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Why use a business broker to sell your business?
For starters, business brokers have experience in selling businesses. Most business owners only sell a business once or twice in a lifetime. Business brokers are professionals. They take training, usually over a lifetime. They encounter many different situations and they can enlist the help of other brokers. You can’t discount the fact that they have been there, done that.
Business brokers have a process
Experienced business brokers list, advertise, and sell businesses through their logical process. They gather the right information and advertise in the places where serious buyers are looking. They weed out the tire kickers and concentrate on prospects who have the means and the drive to actually cross the finish line.
Business brokers are bull dogs
Business brokers don’t give up. They are persistent. They follow up on all leads, leaving no stone unturned. In their process they invariably run into walls, but they figure out a way to break through or go around the wall. Business brokerage is not for the faint-hearted. You want someone representing your business who exhausts every opportunity to the fullest. You spent a lifetime building what is potentially your most valuable asset – your business. You want someone who has the same passion for what you do as you do.
Do you really have time to sell your business?
By that, we mean “Do you have time to both run your business and sell your business?” Probably not. Something will suffer in the process. It is very time consuming gathering all the information needed to properly represent your business for sale.
A business broker will help you:
Sort through the materials
Assemble it in an attractive package
Place advertising to attract buyers
Sort through the buyers to find that perfect candidate
Negotiate the deal
Help the buyer obtain financing
Assist in due diligence
Every business broker has consulted a business owner who thinks their business is worth more than the current market says. This is especially true when it comes to the “Lone Ranger” business owner who has his hands in practically every part of the business. When the owner runs everything, even with several employees, most of the value of the business leaves when the owner exits. Whether you’re an owner thinking about selling or a broker consulting with a potential seller, here are a few basic strategies to maximize the business’s value and ultimately get a higher sales price.
Develop an Operational Process
One way to alleviate this problem is for the current business owner to put in place a system for running the business that can be operated by anyone. Examples of operational processes are often seen in franchises and can be extremely helpful with any business exit strategy. The process doesn’t have to cover every possible detail, but buying a proven, documented system gives a buyer more assurance and confidence that they can meet and even exceed the current operation quickly. Business sellers should have thorough, well-written manuals that can be followed by anyone to complete tasks for a variety of situations.
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