As a business owner, you have dedicated your time and efforts to building and sustaining your business. Now, you have decided that it is time to sell your business and open a new chapter in life. An essential step to take is to find a business broker, a trusted professional that handles the sale of businesses who will maximize value and give you peace of mind throughout the process. What should you look for when choosing a business broker?
You should find a business brokerage firm that collectively has experience in selling multiple types of businesses and has successfully closed on a significant number of transactions over the years. The firm’s managing director and most of the advisors should be certified business intermediaries and hold the appropriate professional designations – this way you know that they have the training and expertise needed to represent your business. No two businesses are alike, so when it comes to selling your business, more experience means that the broker is more equipped to handle the nuances that are specific to your business. At times, there will be unanticipated challenges that arise and you want the assurance that the business broker will be able to tactfully handles these challenges and continue moving the process forward.
As with everything else, a tried and tested process is important to have in place. Having an effective process yields results while limiting unnecessary exposure of your business and maintaining confidentiality. The business broker should have a consistent way of valuing the business, engaging the client, marketing the business, vetting buyers and conducting due diligence. Selling a business generally takes nine months or more, and you want a business broker that will move the needle a little bit every day until completion.
Documentation and Buyer Vetting
Documentation goes hand-in-hand with having a process. You want a business broker that makes it a priority to have all the proper legal documentation in place. The broker should obtain profiles and confidentiality agreements from all buyers. In addition, the broker should take the time to personally know the potential buyers for the business by meeting with them whenever possible before releasing any confidential information. You want to ensure that information about your business is not released over email or fax without the broker first knowing who is on the receiving end. These two steps will help the broker determine whether a buyer should be shown your business and protects your confidentiality.
A good business broker should have a multi-pronged approach to marketing your business for sale. The broker should have an active marketing strategy that maintains confidentiality while generating buyer interest in your business. Additionally, the broker should have a significant database of buyers that they reach out to when your business is ready to be marketed. In certain situations, it is also important that the broker will proactively conduct campaigns that get in touch with companies that could be strategic buyers for your business.
The broker should have ample resources to successfully sell your business, including a solid group of experienced brokers and be able to scale to meet expanded workloads; the more brokers there are, the more exposure your business will get and the more opportunities to sell your business. The broker should have access to databases, reports and statistics that help them value your business accurately. In addition, the broker should have the ability to widely market your business through various channels. You should also look for a broker that has relationships with banks, transaction attorneys, accountants and other professionals that will aid in the sale of your business.
As you seek out a business broker, keep these tips in mind. Be sure to ask questions that speak to these subjects so that you are equipped with the information you need to make your decision. Selling your business is a big step and having the right business broker will make the process a whole lot smoother.
If you want to gain additional information regarding the sale of your business and where to go from here, contact Sun Acquisitions at (773)-243-1603 for a complimentary consultation.
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