Using a business broker is a wise choice.
Business owners may be experts at running their businesses but many do not have the knowledge or experience to sell a business. Choosing the right intermediary (a.k.a Business Intermediary, Business Broker, Mergers and Acquisitions Agent, Investment Banker or Transfer Agent) can make the difference between closing your deal or not.
Selling a business takes a lot of effort and time which many business owners do not have. A business broker has the experience to prospect for buyers with confidentiality throughout the entire business transfer process. A professional Business Intermediary can find financially capable prospects, negotiate the deal, and set up closing without anyone finding out until the deal is done.
Selling a business can be emotional for the business owner. An intermediary will act on your behalf and establish a strong negotiating position. An intermediary will increase the opportunity to receive “the best price” for the business.
An experienced Business Broker should be able to determine this price after a financial analysis of your company. Having a business on the market with too high a sale price will ultimately deter prospective buyers, while under-pricing a business could cost you money.
Whitehurst Mergers will search their Extensive Buyer Database for pre-qualified buyers. If no match is found, tools such as newspaper, internet, trade publications, and other business brokerage firms will be used until the right buyer is found. A Business Broker will spend an enormous amount of time, effort and money to market a business, and this time and effort is only a fraction of what an owner would spend if he/she were selling it themselves.
A Business Broker knows the quickest, most effective methods of reaching the buying masses, while preserving confidentiality all while you continue to run your business rather than wasting your valuable time meeting with unqualified buyers.
Not only does a a Business Broker have a extensive buyer database, but he/she is skilled at preparing informative marketing packages that is then marketed.
An owner could experience damaging results if customers, employees, suppliers or competitors find out the business is for sale which could hurt the potential sale. A business broker will protect the confidentiality for the business owner during the process of marketing the business and only share information on a “need to know” basis.
Preserving confidentiality is one of the main reasons to hire a Business Broker. A professional Business Broker will have various confidentiality agreements already drawn up and is familiar with how to effectively administer this important document.
Most Business Brokers will not discuss a business with a perspective buyer unless a confidentiality agreement has been signed. To further ensure confidentiality, a financial statement from the buyer will often be required at the same time the confidentiality agreement is signed. By taking these measures in the beginning, confidentiality is insured by eliminating the “tire-kickers” before a company name or location is given.
The closing process is usually the most demanding step for all parties involved. An experienced Business Broker will have experience working with closing attorneys, CPAs, comptrollers or the escrow companies all while ensuring that your interest is protected and the deal closes. He will be the point of contact for the entire process.
Using a Business Broker to sell your business will lighten the time constraints involved in coordinating your support team.