5 Reasons to use a Certified Business Broker?
On average, selling a business can take between 6 to 9 months. Here is a list of 5 reasons why using a Certified Business Broker will greatly benefit the seller when selling their business.
1. Maintain Strict Confidentiality.
Strict confidentiality is imperative when selling a business. When a business owner decides to sell a business, there is a risk of losing key clients, vendors and/or employees if word of the sale gets out. We have all potential buyers sign a Non-Disclosure/Confidentiality Agreement before we release any information about the business. We will also find out more about the buyer’s financial ability and his business acumen before releasing any confidential information. Brokers will also shield owners from being inundated with lookie-loos or callers trying to suss out information.
2. Let the Owner Run His Company.
It is imperative that the business owner continues to run the business at the highest level possible and to continue an upward trend of the revenues or they will risk a decline in the final sale price. There are hundreds of variables in selling a business and it’s the Broker’s job to pay close attention to these details. We handle the entire sales transaction, from the beginning, all the way to the close of escrow. With the broker handling all of the details, this will allow the business owner to focus on keeping the revenues on an upward trend. Buyers do not like to purchase a business with a downward trend of the revenues.
3. Provide a Valuation of the Company.
Certified Business Brokers will review the business financials, recast the Profit & Loss Statements to show the true profitability of the company, and to produce an effective Cash Flow Analysis to show the true viability of the company. A Broker will explain how the valuation was formulated and will suggest and explain a viable listing price. Business Brokers work closely with the owner and their CPA/accountant to receive the proper information on the financial strength of the company. Buyers like to see financials that are straight forward and transparent, they don’t like to see too much “creative accounting.”
4. Assist with All Negotiations.
Having a Certified Business Broker as an intermediary during the negotiating process can ease a lot of tension between the two parties. A seller that is selling his own business can actually end up killing his own deal. Business Brokers help during this very important step in the sales process and we understand that the seller wants to sell high, and the buyer wants to purchase low. Our strategy is to negotiate fairly and have an end result that both parties can be happy with.
5. Manage all Contracts & Documents.
Business Brokers will manage all of the numerous contracts, documents and paperwork associated with the sale of a business. This process is very time consuming but also very important and should be managed by a competent business broker.
Using a Certified Business Broker will help tremendously in selling your business.