Reasons to Hire a Business Broker to Sell Your Business

Selling a small business is complicated. From the initial valuation and confidential marketing to buyer questions, numerous due diligence requests and barrage of legal documents, it is generally a trying process for most sellers. While business owners know how to run their companies, they are generally not experienced in the business sale process, nor have they spent time preparing. Good business brokers, on the other hand, know how to manage this process and can be a significant resource to business owners.

There are several reasons why hiring a business broker is the right choice. Here is a short sampling:

Peace of Mind: Business owners are busy, and should stay busy managing their companies. It doesn’t make sense to add something as complex as a business sale on top of their long to-do lists. Business brokers can manage the marketing and sale process while allowing business owners to continue running the business. Furthermore, if a seller takes their eye off of the business and performance slips, they can bet that the buyer will ask for price or deal structure concessions at the 11^th hour.

Price: Business brokers can help you determine a fair price for your business. Small Business Deal Advisors uses several market data sources that provide high-quality information on how your business will likely be valued when marketed. While we can’t tell you what your business is worth (only the market will determine that), we can tell you how similar businesses faired on the market and what you can do to increase the valuation.

Confidentiality: Maintaining confidentiality is a key part of the sale process. Business brokers are well-versed in marketing business-for-sale opportunities while maintaining confidentiality. Additionally, business brokers are accustomed to obtaining confidentiality agreements from all prospective buyers.

Quality Marketing: Well-trained business brokers understand how to successfully market business opportunities in order to attract a large number of interested buyers. Small Business Deal Advisors prepares confidential overviews that get buyers’ attention and thorough confidential business reviews that provide an in-depth look at the company’s investment highlights and opportunities for growth.

Utilize Years of Brokerage Experience: Brokers can use their experience to see around corners and anticipate potential deal problems ahead of time. They are thoroughly familiar with each step in the business sale process and will provide valuable counseling and advice every step of the way to the closing table.

Middle Man: Sell-side business brokers work for the selling owner and are an important advocate and fiduciary. Since most “buyers” will not actually buy a business, brokers are able to pre-qualify buyers to save the time of business owners. During sale negotiations, it can often help to have a broker in between the buyer and the seller to keep things running smoothly as well as act as an emotional buffer in case tensions run high (and trust us, they do!).

If you have any questions about buying, selling, valuation or the sale process, please let us know!