As we discussed in the last article – although there are many reasons to use a business broker, I will focus on just a few of the main reasons from my personal experience.
This is usually one of the first questions that I get asked and is definitely one of the most important. We are held to a higher standard than Realtors or commercial agents because the confidentiality of a business that is on the market needs to be paramount. Here are two recent examples that will highlight why you need a business broker and not just an agent in the real estate industry if you want confidentiality to stay in place.
1. A Realtor asked us to disclose a business to a client of his. While we do not necessarily cooperate with a Realtor we will pay referral fees. I asked the Realtor to give me some background on the buyer, like what they were looking for – and not only did they not have this basic information, they did not even have the client’s full name.
2. Loopnet is used to lease or purchase commercial buildings, not to sell businesses. I recently acquired another business listing where the commercial agent listed the business on Loopnet, posted a picture of the logo of the business and then added a disclaimer of “Do Not Speak to the Staff”!
Saving a few percent on listing fees may not be worth your clientele or an employee finding out that your business is going to be sold.
We already have much of the necessary information on most of our buyers such as financials, background and requirements for a business so we can quickly qualify or disqualify a business as a likely fit. If it is a buyer we do not have this information about, we will get it. Once we are sure of a possible fit between a buyer and a business, we systematically release pertinent information so confidentiality can be maintained.
Packaging Business Documentation for Sale
One of the skills we possess is properly packaging the business documentation into a format that will satisfy a buyer, lender, CPA and an attorney while knowing what each one will want/need to see as not to affect a deal. This information can include recasted financials, SWOT analysis (Strengths, Weaknesses, Opportunities and Threats), valuation methods, and details of the business such as advertising, staff duties and pay, press and so much more.
Although there are many other reasons to use a business broker such as negotiating strategy, maximizing price, paid advertising by the broker, business advice such as contracts and so much more there is no doubt that using a qualified business broker has many benefits to assist in selling your business quickly and professionally.
1910 Park Meadows Drive, Suite 202
Fort Myers, FL 33907