Considering selling your business? This can be a considerable process even before you decide to list. While determining all the details you want to include in the potential sale, you might stop and think: should I use a business broker? These professionals can charge up to 12% commission on a deal, which might make you shy away from employing their expertise.
Realistically, the knowledge of a broker is invaluable during this process. You can typically fetch a higher price, an improved sale structure, ensure confidentiality and reduce risk, not to mention an increased likelihood of success. In this post, we’ll explore why business brokers are worth it and the reasons to use one.
- Selling a business without a broker is extremely difficult due to the unique details surrounding the vetting, negotiation, and sale process.
- A broker can save you time, money and improve the prospects of the sale of your business by marketing to the right buyers.
- Sunbelt Canada has a vast network of buyers and sellers, along with decades of experience in the industry, making our services an ideal choice.
13 Reasons to Use a Business Broker
While you might be tempted to sell your business yourself since you know the day-to-day operations of it better than anyone, the transaction process of a sale can be a difficult hurdle to overcome. Without a vast knowledge of this part of the industry, you could be left with deals that fall through or a completed one that creates more problems for you than solutions. Below, we review our top tips when determining whether you should use a business broker.
- Increase the Value of Your BusinessMany brokers start by recasting financials to uncover any hidden value within a business. In addition, a broker can assist you in understanding the value drivers. This can help you focus on specifics that will give you the greatest return.
- Find More BuyersLocating people who are serious about buying your business can be challenging. A broker can put together a great marketing package to show your business in its best light to potential buyers. From there, they will manage the introduction of potential buyers to ensure the least disruption.
- Reduce RiskA broker understands your desire for a smooth sale that has the smallest amount of risk possible. As a result, they will screen potential buyers to reduce potential exposure, saving you considerable time.
- Promoting Your BusinessWith access to a vast network, a broker can easily promote your company’s sale through various channels. This broad exposure will undoubtedly allow them to reach the right audience while maintaining confidentiality.
- Maintain ConfidentialityIf you prefer to keep the sale of your business quiet, that is no issue for an experienced broker. They can market it so that your staff, clients, suppliers, or anyone else relevant to your company is unaware that you are selling.
- Better Negotiations ProcessGoing back and forth with a potential buyer is time-consuming. It can also be increasingly difficult when either party is simply looking for the best deal for themselves. A broker manages negotiations and may even be a dual agent capable of understanding both sides’ goals, fears, concerns, and thinking. As a result, they are most likely to get to an acceptable deal for both parties.
- Greater NetworkYour broker will likely know many people in your business’s industry or, at the very least, be aware of what deals have been done within that sector. Their network can shine a light on potential buyers and professionals you may not have had access to or knowledge of without them.
- Fewer HeadachesWith a broker on the listing, you will have more free time to focus on running and improving the business. This is in stark contrast to dealing with the myriad of time wasters who show an interest. Your broker will vet potential buyers’ interests, experience, skills, financial capacity, and lifestyle goals to find the best match, so you don’t have to.
- Obtaining a Certified Business ValuationWhen determining how much your business is worth, a business valuation provides an exact economic value. Your broker can do this in a way that paints your company in the best light and will collect most of the materials and information needed for due diligence.When you go to market, you will know what your business is worth, price it accordingly, and be far more effective in dealing with negotiations, thanks to your broker.
- Provide Sound AdviceAsking questions and having concerns can be difficult to manage if you aren’t working with a broker. Luckily, these individuals have years of knowledge and experience completing business sale transactions. They can reassure you or offer some profound insights as the sale moves forward since they have done this far more than one time.
- Connecting and Working with the Right ProfessionalsOnce an offer has been accepted, a broker will recommend good lawyers, wealth planners, insurance agents, bankers and other professionals to both parties. They are also available to assist you with structuring or work with your accountant to ensure you are ready for diligence and avoid high tax repercussions.
- Working Out Financial ConcernsFinancing is the ultimate hurdle to overcome during a business deal. Without it, the transaction will fall through. A broker is capable of connecting with the buyer to prepare appropriate documentation so they can secure financing and will assist them in doing this.
- Supporting You Until the EndAfter the sale is complete, the previous owner doesn’t always simply walk away. Often, there needs to be a training and transition plan in place to ensure everything goes smoothly and the new owner can take the reigns successfully. A broker can assist in preparing a training and transition process to ensure the success of the purchaser, ultimately ensuring that the sale was successful.
Why Use Sunbelt Business Brokers?
Attempting to sell your business can be a challenging endeavour to execute on your own. With so many moving pieces, it is nearly impossible to envision a scenario where everything would proceed smoothly. With the support of Sunbelt Canada business brokers, you can rest assured that all of the details, specifics, and concerns of the sale will be covered. You’ll have more time to focus on what matters and plan for your next venture or even retirement.
At Sunbelt Canada, we see a more than 80% success rate for business sales. On top of that, these companies typically sell for 30% more than if sold without a broker.
So, the next time you are considering selling and want to know are business brokers worth it, we encourage you to reach out to our team. We have the right tools, training, and support, along with an extensive network, to sell your company to the right person. We’re here to help you achieve your goals. To learn more about our services, contact us.