Many small business owners decide to sell their company themselves because they don’t understand what a good broker can do for them. They know why their lawyer and CPA is worth the fees they charge, but they’re not sure why a broker should be paid their commission. So what does a talented brother bring to the table? One key answer is they want to sell your small business and get the most money for you as possible. Here are some other factors a talented broker will bring to the table.
A Confidentiality Agreement – confidentiality is crucial to a successful business transfer. When you sell your small business, you will see that confidentiality is crucial. If word gets out your business is for sale, key personnel start looking for another job and your management structure weakens. When suppliers, vendors and creditors get wind of it, they start tightening up terms. Worse, competitors start spreading the word to your customers and lure them away from you.
All of these issues lower the value of your business and make you vulnerable to buyers’ demands. In many cases, lack of confidentiality can kill a deal. Let’s be realistic – it’s highly difficult to maintain confidentiality when you’re trying to sell your business yourself.
Pre-Qualified Buyers – An owner who decides to sell their business on their own will squander a lot of time and energy on unqualified tire-kickers. A skilled broker knows what questions to ask to determine if a prospective buyer’s is truly able and ready to purchase your business. By eliminating dead ends and wasted time, your broker frees you to stay focused on what you do best – running your business and growing your bottom line.
Marketing Power – Successfully selling your business requires a lot more than listing it on a For-Sale-By-Owner website and waiting for the phone to ring. A successful broker has a private database of qualified buyers actively searching for businesses to purchase. They also have ongoing relationships with other brokers who represent buyers looking for businesses like yours. Having a strong marketing strategy is key when you sell your small business.
Acquisition Loan Assistance – An experienced broker has access to a range of lenders to help expedite the sale of your business. From national, local and regional banks, to private lenders, they’re poised to assist a buyer in securing the financing required to purchase your business.
The Tenacity To Stay The Course. The selling process can take up to two years with many challenges, deadlines and required protocols along the way. An experienced broker knows all the time-tested techniques necessary to keep the process on track. From the buyer’s initial interest, through the due diligence and initial offer stages, all the way to the negotiation table, they have systems in place to help prevent a deal from going south.
Of course, all brokers are not created equal. As in any profession, some brokers are far more talented and experienced than others. How can you separate the wheat from the chaff? Just remember this – if a broker is not willing to put their promises in writing and sign off on them, move on.