Benefits of a Business Broker
Business brokers will assist in developing a fair asking price.
On average sellers will ask far too much for their business and lose valuable time and qualified buyers in the process.
Sellers are most often too close to the business to be objective in the pricing of the business.
Once the price is determined a broker will justify that price to a potential buyer.
Brokers will take the necessary time and energy to work with a buyer and help them understand the pricing methods used
and why those methods are correct.
Brokers will prepare a confidential business profile on the seller's business.
This profile will include the necessary information needed for a buyer prospect to review and make a determination whether
to go forward with a binding letter of intent to purchase. Brokers will write that letter of intent to purchase.
Another important benefit of using a broker is the ability to screen potential buyers.
Are they qualified to buy or are they wasting time. The seller has a business to run and doesn't have the time to chase
down every call that comes in with regards to the business. In the screening process brokers also ask the buyer about their financial capabilities.
If an offer is presented brokers can assist in the negotiating process.
We can be a "peace-maker" and a "deal-maker". Sellers and buyers will say things to a broker that if said to each other may "kill" the deal.
We are the "communication conduit". Because of the broker's experience they can help clarify the seller's wants and needs and
offer sound advice and opinions.
The presentation of an offer to purchase or letter of intent is only the beginning process towards a sale of the business.
Brokers will follow up on the details of a sale. Deals are lost primarily due to the lack of follow up after the offer is presented.
Brokers will keep the objective in mind and keep the deal moving along. Brokers will encourage the buyers to take the next stepů
see that the necessary paperwork is forwarded to the proper parties.
Brokers will keep the sale confidential. Sellers do not want their employees, competitors, suppliers, landlord, or customers
to know the business is for sale. When sellers attempt to sell the business on their own it is difficult to keep the sale confidential.
Many potential buyers find it difficult to talk about the business initially with the seller.
Buyers feel more at ease discussing the good and negative aspects about the business with a third party like a business broker.
They are also reluctant to discuss their financial capabilities with a seller.
Often times a buyer wishes to remain anonymous so talking directly with a seller is out of the question.
Business brokers are in the business of selling businesses.
Sellers are in the business of doing whatever they are doing. "DO WHAT YOU DO BEST AND LET THE OTHERS DO THE REST".
Note: One deal I had in the past was working with a FSBO (For Sale by Owner).
The owner has not had the time to return calls to prospects and therefore not do any investigation into who the prospects might be and if
they are qualified to buy. He began turning over calls made to him for me to follow up. He said he couldn't run his business and sell it too.
The business needs to be run efficiently and profitable before a new buyer will consider a purchase.
If he spends his time chasing down potential prospects (suspects) then his business will falter. The business needed his attention.