You have thought long and hard and have decided it is time to sell your business. You have worked long and hard and feel the timing is right. Maybe you are ready to spend more time with family, or travel to destinations you have only dreamt about. Maybe you just want to “cash out” and enjoy the fruits of your labor. So how are you going to proceed? And, do you need a professional business broker to give you the best chance? The answer is a resounding yes!
A seller who represents himself has a fool for a client. Maybe you’ve asked a supplier if he knows anyone who may be interested; maybe a customer. So when a name pops up and you have someone who appears interested, you get excited and emotional. This makes you a much less powerful negotiator. Because a professional broker has many, many buyers that have been prequalified and vetted, he/she can negotiate on your behalf. The fact is, your broker is your protection. For example, suppose you accept an offer from a buyer. Per your agreement, he puts down a deposit and needs you to carry a note over time. You may not have the resources or the know how to inquire about his background, run a financial or do any of the hundreds of things that a broker would have done. If this happens and he goes out of business, which he very well may, you may never get that money.
Suppose a prospective buyer back out or can’t get financed? Do you have a backup plan? Perception is reality. The value of a business is not only in the numbers but also in how you are perceived. If a deal goes south, it might be very uncomfortable for you to have to explain why your business has been on the market for so long, a scenario that, with a little due diliengence, could have been avoided.
As important as it is for a buyer to use a broker, it is major league vital to work with a professional when selling your business.