If you are considering selling your current business or buying a new one, the road ahead can often be a long and arduous one. This is where a Business Broker can step in and help manage the process, and make it a smoother transition for the parties involved, both before, during, and after the sale.
What Does a Business Broker Actually Do?
Essentially, a Business Broker helps people sell their business. They conduct an assessment of the business, collate up to date financials and other relevant information on the business, and then suggest an ‘appropriate selling range’ to the seller. They can also advise of any shortfalls in information and how that may affect a sale.
A buyer will require this same sort of information during the sale process to make a purchasing decision. A broker’s role is to act as a conduit for information passed from a seller to a buyer in this regard.
Brokers also help buyers by presenting them with a range of suitable businesses which match their individual investment criteria and skill set. And finally, they assist in negotiations between the buyer and the seller, and can help keep a deal together until settlement by constantly liaising between the parties.
Whilst a good broker will always recommend buyers and sellers to consult their solicitor, they also know the pitfalls and the legalities of buying and selling businesses, and the correct paperwork that needs to be completed to achieve an effective sale. Knowing how to negotiate the red tape that is involved in buying or selling a business can seriously shorten the process, quite often by months.
5 Benefits of Using a Business Broker
- Confidentiality: Selling a business is not like selling a house where you want everyone to know about it. Instead, in most cases, it demands discretion so that the confidence of both the employees and the customers is not endangered; keeping the business operating as normal.
- Marketing: An experienced Business Broker will know how to market your business so that buyers that in the target market segment can readily appreciate its key values, rather than becoming caught up in non-essential details.
- Objectivity: Buying and/or selling a business can become a very emotional transaction to both parties. Often, a simple miscommunication between a buyer and seller can result in a lost deal. An experienced Business Broker brings objectivity into the process, negotiating the sale in a cool and calm manner on your behalf.
- Closing the deal: A good Business Broker is highly experienced at closing the deal and uses all of their expertise to ensure that the deal is sealed to the benefit of both parties.
- Paperwork: Buying and selling a business involves a lot of paperwork, all of which must be completed and submitted appropriately. A reputable Business Broker can help you through this process, leaving you to enjoy the results of the sale and reflect on your future.
Does a Business Broker Give You Real Value?
As a seller, a Business Broker not only finds potential buyers for your business. They act as a buffer between you and the buyers, and only introduce you to buyers which are pre-qualified. This can take a lot of stress out of the sales process; as they can discuss the value propositions and logistics of your businesses in a succinct and constructive manner. They can also investigate how long it might be before each potential buyer may wish to actually buy or move to the area, how financially viable they are and if they can actually afford to buy your business, and what their background and experience is, and if they can actually own and operate the business.
As a buyer, all of the businesses presented to you will be selected based on your requirements, so you don’t have to waste time reviewing businesses that are inappropriate or outside your budget. A Business Broker helps you in searching for opportunities that may suit, and assists both parties during the negotiations of the sale.
In general, a Business Broker makes the sales process easier, less stressful, and much faster for both the seller and the buyer. In fact, saving time and leaving the hard work to someone else is something that you can’t put a dollar value on; it truly is priceless.
Thinking of selling your business? At Verified Businesses, we are the leading Business Broker on the Sunshine Coast and we have an enviable reputation within the local business community.
Want to know more about how to sell? Contact our friendly team at Verified Businesses for your own information pack or to book a consultation today. At Verified Businesses, success in business is Verified.