Selling a business takes effort and time; a business broker ensures confidentiality, financially qualified prospects, deal negotiations, and a successful closing.
Pricing a business
In conjunction with a CPA, a business broker conducts a thorough market analysis, determining the best price for your business.
Buyer prospecting
Once a business owner has decided to sell his business and all the pertinent documents have been prepared, a business broker qualifies all potential buyers.
Confidentiality
Preserving confidentiality is one of the main reasons to hire a business broker. Brokers manage the requirement of financial statements and confidentiality agreements of all potential buyers before your company name and location are provided.
Higher sale price
A business broker brings a highly honed skill set to ensure the seller obtains the highest price for a business, such as evaluation experience, market awareness, and knowledge of deal structure to name a few.
Handling the support team
Having a support team in place facilitates a smooth business transfer. A CPA, attorney, lender, and controller are needed in the sales process and the business broker is the natural point person that coordinates your winning team.
The closing process
The closing process is usually the most strenuous and stressful steps involved in the sale of a business. A seasoned business broker has the experience of working with closing attorneys and escrow companies, ensuring your interests are protected as the deal closes and relieving the seller of handling any problems on their own.
Services provided by a qualified Business broker
· Consultation and review of seller’s documentation
· Review of seller’s financial statements
· Market analysis
· Listing agreement, seller’s disclosure & file
· Marketing plan development
· Buyer qualification, interview, and screening
· Business showings and follow-up
· Buyer Letter of Intent and seller presentation
· Meetings with buyer/seller to coordinate buyer due diligence
· Consultations with buyer/seller and outside team advisors
· Consultation with parties regarding transfer of licenses, utilities, etc.
· Attending the closing and subsequent transfer of the business
To learn more about selling a business, get this book by Alex Vantarakis, “Exit– A Business Owner’s Guide To Selling A Company”.