Selling Your Business
As a seller, there are some common decisions you may have to make:
- Financing – Do you prefer a higher offer with some seller financing or a lower offer with cash at close?
- Transition – Are you looking for a quick exit? Does the buyer expect a lengthy transition?
- Employees – Sellers are often very protective of their employees. Will the buyer relocate or replace staff?
- Ownership – Are you looking to maintain a minority stake for yourself or your family?
- Legacy – Most sellers don’t want to cash out and watch the company erode. Ten years from now they want to look at a successful business that they had a hand in building.
- Real Estate – Is the buyer interested in your building? If the buyer doesn’t want your facility, how soon can you fill it?
- Trust – Do you trust the buyer? Some sellers will pass up higher offers to work with a buyer they feel better about.
Even if you know your preferences, you may not get everything you want when making a deal. A reputable business broker or intermediary will be sure that the right questions are asked to help you review your priorities and understand what the market will bear. In the end, you’ll find yourself in a better position to negotiate and close the deal—without sacrificing your goals.
Benefits of using a broker to sell your business:
- Confidentiality. A business broker will protect the identity of the company and contact only owner approved buyers through a blind profile – a document describing the company without revealing its identity.
- Business Continuity. Selling a company is time consuming for an owner, who needs to remain free to focus on running the business while the broker is working on the sale.
- Reaching potential buyers. Business brokers have the tools and resources to reach the largest possible base of buyers.
- Marketing. A business broker can help present your company in the best light to maximize the sale price. He has an understanding of the key values that buyers are looking for and can assist in identifying changes that can lead to a better selling price.
- Valuing your Business. Putting a value on a business is far more difficult and complex than valuing a house. Every business is different, with hundreds of variables that have an impact on the value. Business brokers have relationships with the right experts who specialize in these types of evaluations.
- Balance of Experience. Most corporate buyers have acquired multiple businesses while sellers usually have only one sale. An experienced business broker can help level the playing field.
- Closing a Deal. Since the business broker’s sole function is to sell the business, there’s a much better chance that a deal will be closed in less time. The faster the sale, the lower the risk of employee problems, customer defection and predatory competition.