Studies have shown that 90% of business owners will fail to sell their businesses on their own. This is because selling a business is complicated. From prepping for the sale to considerations of the structure of the sale, identifying and locating the right types of buyers, negotiating the terms of the sale, due diligence, and closing. Hiring an experienced business broker can make all the difference in the value you receive for your business.
Why Hire a Business Broker?
For one, a professional business broker understands how to find the right listing price after a valuation. The key is to set your business at a competitive price, but not too high where an interested buyer may be deterred. In fact, many sales fall through because they are listed too high. That being said, listing it too low may attract the wrong buyers. If you hire an experienced broker, they will know what to do.
In addition, as a business owner, you need to continue to run your business. A broker will handle the day-to-day logistics of listing the sale and vetting potential buyers while you manage the business. Your business must continue to do well to sell it. A broker will handle all of the initial communication confidentially – providing NDAs before any information is shared. This will protect you from sharing the news of the listing with suppliers, competitors, and employees before you are ready.
Once they have found a suitable potential buyer, they have the right contacts at all of the right places – SBA banks for loans, attorneys for contracts, and accountants for sorting through financials during the due diligence process. They have the relationships, but also the skills – the skill to negotiate and get you the best price without the stress.
The most important aspect of selling your business is making sure you find a buyer who will continue to run your business effectively – whether that means supporting your current staff or promising to keep it afloat for your customers. It also means leaving with the seed money needed for your next investment or retirement. Once you and your broker have determined what your needs are pre- and post-sale, they can get down to handling the details.
At the end of the day, the most effective way to sell your business at the best price – for everyone involved, is to work with a business broker. They will become a part of your team, having all of your same goals and best interests in mind. If you are looking for a business broker in San Diego that will guide your sale with the best advice, look no further – contact Transworld Business Advisors San Diego North today. Let’s start your journey!
