Top 3 Reasons to Use a Broker When Selling Your Business
If you’re considering selling your business, you’re probably considering using a business broker. Using a business broker is a smart move – after all, they are trained to sell businesses. Just make sure your broker is a CBI, or Certified Business Intermediary. Here’s why: Not all business brokers are actually trained to sell businesses! In some states they only need a real estate license, while in other states, they need no license at all. A CBI has been highly trained in the art of selling businesses.
Using a Certified Business Intermediary to sell your business, you can be assured that he or she will know the market and how to reach qualified buyers. They also understand the importance of confidentially and know how to market your business in such a manner. Also, an experienced business broker can facilitate the due diligence process and the coordination of the closing documents to get the sale to closing as fast as possible. Finally, one of the most important reasons to use a broker to sell a business is to establish a market price for the business. A certified broker will perform either a valuation, a market analysis or an opinion of value to determine the highest and most probable selling price in today’s market.
Let’s further explore some of these top reasons to use a broker:
1) Reaching Potential Buyers
A business broker has the tools and resources to reach the largest possible base of buyers. He knows the market and has access to a database of active buyers. He also has experience marketing to buyers and understands the key values that they are looking for and can prequalify prospective buyers thereby eliminating any “tire kickers.”
Confidentiality is absolutely essential in most business sales. Letting the word leak out prematurely can be harmful in various ways, such as:
- Customers, competitors, creditors and employees can become on high alert when they learn a business is for sale. It can pose many questions, often left unanswered by management or owners, or worse – answered by gossip. All of this can detract from the business and can trigger the loss of business momentum, which can weaken the value of the business.
- Prospective buyers may become hesitant about purchasing if they feel sensitive information may be divulged to others.
A certified business broker will protect the identity of the company through a blind profile – a document describing the company without revealing its identity.
3) Benefiting from Experience
Hiring a business broker makes good sense if for no other reason than the experience they bring to the table. Here are some areas where you will benefit from a brokers experience and expertise:
- Experience with Multiple Sales – Most corporate buyers have acquired multiple businesses while sellers usually have only one sale. An experienced business broker can level the playing field for a business owner making his one and only business sale.
- Experience Valuating Businesses – Possibly the most important of all of the experience a Certified Business Intermediary brings to the table is that he can paint both an attractive and accurate picture of your business. He also has access to business transaction databases that can be used as guidelines or reference points when valuing your business.
- Experience Getting to Closing – Fast – Facilitating the due diligence process, while coordinating with other service providers required to close the deal, such as lawyers, landlords, accountants, franchisors, lenders and insurance experts a business broker ushers the sale through to closing. The faster the sale, the lower the risk of employee problems, customer loss and the competition edging in on business.
Cress V. Diglio, Florida Business Broker
Whether you are looking to buy a business, sell your business or merge with another business, Florida Business Broker Cress V. Diglio has the experience to assist you in all facets of the transaction. Call Cress today for complete transaction support and expertise, 888-984-4208, or visit https://floridacertifiedbusinessbroker.com.