Full disclosure to your business broker reduces risk.
He or she will make sure you are protected.
On the flip side, the lower the perceived risk to a buyer, the more a buyer can afford to pay and the more a seller will receive. What works for one buyer may not work for another; part of the task of the business broker is to find the right match.
As a seller, you may have concerns about the continuing success of the business, the fulfillment of the buyer’s contractual obligations with respect to financing that you have provided, and his or her ability to maintain employee, customer, and supplier satisfaction after the sale.
It’s Sunbelt’s job to minimize selling risk by:
- careful vetting of the buyer and assuring your confidence in their abilities to succeed (related to the risk of the vendor take back-seller-provided financing where the seller takes back a portion of the purchase price, paid off over time),
- checking fit with key staff members,
- assessing depth of the pockets of the buyers (working capital availability after the sale reducing risk),
- looking for chemistry between you and buyer,
- gauging perceptions re their ability to retain clients, and the like.
The decisions related to risk often have available solutions that bring risk into tolerable levels for both parties. These won’t be part of the equation if the lawyers see each other as adversaries. Understand that because their job is to protect your interests against all conceivable risks, the safest recommendation they can make in every situation is to not take a risk.
Your broker can help to find a balance that keeps the risk to an acceptable level for both sides. Keep in the mind that if the deal does not work for both it will not work at all.
We recommend you use a specialist in tax and business transfers who has actual experience in buying and selling businesses and understands their role in the process.
Our brokers can also assist you in coordinating any other service providers required to close the deal: lawyers, accountants, landlords, franchisors, lenders and insurance experts.