If you’ve come to a point in your business life where selling your business and moving on are in the cards, then you might think that looking at cost alone will be the key to a successful sale. Nothing could be farther from the truth.
Many first-time sellers try to forgo the services of a business broker because they want to save the money they would need to spend on the broker’s commission – unfortunately most of these sellers will end up costing themselves far more than they would have if they’d just sought professional help. Let’s look at why a good broker is worth every penny of their commission in a successful sale:
You aren’t qualified to sell your business.
You may be a fantastically successful business owner, but as far as selling your business is concerned – you are essentially the “new guy” on his first day. No one comes out of the gate knowing everything you need to know – so it makes far greater sense to hire someone who goes through this process every day. A good broker knows how to confidentially market your business, has databases full of buyers, knows how to properly price your business to sell – the list goes on.
You are too emotionally attached to successfully negotiate.
One of the main roles a broker plays is as a buffer between the parties, and this role is critically important. Any savvy business owner knows how important it is to stay objective and keep emotions in check during negotiations, but the hard truth is it is almost impossible to do that if it is your own business for sale. Why? You have lived and breathed this business, sometimes for many years, and as such it has become an extension of your life. The value of your business to you is far more than a number – but to a buyer, numbers are all that matter. Many deals have fallen apart because a seller was offended by an offer, offended because a buyer was planning on changing the menu or concept – all of these pitfalls can be avoided by having a broker in the middle.
You are going to spill the beans.
One of the most important aspects of a successful listing and sale is confidentiality. No one should know the business is for sale unless they have been properly vetted to make sure they aren’t your competition and unless they’ve signed the appropriate non-disclosure agreements to prohibit them from disclosing the for-sale status of your business. If confidentiality is breached, you can potentially lose clients, staff, vendors, contracts – all things that would be devastating for your bottom line. Sellers who try to go it alone inevitably tell the wrong person that the business is for sale. A good broker protects the confidentiality of the business, thereby insuring the integrity of the business all the way to the closing table.
Trying to save money by forgoing the services of a business broker will cost you far more in the end. You have worked hard for your business, so ensure you get the best return possible on all of that investment by having a professional guide you. They will be worth every penny.
Have you tried to sell your business on your own without much success? Do you have more questions about what a business broker brings to the table? Ask us! Leave us a comment or question here, and we will be happy to help.
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Fort Myers, FL 33907