It happens all the time.
We meet CPA’s, real estate agents, attorneys, and even doctors who, when they find out that we are business brokers, say “I do a little bit of business brokering on the side”.
As former business owners ourselves, this is a horrifying thought.
If you were in the middle of an IRS audit, you wouldn’t go to a dermatologist who dabbles in accounting; you would go to a qualified CPA. The same goes for your business.
You don’t want someone who is unable to dedicate their attention to your business transaction because their expertise and focus is in a completely different profession. You want an experienced and qualified business intermediary who does this and only this for a living.
Why? Can’t my real estate agent help me sell my business? The short answer is no. Selling a home is almost nothing like selling a business. If your real estate agent is a true professional, they will realize selling your business is beyond the scope of what they do and refer your business transaction to a business broker instead.
There a few things that a business broker brings to the table those other professionals can’t:
When you sell your business, confidentiality is if the utmost importance. Without it, your business is sure to suffer. You don’t want your competition, your staff, or even your vendors to know that the business is on the market. When you sell, you have to get potential buyers into the business while maintaining the strictest confidentiality possible. An experienced business broker will know how to do this, will have the appropriate non-disclosure agreements ready to be signed, and will be able to market your business while keeping those who need to be in the dark in the dark at all times.
A business broker has access to networks of buyers, networks of other brokers and their buyers, and access to business databases that other professionals will not. Business brokers put together marketing packages for businesses every day, and they have the experience and knowledge that allows them to put your business in the best light for prospective buyers.
A successful business broker is successful because they are great at what they do. They know the ins and outs of the buying and selling of businesses. They know how to properly price and market businesses. They know how to get you through the due diligence phase successfully. They know how to navigate all of the red tape a seller will need to go through. They have this knowledge because they are experts at buying and selling businesses.
When you are considering selling your business, be sure that the professional you hire to help you knows what they are doing. Make sure that they are truly a business intermediary or a business broker, not someone who dabbles just for fun. Ask the question, “Is this your full-time profession?” If the answer is no, find a dedicated full-time business broker instead.
Are you a business seller who has been approached by professionals other than brokers or intermediaries to sell your business? Do you have questions about why you should use a broker instead of someone else? Please leave a comment or question here, and we will be happy to address and questions or concerns you may have.