| After 20 years in business the owner decides | | | | knows where to and how to advertise your |
| that it is time to sell his business. He thinks about | | | | business. They have databases of buyers of |
| calling a business broker, but decides to sell it on | | | | which many might be looking for a business like |
| his own and save the fee that he would have to | | | | yours. They also proactively know where to find |
| pay a business broker. Is this a good decision? I | | | | buyers that might not be looking at your ads. |
| think if you interviewed the majority of owners | | | | * Financing - The majority of business sales |
| who have attempted to sell their business on their | | | | involve some sort of financing. Very few buyers |
| own they would tell you that this is was | | | | are all cash. A good business broker has banking |
| necessarily the best decision. As a business broker | | | | contacts that will enable deals to get financed. |
| I can tell you that close to half the calls I get are | | | | They also can advise you about seller financing. |
| from business owners who attempted to sell their | | | | * Negotiations - In every transaction there are |
| business and realized it is best to leave such an | | | | negotiations. Negotiating on your own behalf is |
| important task to a professional. | | | | similar to the saying "a lawyer that represents |
| I can also tell you that if you interviewed the | | | | himself has a fool for a client." |
| majority of my clients they would tell you that I | | | | * Buyer experience - Most business buyers are |
| must be out of my mind to be doing this for a | | | | first time buyers and do not have experience. A |
| living. Once they go through the process and see | | | | good business broker works and nurtures their |
| what it takes for a business to successfully | | | | buyers to make sure they make it to the finish |
| change hands they have no problem what so | | | | line and close. They help them obtain financing and |
| ever signing my commission check at the closing. | | | | facilitate due diligence. |
| Let me give you ten reasons why my clients will | | | | * Confidentiality - Most business owners are very |
| tell you that if you are seriously considering selling | | | | concerned about confidentiality in a transaction. |
| your business you must retain an experienced | | | | They do not want their employees, customers, |
| knowledgeable business broker: | | | | vendors, and competitors to know they are up |
| * Time Savings - Most business owners spend | | | | for sale. An experienced business broker is |
| the majority of their business day managing their | | | | accustomed to taking all precautions in keeping |
| businesses. Selling a business is what business | | | | the sale confidential. |
| brokers do full time. Qualifying and working with | | | | * Closing deals - I always tell my clients not to |
| buyers is a time consuming tedious process. An | | | | get excited when I bring them an offer that they |
| owner will have to make a compromise in the | | | | are pleased with. A good business broker earns |
| time that they normally dedicate to running their | | | | their stripes getting a deal from accepted offer to |
| business. | | | | a successful closing. So many obstructions present |
| * Experience - A broker has the knowledge and | | | | themselves during this process and a good broker |
| experience of selling businesses. Having this on | | | | will constantly be thinking creatively to move deals |
| your team will only increase the chances of | | | | along to the finish line. |
| getting the most value for your business and | | | | *Business brokers work for free - That's right, |
| making it to a closing. | | | | most business brokers work on 100% |
| * Realistic Valuation - It is my experience that | | | | commission so if they don't find a buyer they do |
| most business owners feel their businesses are | | | | not get paid. Do you know a lawyer, accountant, |
| worth a lot more that what the market dictates. | | | | or a consultant that will work on your behalf and |
| When one goes to market at a price that is too | | | | in some cases for up to a year and possibly not |
| high they risk losing many qualified buyers. This will | | | | get paid? |
| also increase the time it takes to sell their | | | | Selling a business is the most important decision |
| business. In some cases an owner will price their | | | | many entrepreneurs make in their lifetime. Their |
| business too low forfeiting dollars on their selling | | | | companies in most cases represent the bulk of |
| price. An experienced business broker will perform | | | | their net worth as well as the majority of their |
| a market valuation so the asking price is realistic. | | | | retirement savings. Is it really something they |
| * Marketing expertise - A good business broker | | | | should risk by trying to sell on their own? |