someone who is going to push their own agenda on you. That kind of person does not have your best interests in mind.
Examine the person's record. How many sales has he or she made in the past year? How long did it take to make each of those sales?
Ask for references from past transactions. What do these references have to say about the quality of this person's services?
Has the broker ever been sued? Take the time to learn why. Keep in mind that even honest people are sued every once in a while.
Good business brokers help you receive top dollar for your company. And, this includes the commission you may pay them when selling. Like anything, if you think it through carefully, you can reap great benefits down the road.
About the Author
This Wiki was written by Andy White, CEO of Biz Trader .