Decision Time - Should I Go it Alone to Sell My Business Or Use a Broker?

This article aims solely concentrate on theidea who and when a serious buyer may walk
reasons and benefits of selling a businessthrough your door. It will take time and a test
independently and the areas to consider beforeyour patience. Be prepared.
taking this decision. Before moving into the areas2. Preparation
to consider and the decision making process, let'sIt staggers me how often business owners are ill
assume that you have already established yourprepared for the sale of their business. The
asking price and your business is in a fit state toaccounts aren't in order, they haven't prepared
put on the market.any form of summarised data for potential
If you are not at this stage, stop and reviewbuyers and the business isn't being ran effectively.
your position because I touch on businessAre you nuts? Get your house in order and do
valuations and how to achieve a solid price inthe prep. If you are serious about selling a
other articles. If you do not know the value ofbusiness yourself, you need to display professional
your business and you haven't reached a pointqualities that any buyer will expect. Anything less
where you know what figure to achieve, you arewill result in no offers and it's a complete waste
clearly a few steps ahead of yourself. It isof your time as well as theirs.
advised that you refer to some of my otherSo as the saying goes, fail to prepare then
articles and decide how you want to best achieveprepare to fail. Laziness will do you no favours so
a solid asking price. You're welcome to come backbefore you jump in head first and try to sell your
to this later on.business, do yourself a huge favour by getting
As a business owner and a ready seller, it's cleareverything in order first off. Otherwise, prepare
that you want to take charge of your sellingfor a long wait to get that sale...
process and why not? Using an agent is not for3. Costs
everyone. As a business person, you may preferIf you are looking to go it alone, one main
not to put all of your eggs in one basket or youattraction must be the cost saving of not using a
simply want to oversee the entire selling process.broker. However, have you considered the
There's nothing wrong with this and it is your rightbenefits of using one? Sometimes the appeal of
to act on your on behalf. If you have thesaving a few bucks may cloud your vision so
confidence and experience to handle this process,understand that their are numerous benefits to
it could save you a fair amount of agents feeshaving a good broker by your side.
and will give you complete control over who youYes, most brokers will charge a percentage of
meet, who you reject and how the sale proceeds.your final sale price and in some cases, will also
However, before you jump onto the internet andcharge a basic marketing fee. However, if your
start placing your adverts to get your businessbusiness is one that will attract a great deal of
onto the marketplace, consider a few points thatinterest from their database of registered buyers,
are part and parcel of selling a businessyou could end up with a quicker sale. Increasing
independently:your asking price by an equivalent percentage to
1. Timetheir fees could help to cover these expenses and
When selling a business yourself, it can beget you a quicker, smoother sale and not actually
extremely time consuming. Placing the adverts iscost you any more.
one thing, but responding to enquiries, discussingYou could always meet with a broker to discuss
the ins and outs of your business with preliminarythe selling potential of your business and by no
enquiries, preparing your business for due diligencemeans will you be tied to any commitments by
and arranging the countless meetings with seriousdoing this. One simple meeting will help you decide
buyers and times wasters (and you will getwhich way you want to go.
plenty) can really eat up your free time as well as4. Confidentiality
time that you should and could be spending onRemember, if you do decide to sell your business
running your business.yourself, ensure you fully protect your interests
If you are fortunate enough to be in a businessat all times! No matter how little the details are
that has a sizeable team to delegatethat you decide to disclose to any interested
responsibilities, then this may not be a problem.parties, have them sign a "non-disclosure
However, if you are a small business or a soleagreement", also known as a "confidentiality
trader, this could not only place demands on youagreement". If you don't, it could seriously
that you are unable to cope with; it could have ancompromise your position.
adverse effect on your business and itsHopefully these point will give you plenty the think
day-to-day operations. Something that you simplyabout. Selling a business yourself can be very
cannot allow if you want to sell it. A business onrewarding and for some, it is the preferred route.
its knees won't sell!But be under no illusions. It does demand more of
So ask yourself, do you have the time, resourcesyour time and if you want a quick sale, you
and patience to deal with the influx of enquiriesshould spend the required time to do the
that you will get and be able to dedicate the timepreparatory work first. This will save you a lot of
and energy to each that they require? You haveheadaches, stress and time wasted going over
to treat each and every enquiry with the samethe same ground with potential buyers.
respect, seriousness and fairness as you have noGood luck with your sale.