Categories :
Sponsors :
Advantages Of Using A Business Broker To Sell Your Company
Business Brokers
Protect Confidentiality
A broker can present your business to prospects without their knowing which business it actually is. For example, suppose you own a drug store and decide to sell it. If you phoned one of your competitors and asked if he wanted to buy a drug store, there goes the confidentiality. A broker, however, can make the call without releasing the name. Further, he or she can discuss the fundamentals of the business and of the proposed buyout deal, still without releasing the name.
Some people use a post office box to protect confidentiality at least initially. This practice is discussed in section VIII.
Screen Prospects
Screening prospects is an important and difficult part of the selling process (screening is discussed in section IX.). A good broker knows how to screen the tire kickers from the serious prospects. Further, he or she is motivated to screen prospects; a broker who wastes time with less than serious buyers will not earn much of a living.
Pool of Prospects
A good broker keeps a detailed record of every active prospective buyer that has passed through the screening process. Such records will include the kind of business each is looking to buy in terms of type, size, geographic area, etc. It is possible that a business broker will have one or more good prospects ready as soon as you list your company.
Legal Forms
A business broker should have all the appropriate forms such as confidentiality agreements, offer to purchase forms, etc. This could save a good amount of money in legal fees if the alternative is to have your lawyer draw up the forms. Alternatively, legal forms can now be purchased on the Internet.
Provides Range of Services
A good business broker can help in valuing your business, putting together a presentation, and providing other related services toward selling your business at the best possible price.
Ability to Continue Running Your Business
Selling a business takes a lot of a business owner's time, even with the help of a broker. If your business relies on you for crucial functions, such as business strategy, sales, customer retention, or operations and you begin to spend a lot of time on the process of selling the business your sales and profits may grow more slowly and your business's competitiveness may deteriorate in other ways. Any decrease in business, or even in the businesses rate of growth may appear to be a red flag to a potential purchaser. Selling the business itself is not a task that is easily delegated to an existing employee so hiring a broker may be the best way to minimize disruptions to the business at a crucial time.
Knows The Process
Probably the best argument in favor or using a broker is that he or she simply knows how to sell a business. A broker has been through the process many times and knows the pitfalls and potential problems that can be encountered. He or she knows how to spot the strengths and weaknesses of a deal and knows how to capitalize on the strengths and minimize the weaknesses. Simply stated, a good broker knows how to make a deal happen.
Previous, Business Brokers
Next, Problems With Using Business Brokers