17 Jan Selling a Business: Why a Business Broker is Necessary
Selling a business is not a common market transaction in the sense of real estate or other major transactions of that nature. It is a unique market that requires the expertise of a professional business broker to aid entrepreneurs in successfully selling their business by navigating the market and finding the correct buyer that will yield the most profit while ensuring that the legacy of the business owner remains. In today’s post, we will explore the reasons why it is crucial for owners selling their business to employ a professional business broker.
The first reason why a business broker is necessary is proper valuation of your business. If you are an owner that also manages the day-to-day operations of your business, you are going to run into issues of finding enough time to sit down with your accountants and secondary management and examine every aspect of the company for proper valuation. You need to cover all assets, debt and liabilities possessed by your company, as well as long-term projections of profitability and sustainability. This requires hours and hours of work and research that you may not have as an owner. Meanwhile, a professional business broker can meet with your accountants and managers and ascertain all this necessary information while you manage the duties that you are required to execute and maintain to keep operations flowing.
Selling a business also necessitates a business broker due to negotiations. An owner looking to sell their business wants to yield as much profit from the transaction as possible. While this desire is completely moral and is to be expected, an owner not familiar with the nuances of business broker negotiation may end up being his or hers own worst enemy in this regard. Treating it like an everyday business transaction and not immediately seeing eye-to-eye with a potential buyer is a sure-fire way for a brokerage deal to fail gloriously. Having a professional business broker is insurance in the fact that he or she can maintain decorum and professional courtesy while being a sage of brokerage advice, working to keep both parties civil during negotiations.
A professional business broker is also necessary for selling a business due to the marketing experience that brokers have accrued over the course of his or her career. Having navigated these waters many times before, a business broker’s experience is key to finding the correct potential buyer for your company. A broker will already have a list of interested parties that are seeking out new business opportunities for their entrepreneurial careers. Knowing which individuals are most interested in the industry in which your business operates, you will save several thousands of hours wasted over potential buyers that are not qualified to own and operate any business, let alone yours.
If you are in the market to sell a business, it is imperative that you employ a professional business broker that can successfully aid you in the sale. Contact Broker Matcher today!