Business Brokers Let You Focus on Operations, Not Sales Negotiations
Whether you’re preparing to move on to your next business venture or getting ready to retire altogether, selling your business can be exciting. However, it takes more time, work, and business savvy to negotiate a sale than most people realize.
Business brokers specialize in finding qualified buyers and making sure you get every penny your company is worth. But that’s far from the only benefit they can offer you. Here are several reasons why you can benefit from working with a business broker.
Negotiations Involve More Than You Think
Negotiating a sale price for a business isn’t like haggling over the price of a set of dishes at a yard sale. Typically, negotiations take time and involve several steps, including the following:
Assembling financial information
Having the business appraised
Agreeing on contingencies (like buyer financing or transfer of office lease)
Deciding whether the buyer wishes to keep the same staff on board
Determining “covenants and promises” (like non-compete agreements)
Planning transitions (like vendor contracts or ongoing projects)
If you have experience selling businesses, it may be possible to do so yourself. However, if you’re unfamiliar with the process, the buyer’s business broker may be able to take advantage of you. Business brokers handle sales on a daily basis, and they have the skills needed to build a deal that’s favorable to you.
Successful negotiations start before you even make contact with a buyer. Business brokers are uniquely equipped to appraise your business, assess the market, and decide on a reasonable asking price.
A business valuation calculator can help you get a general idea of what your business is worth. However, for more precise valuations, you must rely on the expertise that brokers can offer.
When You Broker Handles Negotiations, You Have More Time for Your Business
Going through negotiations can be incredibly time-consuming. And if you’re involved in your company’s daily operations, that means you’ll have far less time to attend to your duties. When you’re trying to attract buyers, the last thing you need is a sudden dip in performance or revenue.
Many buyers also ask business owners to make what’s called a “business as usual” promise while the sale is being finalized. That means the current owner must continue offering the same services, inventory, hours, etc. If you’re handling all negotiations, keeping the company functioning normally might be a real challenge.
If maintaining the business during negotiations proves to be difficult enough, the sale itself may be in jeopardy. If this buyer backs out, you’ll have to repeat the entire process again with a new one.
The Right Business Broker Makes All the Difference
A business broker can help you maximize your profits while still giving you enough time to focus on operations. Of course, you should carefully evaluate any business brokers you consider.
It’s particularly important to make sure they have experience with companies in your industry. When you take the time to select the right broker, you’re making an investment in the success of your future sale.
