Why use a Business Broker?
Posted by Tom Gledhill on Wed, Jul 01, 2009 @ 10:40 AM
WHY USE A BUSINESS BROKER?
Four Compelling Reasons a Business Broker Can Maximize the Value of Your Business
A business owner chooses to sell their business for a host of very good reasons. They range from a desire to retire, health issues, inheritance and tax planning, life style or other external reasons. In all cases, the business owner has one objective, TO MAXIMIZE THE VALUE OF YEARS OF HARD WORK.
A business broker who serves as a value added advisor, agent and planner is essential to navigating the owner through the business assessment process, framing or packaging the business for sale, valuing and pricing,, buyer identification and the purchase and sales process.
Here are four attributes your business broker must have to optimize your business value:
1. BUSINESS ADVISOR: Objective assessment of your business and its value with direct counsel on tangible actions to take in the near term to maximize value. In addition your broker will prepare an informational package describing the business, assist in evaluating offers, negotiate terms and conditions, utilize banking contacts to arrange financing to minimize or eliminate the need for seller financing.
YOUR BUSINESS BROKER MUST WORK WITH YOU TO INCREASE THE SALES PRICE!
2. PROCESS EXPERTISE: A thorough understanding of the purchase and sales process that will expedite the transaction. Selling a business has eight discrete steps. Your broker should know each step cold, explain each one to you, execute each one to your jointly developed plan and monitor deal progress to the plan
YOUR BUSINESS BROKER MUST KEEP TRANSACTION ON TRACK!
3. NETWORK OF BUYERS: A national network and infrastructure that tracks interested buyers and investors will allow for a more robust pool of buyers. Your broker must have that network, in addition to qualifying all potential buyers on their financial capability and motivation.
YOUR BUSINESS BROKER MUST HAVE A BROAD AND NATIONAL NETWORK TO DRAW THE LARGEST POOL OF QUALIFIED BUYERS AND INVESTORS!
4. INDEPENDENCE AND OBJECTIVITY: Representing you and your business with independence and objectivity is imperative to maximizing its value. Your broker should understand the importance of maintaining confidentiality. Further, your broker should share information about your business with prospective buyers at the right time and in the right amounts based on interest and motivation. Your broker should be part of an accredited national organization with a strict code of ethics and professionalism. In addition, your broker should have an accomplished and diverse background as a business advisor, covering multiple industries and brokering deals of varying size.
YOUR BUSINESS BROKER MUST BE A TRUSTED ADVISOR!