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15 Reasons to Hire a Business Broker When the time comes to sell, many business owners grapple with the question of whether to hire a business broker. After all, wouldn’t it be great not to have to pay anyone a sales commission? So what does a business broker do for you? Why should you hire a business broker?Here is a list of reasons that explain how you will benefit from the assistance of a qualified business broker: 1. Confidentiality: An experienced and qualified business broker will help you maintain the confidentiality of your business sale by asking the buyers the right questions and setting up appropriate steps of delivering information. We require that ALL buyers sign a Non-Disclosure Agreement (NDA) before we proceed with more information about a business. Even after we sign the NDA we begin with a Blind Profile about your business. We don't want to reveal who is for sale until we are sure that the buyer is financially qualified to purchase the business. We prefer to set up a personal meeting with the buyer before we reveal who is for sale. By this time, we have had discussions with the buyer and have an idea of the buyer's financial ability to make a deal before they learn who you are. We have also determined that the buyer is a serious and genuine candidate to acquire your company. We CARE about your confidentiality. 2. Financial analysis: An experienced and qualified business broker knows how to produce an effective financial analysis that shows an attractive and accurate picture of your business. We work with you, your financial records and sometimes your accountant, to produce a cash flow analysis (we refer to it as Discretionary Earnings) that will clearly demonstrate the true profitability of your business. Your tax returns by themselves rarely show a flattering view of the performance of your business. A good business broker can produce materials that PROVE to the buyer how much money your business REALLY makes. Your accountant's job is show the least amount of profitability so you pay less taxes. We use the same financial information to show the MOST profitability possible. 3. Discretion: An experienced and qualified business broker will meet and deal with your buyers at an off-site location. We can arrange discreet meetings so your employees will be less likely to realize that the business is being sold. We want to handle your business sale as discreetly as possible. We ALWAYS recommend that you do NOT tell your employees that you are selling your business. If you haven't told them yet, please don't! 4. Controlling the deal flow: An experienced and qualified business broker will deal with and control the process of the transaction. We need to advance the steps of the deal to bring it to a closing table. Starting from our initial meeting with a buyer, to qualification of buyer, offer agreement, negotiations, removal of contingencies, purchase and sale agreement and finally the closing, we work the deal every step of the way, and at no additional cost to you. We get paid to succeed in the end! 5. Business Valuation: An experienced and qualified business broker knows how to help you arrive at a the best selling price for your business. One that is not too high that it scares the good buyers away and one that gets you a fair value for the business that you have spent so much time on. We are very experienced at valuing businesses. We use various methods of valuation depending on your business model. Our 'Broker's Opinion of Value' is done at no additional cost to you. 6. Marketing: An experienced and qualified business broker will help you sell your business for its full value. We can bring your business to a much wider audience, produce superior marketing and financial materials that show your business in its true light (justifying the sales price) and we also significantly improve the quality of the negotiations with your buyers. 7. Financing: An experienced and qualified business broker will help your buyer obtain financing for the deal, which helps you get the maximum amount of money at the closing. We can direct your buyer to various funding sources helping the deal along by getting your buyer the cash they need! 8. Agreements: An experienced and qualified business broker will take care of the offer agreement, the purchase and sale agreement and other important details, saving you and your buyer money throughout the sale process. 9. Help Throughout the Process: It's always a rocky road to the closing! An experienced and qualified business broker will deal with the lawyers and the accountants and put out all the fires along the way. We know how to solve the problems that will prevent a deal from moving forward. We are accustomed to the needs of the buyer, which are just as important, and we'll work to solve problems as they come up. 10. Marketing Materials: An experienced and qualified business broker will produce a professional looking presentation package of your company. First impressions matter. Lots of care should be put into creating a nice marketing piece. 11. Qualified Buyers: An experienced and qualified business broker will pre-qualify and pre-screen the buyers to make sure that you are not wasting your valuable time with anyone that lacks the money and resources needed to run your business. 12. Experience: An experienced and qualified business broker will know what to look for when dealing with the buyers and can sense when troubles might occur in the transaction. Isn’t it a relief to know that there’s someone working for you looking out for your best interests? In addition, an experienced broker is thoroughly familiar with each step in the business sale process and will provide you with valuable counseling and advice every step of the way to the closing table. 13. Negotiation: An experienced and qualified business broker will help you negotiate the price and terms of a deal. Having an intermediary speak for you instead gives YOU a tremendous advantage and puts you in a much better negotiating position. We are highly experienced negotiators and can really help you through this necessary step in the sales process. 14. Strategy: An experienced and qualified business broker will have a good idea about what the buyers are thinking, what their negotiating strategy is and can help you get to an acceptable price for your business. We negotiate deals almost every day and are very familiar with the best strategies to make a deal happen. 15. Friend and Advisor: An experienced and qualified business broker will act as your advisor and confidant as you go through the difficult process of selling your business. We are there for you! We are on your side! Hiring a business broker makes good $ense! |
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