Selling a business in a tough economy is hard. Sometimes its customers, suppliers, venors, or when a company owner has exhausted resources, energy, investors and ideas for a business – or, simply retiring and wants a new challenge. A fresh new perspective can bring about a change in an organization. If owners are considering selling because the industry is declining, finding a buyer may be more challenging. An experienced business broker can expose owners to a new pool of buyers and sell the property faster. A few tips are provided for getting the most out of a business broker.
1. Be Discreet. Ensure your business broker knows how to sell a company in a discreet manner. Finding potential buyers is a challenge when trying to keep the intent to sale a secret. Business operations could be compromised if customers, employees or suppliers know the business owners have intent to sell.
The last thing an owner needs is to lose business because customers are searching for replacements before the company is sold. When owners have to fight to retain customers, they have difficulty receiving the best value for the property. Negotiations become extremely difficult. Always use discretion to obtain the most money for a property.
2. Develop a Marketing Strategy. Is your business broker simply making decisions or does he or she have a solid marketing plan to get the business sold fast and efficiently? Business brokers should position the company to attract buyers. The marketing strategy should involve a variety of tactics to attract buyer leads from numerous sources.
3. No Pressure. Do not allow a brokers to pressure a sale. Reputable business brokers explain all aspects of the process to ensure the sale is in the favor of the seller rather than the buyer.
4. Prepare a Business Narrative. A seller’s broker will write a narrative on the business to describe its attributes to a potential buyer. The narratives acts as a selling tactic to entice buyers to purchase the business. Confidentiality agreements may be a part of a business narrative.
The buyer may also have a profile to share as a part of the negotiation procedure. The business broker will use the narrative and the seller’s business data (SBD) to advertise to major business broker sites. The general public will not be able to identify the business with this method.
5. Due Diligence. Perform research and due diligence on the employees of the company. Determine the seller’s role to ascertain the future viability of the company. Know why the business is up for sale.
Selling Your Business – Business Broker References:
- SBI Information: This article outlines several tips to consider when selling a business with a broker.
- BizBen: Readers of this article will learn the specifics of selling a business and what a business broker should offer.
- BizTaxLaw: This article lists what to expect from a business broker.
- Working with a Business Broker: Learn how to work with a business broker.