When a person decides to sell a business, they find now is a great time to do so. Sale prices have risen in recent years, and demand remains high. Many people chose to go out on their own following the global pandemic and are looking for the right opportunity to do so. What should a person do to help sell the business for maximum value?
Build Relationships
Know that an experienced business broker builds relationships rather than simply trying to make a sale. They know these relationships help establish trust between the different parties. An entrepreneur views the business as a part of their identity. They want someone who understands them on a deeper level and will help them create a deal that benefits all parties. The experience of the broker helps move the deal forward faster.
Expert Advice
However, before crafting a successful deal, the owner must know how much their business is worth and how to market it successfully. The broker helps with this. They know the latest sales data and can help determine the value of the business.
Once this value has been determined, the broker begins marketing the business. They call on the network they have established through their relationship-building activities. When a potential buyer has been found, the broker negotiates on behalf of the seller to ensure the best price is obtained. They do so by matching the right buyer to the business being sold.
Presenting the Business Favorably
Every business has its strengths and weaknesses. An experienced broker knows how to downplay these weaknesses while emphasizing the strengths. To do so, the broker gathers salient information about the business, such as data about its assets and sales. They then highlight how these strengths will benefit the potential buyer.
When doing so, the broker emphasizes the importance of confidentiality. If certain aspects of the business become public knowledge, the value of the business could decline or a potential buyer might choose to walk away from the deal. The broker takes steps to ensure this does not happen.
Patience During the Process
A broker should always put the client’s interests first. While they may be looking at a decent payday, this does not mean the broker should take the first deal offered. They need to be patient throughout the process and ensure the right buyer is found. The seller needs to know the process takes time. It could be months before the deal is finalized, possibly even a year. The broker should not rush the process simply to receive their paycheck. They need to ensure the seller gets the best deal.
Financing the Deal
The broker also helps secure financing for the deal. This financing needs to consider more than the asking price. What down payment will be required of the buyer? Will they be able to secure the necessary financing? The broker helps structure the transaction and create any non-compete agreements to ensure they are favorable to the client.
Now is a good time to sell a business. There is a high demand for companies today, both from individual entrepreneurs and large corporations looking to acquire new entities. Find a reputable broker to work with and the deal will move smoothly. While it may be tempting to market a business on your own, using a broker actually helps buyers bring in more money. Keep this in mind when deciding which option is right for the sale.
