How a broker can help when selling your business.
For starters, a broker is an independent agent whose main responsibility is to bring sellers and buyers together. If you hire a real estate broker to sell your house the broker acts as a middleman, he doesn’t own the house and he instead facilitates the transaction. Just like with a house if you have a business, you as an owner can sell it yourself. However, there are many reasons why you should consider hiring a business broker:
- Paperwork: Do you know how much paperwork you will need if you are selling your business? According to the Small Business Administration SBA you need to prepare a sales agreement. What else? You can invest your time doing the research on your own or consult a business broker. A business broker’s expertise consists of navigating through extensive paperwork and the formalities in a daily basis. Having an experienced business broker on your team will save time completing paperwork. Don’t forget that time is money!
- Business Continuity: Selling a business is a full-time job as it is. The owner should maintain focus on running the business and take it to its full potential. All of these while selling.
- Confidentiality: If you are an owner and are selling your business how do you keep the matter confidential from employees and other stakeholders. You don’t want anyone to panic. The situation can be disruptive to the normal operations of your business. If you choose a business broker, he can protect the identity of your company while on sale. They can use a blind profile, a document describing the company without revealing its identity. We are going to talk further about ‘Confidentiality when selling a business’ in our next blog.
- Valuation Knowledge: Brokers can help you determine the value of your business. They have access to tools such as business transactions databases. There are also other variables that affect the value of your business. A broker can provide guidance calculating the accurate value of your business.
- Marketing: Business brokers can help you market your business. They can suggest diverse ways to advertise and put your business out there.
Ultimately, the decision is yours, you should take in to account the variables of time, money and resources and put on a balance and see what works better for you and your business.
New Gate Capital Partners is here to answer your questions, we can help you to sell your business. Feel free to check out our business brokerage page.