Here are five reasons to appoint a good broker:
1) Sound professional advice from someone that has done it before
Selling your business is for most a once in a lifetime experience, so you cannot afford to learn how to sell a business whilst on the job. You will need sound advice at all steps in the process from a professional who has hands-on experience of transacting many deals.
2) Find the right buyers
The value of a business is what a buyer is willing to pay. Looking under every stone and finding the right buyer who is willing to pay the price you are looking for is vital to a successful deal. Good brokers have long lists of suitable buyers that they have qualified to understand what they are looking for and the level of funds available. These lists take years to build. Good brokers will also research your market place and find strategic buyers – buyers for whom your business will represent strategic value.
3) Confidential marketing
Consider what would happen if your staff found out ‘on the grapevine’ that you are looking to sell the business? What if your key suppliers or even clients found out? Putting the word out yourself that you are looking to sell could seriously reduce the value of your business. Anonymity is essential when marketing a business for sale. A good broker will ensure this is maintained, and that the appropriate information is released to serious buyers at the appropriate moment.
4) Negotiate the best price
So you have found a buyer, perhaps the buyer came to you. How do you negotiate the best price? Do you have reasonable expectations? Has the buyer put all his cards on the table? You will perhaps never know the real answer to this, but if you have a valuation from an experienced broker and several offers on the table, it will be far easier to negotiate a deal you feel comfortable with.
5) Achieve a successful sale
Good brokers achieve a 70-80% success rate. Listing agencies or businesses advertised privately achieve 20% success in achieving a sale.