If you want to sell your business, you might be wondering if you need to hire a business broker. While you may do it on your own, research goes against this decision, purporting that 90% of business owners fail to sell their business on their own. This makes the services of a business broker indispensable.
If you're weighing out the pros and cons, here are 8 reasons why you can benefit from hiring professional business brokers who are licensed and experienced.
Get Access to the Right Connections
An experienced business broker will likely have experience in the field. This inadvertently means that they will have access to the right connections, making it easier for you to find the right buyer. Sometimes, the best buyers are not looking where an amateur trying to sell their business may be marketing.
This is why hiring a business broker will make your business available to a larger pool of potential buyers. A professional business broker will help connect you to off-market buyers as well.
Professional Marketing Service
While you may think you know your business best, marketing it right requires more than just that specific information. A business broker is well-versed in all the useful marketing tactics that will help sell your business at a price that you deserve.
If you employ the services of a business broker, you're basically getting professional marketing along with the added perk of contacts. They will create a comprehensive business review (CBR) that expertly outlines all aspects and selling points of your business that you may have overlooked. A strong CBR is a great tool for selling a business.
Set Realistic Pricing
At times, the only obstacle between making a sale is the price you have set. You may think you've kept a margin for negotiation, but it may just be acting counterproductive, and putting off potential parties. You may even price your business too low, and deprive yourself from getting the price that you rightfully deserve. This is why it is important to set not only a useful price, but a realistic price.
If you don't know how to do that, a business broker will help you. The right price should be high enough that you still have room for negotiation, but not too high as that will just scare off buyers. Finding the middle ground is essential, and your business broker can identify that. They will likely have a certified business valuation from a certified valuation appraiser.
If you're trying to make a business sale, it will take up a lot of your time. This might take away from other responsibilities. A professional's services will be indispensable here. They will handle the job more expertly than you'd be able to, without causing you to neglect other work.
A good business broker will allow you to take charge of your business and enjoy your private life while doing all the heavy lifting for you. Selling a business is a tedious process so evade the hassle altogether.
When you are selling your business on your own, you might not be able to get the level of confidentiality you deserve. Many buyers who approach you have probably not sold a business or bought a business before, and will ask you a lot of personal questions that may invade your privacy. Hiring a business broker will create a buffer between you and prospective buyers.
A professional business broker will secure your confidentiality by getting a non-disclosure agreement (NDA) signed before they share information about your business. They will also successfully handle the level of information sharing before the buyer makes an offer.
Better Negotiation Skills
As a businessman, you may think you're good at negotiation, but the art of negotiation depends on the nature of the task. A business broker has experience in the relevant field and will know how to haggle the best possible price for you. Haggling can be time consuming, so why not let a professional do the job for you?
A professional knows how to pitch your business in a way to tilt the odds in your favor. If you're shying away from the additional cost of hiring a business broker, think of the cost advantage as a business broker is much likelier to get you the closest amount to your sale value than you would be able to get on your own.
Maintain an Objective View
Much like in sales of houses, business sales also require you to maintain an objective view. This is often hard to do when you have invested in the business and helped it grow. But to make a realistic and successful sale, you need to keep your emotions in check.
Often, sale of a business is not successful because people let their emotions drive their decisions, which isn't a smart thing to do. To avoid this, hire a professional business broker who is emotionally unattached from the business and will help close a deal successfully.
Peace of Mind
As a businessman, you're dealing with a lot of other things. Don't take the added load of selling your business too. When you can get the job done by a professional, why take on the added stress?
Ensure peace of mind and focus on the business. If your business falters, the buyer may haggle for a lower price. Hiring a professional business broker will provide you peace of mind that the sale of your business is in safe hands.
Hire a Professional Business Broker
You should hire an experienced and licensed business broker in the area in which you operate. Ensure that the business broker you're hiring is well-versed in a specific niche, so they have access to the best pool of buyers. They should offer an array of services, including corporate sales, mergers and acquisitions.
With their expertise, you can ensure you have best tips for selling a business, know-how on how to set a realistic price and so on, so that you're able to make a successful deal.