If you’re ready to sell your business, you have two options available to you: sell it yourself or hire a business broker. The choice is yours, but it would behoove you to know the consequences of those choices. Regardless of which choice you make, there will be a lot of negotiations, paperwork, and legal jargon that you will have to deal with. That alone could influence your decision to use business brokers or go it alone. But, as stated earlier, the choice is yours. This article is just to give you an idea of what to expect with either choice you make.
Selling With a Broker
A business broker can be a huge help because they can help you manage your time while you get all your ducks in a row. So you can concentrate on the day-to-day running of your business while it is still your responsibility. A broker will also have access to resources and knowledge that helps them to thoroughly evaluate a business and assess its market value. This can be invaluable because if your business is valued too low, then you won’t get what it’s worth; but if it’s valued too high, there won’t be many buyers. A business broker will make sure it is valued at the right price before negotiations begin in earnest.
And speaking of negotiations, business brokers have the skill and experience to get the highest possible offer from interested buyers. Over their years of experience, they will have gained many connections that allow them to find interested buyers quickly. And they will be able to put your business in the best possible light so that it is as attractive as possible to all interested parties. That also means business brokers will be able to save you valuable time since they can find interested buyers due to their knowledge of the market. These are all great reasons to enlist the help of a broker, but there are some reasons why you would want to go it alone.
Selling Without a Broker
A business broker is useful, but there might be occasions when they might not be necessary. For example, if you are selling to a family member, then a broker is unnecessary since there isn’t much legwork involved, and, presumably, you trust each other to be fair. If you are having a distressed sale because your business has a lot of debt, then the additional fees of a broker may not be worth it to you, or you may not be able to afford them. A business broker may not be necessary if you already have a buyer lined up who has made an offer that you already agreed to. And if you already have experience with selling companies, then you may not need the help of a broker.
So, Do I Need a Broker?
You might not need a broker to sell your business, but they can be incredibly helpful, especially if you’ve never sold a business before. And even if you have, a business broker can still be useful because they can expedite the sale of your business and save you a lot of time and effort. So, if you are selling your business, you should think about what you are capable of doing yourself and whether the assistance of a broker is worth it to you. In most cases, the conclusion will be yes, a broker will help with the sale of my business.