Whether the market for new businesses is strong or weak, selling yours isn’t an easy task. You will face several hurdles and plenty of uncertainty. A business broker can help you to overcome those hurdles including maintaining discretion, understanding legalities, and performing background checks.
Business Selling Jargon
As a business owner, you already know there are legalities involved in legitimizing your company name and insuring yourself against liability. Real estate, however, is another legal minefield. When you sell your business, there is a lot to learn and perhaps not a lot of time to learn it. You could make a mistake that throws the whole process back several months or causes you to lose money. A business broker knows the legal terminology and can walk you through the process.
Promise of Discretion
You want to keep working and concentrating on the job at hand without clients backing out because they know you are about to sell. This changes attitudes among clients and would-be consumers: will you give your all to a job when it’s your intention to sell the firm? A business broker mediates the sale while maintaining confidentiality and discretion.
This is your business for sale and you want the best price possible for it. That being said, negotiation is a skill which a broker has acquired through experience and training. The broker will treat your firm like his own and do the best job possible to achieve a price both sides can live with. That also takes some of the nervousness out of a process that might be daunting when the owner of a small firm is selling to a larger corporation more accustomed to exchanges of these types.
Negotiations might go deeper, discussing whether to retain certain employees or go through wholesale lay-offs. This could be a deal-breaker for a business person who is intent on ensuring his loyal staff members don’t lose their jobs. Small firms are especially vulnerable in these cases.
Offers can come from unexpected directions, but just because you are selling doesn’t mean any buyer is okay. You might have strict ideas about whom you would like to see taking over the company. Their ethics need to be in line with your own, especially if your firm has been dedicated to fair trade, environmental responsibility, and treating employees with dignity and fairness. It is also possible that proposals are coming from individuals or firms that do not really have the money to see their offer through. They might be preparing to engage you in negotiations prior to revealing their tightened circumstances and the inability to pay their full original offering price. By this time, you are so far into the deal that you will feel tempted to take this lower offer rather than go through the whole process over again.
A business broker will pre-screen potential buyers of your business for sale. He will uncover the background of a buyer and which direction he might take the business once he owns it. His job will involve checking finances to ensure a company really does have the funds to follow through with a purchase.
Hire a Broker
Select a broker with experience handling sales of firms like yours; businesses of much the same size and composition. Choose someone with confidence, dedication, and experience. He will take away a lot of the stress associated with your sale.