Whether you’re selling your business, or you’re planning to buy a business, working with a broker can be invaluable. Business brokers can help you sell your business faster if you’re an owner, and they can connect you with a business that’s well-suited to your budget and your needs if you’re a buyer.
Whether you’re buying or selling, it’s a big decision and in the case of buying, it’s a big investment. With the importance of either in mind, knowing the benefits of working with a broker can help save you time and money, and prevent potential disasters that might occur if you tried to go it alone.
Working with a broker can help you as a seller by streamlining the experience, making it more efficient and ensuring your pricing and marketing are on-point. As a buyer, a broker can help you focus only on the businesses that meet your specific criteria.
Along with the general advantages, the following are three benefits of using a business broker, particularly from a seller’s standpoint.
Brokers Understand the Local Market
Selling a business requires general knowledge, but it also requires specialized and location-based knowledge in many cases. Brokers can help sellers come to an appropriate valuation that’s going to ensure they’re competitive in their local market. Knowing the local market is what makes real estate agents so valuable to home buyers and sellers, and the idea is similar to business brokers.
A broker, since they do work locally, may already have possible buyers in mind in your market so they can bring you prospects and qualified leads right away. Along with local considerations, a broker understands how to value a business based on the economic benefits it can bring to a potential buyer. They can help you create a valuation that is competitive and appealing, but is also going to maximize how much money you make from the sale.
Brokers Can Help You Maintain Confidentiality
Confidentiality is something many people want as they sell their business. Without having a broker as your go-between, maintaining confidentiality is difficult, if not impossible. If you don’t have a broker, you’re going to have to publicize the sale of your business to find any potential buyers.
A broker works from a confidentiality agreement, and a big part of their expertise is knowing how to market a business while maintaining that confidentiality. Confidentiality isn’t just important in terms of marketing, but a broker can help make sure things stay confidential on the part of your employees and customers, as well as your vendors. Confidentiality keeps your business operating smoothly as you look for buyers.
Brokers Coordinate Logistics
Brokers are experienced negotiators. They can work out the terms that will be most favorable to you while ensuring the deal goes through. This is especially important if you’re going to be working with your buyer after you sell your business to help with the transition. You don’t want negotiations to sour your relationship, so your broker is the third-party that helps you avoid that.
Finally, when you sell a business, a lot of details go into it and there are a lot of legal requirements that have to be met. For example, there will be lawyers, insurance companies, lenders, and other parties involved in the sale of a business. A broker can coordinate all of this for you so you know exactly what to do and when to do it. Brokers can make sure you don’t miss anything and that you’re aware of all of the technicalities and fine print of selling your business.