Selling your business will be one of the biggest decisions of your business life. It also takes a lot of time. Hiring a professional Business Broker, will help you in the process. Managing a business and selling a business are completely different skill sets. Selling a business requires extensive time, knowledge, confidentiality, deal forms, salesmanship, marketing, negotiating skills, and much more. I have documented my own process into 105 steps that most Business Brokers use to get the deal to closing. I consider these 105 reasons why you should hire a Business Broker to sell your business or help you purchase one. We do not all follow the same steps, but the basic process is the same.
105 Reasons to Use a Business Broker to Sell Your Business
Selling a business is not like selling a house. The average business takes 6-12 months to sell and involves a lot of different steps. A Business Broker can help present your company in the best light to maximize the sale price. He or she understands the key values that buyers are looking for and can assist in identifying changes that can lead to a better selling price. Every business is different, with hundreds of variables that have an impact on the value. Business Brokers have access to business transaction databases that can be used as guidelines or reference points.
Deal structure is also especially important as well as the financing. A Business Broker will be able to help negotiate a structure that is beneficial to both the buyer and seller. In addition, understanding the SBA lending rules takes a lot of time to learn, and most business owners do not know all the available options like a business Broker. A deal must be structured in a way that will qualify for lending if lending is involved.
Since the Business Broker’s sole function is to sell the business, there is a much better chance that a deal will be closed in less time. The faster the sale, the lower the risk of employee problems, loss of confidentiality, and customer defection.
A business owner should be aware that there are a variety of valuation methods available to a Business Broker. There is no one-size-fits-all approach when selling a business. Do not be impressed by the Business Broker who presents the highest listing value – you may only be setting yourself up for failure during the sale process. Determining the right selling price takes a lot of research and time. Setting the right price will have a big determination on the sale. I personally send the details of my “Brokers Opinion of Value,” to my clients. As a Business Broker, we must keep the seller’s expectation in check. If a Business Broker values a business at 1 million, but the seller wants 3 million, that is going to be a problem. This is a common issue Business Brokers encounter.
About Jeff Jump
Broker of Record
Jump International Business Brokers
Jeff Jump is the managing Business Broker of Jump International Business Brokers. Jeff previously owned and operated two printing companies for over 15 years. Jeff has a Florida Real Estate Brokers License and is a Certified Business Intermediary® with the International Business Brokers Association®. He is also a member of the Business Brokers of Florida® Association.