Why Hire a Business Broker to Help You Sell Your Business?
Business owners sometimes call me with questions about selling their businesses and whether or not they should hire a business broker in lieu of trying to so it on their own.
Why would I hire a business broker? Why would I pay for someone to help me sell my business?
Hiring a business broker does have advantages, some of which I’ll list here.
The first thing I tell someone is that business brokers work confidentially. In most cases, owners do not want their employees, competitors, vendors or customers knowing that the business is for sale. Business brokers will market the business in a confidential manner; they will not give any information that would allow someone to identify it as the seller’s business in particular until those interested parties sign certain documents, including a confidentiality agreement.
Aside from those parties that see the ads, brokers have their own sources for buyers, sometimes in the thousands, that a business seller on his/her own would not likely have. The broker will spend the time not only marketing the business but handling all the inquiries that come from marketing efforts, allowing the business owner to concentrate on continuing to manage the business.
Business brokers advise owners on their options on the value of their businesses and, if an owner decides to sell, business brokers help sell their businesses. That’s what they do. They have the experience of selling more than one type of business to a wide variety of buyers. They have the time and the know-how to get the business transfer complete—to reach Closing—which is the most important end result of a sale. And they have the expertise to act throughout the process to minimize and avoid problems that might occur after Closing as well.
Selling a business is one of the most important and potentially stressful decisions anyone ever makes in his/her lifetime. As you would with any professional, you should expect a business broker to provide expert, professional advice with YOUR best interests in mind. You should expect a broker to fully answer any questions you may have about the selling process, to understand your goals, and work with you on how you may be able to reach them. You should not expect a broker to pressure you toward any decision in which you are not comfortable.
We believe that there are certain circumstances when you may want to explore selling without a broker, and we often discuss that option with sellers. But, regardless of the ultimate decision you make, we feel strongly that the advice of professional, experienced business broker should add value to the process and assist you in making the best decision for you.