Rob Lenhard 4.29.2013
Why should you use a business broker?
Why should you use a business broker? Very simply, a business broker adds value to the entire process of buying or selling a business.
An experienced business understands the market, has access to statistics on recent sales, and is able to apply the various valuation methodologies to guide you on the most probable selling price. The business seller quite naturally wants the best possible price. If the business is overpriced too much, serious buyers will not even look at it.
A business broker helps maintain confidentiality, indentifying the business only to qualified prospective buyers. Most business sellers do not want their employees, customers, suppliers, or competitors to know they are considering selling. The business broker screens inquiring prospects while protecting confidentiality.
Not only will the business broker advise the seller about preparing a business for sale, but the broker is also able to implement a multi-pronged marketing program to give a business maximum exposure. A combination of internet, direct mail, database marketing, and cooperating with other brokers is more effective than an owner could manage on an individual basis.
A business broker is a critical advisor to the seller as a sale transaction progresses. The broker is knowledgeable about negotiating price, terms, and other key aspects of the sale. From answering inquiries to handling the purchase contract to the closing process, the business broker has a role that the seller cannot perform effectively.
Business brokers are trained in contract preparation and documentation necessary to protect the parties, guard against delays and problems, and avoid a transaction falling apart.
Remember selling your business yourself is not a good idea.