Deciding to sell your business is a big deal. You put a lot of time and effort into building and running your company. For many people their business is not only their biggest financial asset but also the recipient of a lot of emotional investment. Additionally, the process of selling a business is very complicated and time-consuming. You can choose to sell your business on your own, but considering how important it is to you, do you really want to risk the chance that you will make a costly error? This is where an experienced business broker comes in. The best way to protect your investment is to enlist their expertise.
What does a business broker do?
A business broker is a trusted advisor who can guide you through every stage of selling your business. To begin with, you will need to share your motivations for selling, as well as any potential obstacles that may surface along the way. Are you trying to sell to get out of financial trouble, fund retirement, or are you burnt out and just looking for more free time? Do you have any disputes with business partners, or a divorce that can cause complications with the sale? Brokers have been there before and know how to deal with problems that could cause a deal to fall apart. They can help you to plan your exit strategy and work towards your future goals.
During the process of selling a business, you need an objective advisor at your side, who isn’t emotionally attached. A broker can give you clear advice that coincides with your business and financial goals. They can also handle the more stressful parts of the sale, such as negotiating the price and the deal terms. Business brokers act as a buffer between you and potential buyers. They have extensive buyer lists and connections that assist them in marketing the business. This helps them to be able to find multiple suitors for your company. Brokers are able to do this confidentially, so they do not reveal the identity of your business or share financial documents until they know a buyer is serious. Before disclosing any private information, they make sure all interested investors are both financially qualified and sign a non-disclosure agreement. This type of confidential marketing would be extremely difficult for someone trying to sell a business on their own.
Business brokers also help manage the process of due diligence, where buyers perform an in depth review of documents and information pertaining to the business. They work with the buyer’s team to keep this document review on track and moving forward, so the deal doesn’t lose momentum. A broker’s efforts and experience make the sale process go much smoother. Their proficiency with business transactions allows you to do your job of running the business, without having to simultaneously juggle the task of selling it.
Adding Value to Your Business
Every business is unique and has its own unique value indicators. To begin the sale process, a business broker will perform a valuation estimate to determine how much you can expect to sell your company for on the open market. This takes into account recent sales, economic conditions and the state of the industry, as well as the business’s assets, liabilities and cash flow. In addition, brokers consider many intangible factors that are unique to your business and can add significant value to it. They focus on things that will make it stand out compared to other businesses in the same industry and work to educate buyers on these key characteristics. Their goal is to maximize your profit and prevent you from leaving money on the table. Business owners who try to sell on their own often make the mistake of selling for too little. They are concerned about listing for too much and get anxious about the business taking too long to sell. Brokers use their experience to find a price that is enticing to buyers, but not too low. In this regard, they can add tremendous value to a transaction.
At Corporate Investment Business Brokers (CIBB) in Fort Myers, we consult with sellers to determine if their business is ready to sell. We offer a free valuation estimate to figure out what your business is worth on the open market. If it isn’t ready to sell, or we feel that you can potentially make more from the sale, we will work with you to prepare it and advise you on methods to add value. CIBB has been working as a trusted advisor for business owners in Southwest Florida since 1986. Contact us and allow us to manage the complexities of selling your business while you continue to run it.
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