Thinking of Selling a Business Yourself?

Many times, when owners of small businesses decide to sell they think about the option of selling their businesses themselves, without the services of a business broker.  Although there are scenarios where this works out for the business seller, often it does not.  Selling a business is a process that usually does require the services of a qualified business intermediary. 

If you are thinking of selling your small business, consider the role that business brokers play in the sale transaction.

Pre-Sale Preparation

Sometimes a business seller may think that their business presents ‘just fine’ when in fact it could need a few small ‘tweaks’ to better showcase its value to perspective buyers.  The trained eye of a business brokerage professional can certainly help in advising the business owner about immediate steps that can be taken to increase the chances of selling the business.

Determining a Business Selling Price

Business Brokers can also assist in determining the listing price for the business.  Sellers normally want to have as high a price as possible but sometimes this is not the best course of action to take.  Too high of a selling price will discourage buyers and, conversely, too low of a price will leave money on the table.  A business intermediary can add tremendous value to this end of the process.

Advertising the Business for Sale

Marketing a business sale is much different than marketing a piece of real estate.  A professional business broker (or sales representative) should have a database of potential buyers or leads, a steady flow of interested buyers evaluating their listings and be seen as someone that focuses on selling businesses (and not just do it on the side).  Marketing a business sale must also be kept confidential.

Qualifying Buyers

There are many business “buyers” who inquire about a business sale simply out of curiosity, boredom or any other reason other than a genuine interest in buying a business.  These types of “buyers” are may be unfamiliar with the process to purchase a company or are unrealistic about the cash investment involved.  Whatever the case may be, the role of the business broker is to qualify buyers and present only the serious and capable buyers to the seller’s business.

Showing the Business to Interested Buyers

Sometimes a potential buyer is more comfortable discussing a business with an intermediary instead of directly with the owner.  This allows the buyer to ask the hard questions and be frank about their feedback – which they might not feel comfortable doing with the seller directly.

Negotiations

Having an intermediary at arm’s length during the negotiation can be critical to keeo the emotions in check and also to keep the communication flowing.  Selling a business can be an emotional process and sometimes having a professional that is detached is what is needed to steer the deal to completion.

Communication is the Key

One of the biggest roles a business brokerage professional can play is to keep communication flowing and keep emotions (and people) in check.  Selling a company is a lengthy process that may seem complicated but one of the biggest hurdles that a business intermediary can assist with is communication.

If you are considering selling your business and are thinking about doing it yourself please contact a business brokerage professional to discuss the options and value of working with a professional to assist you to sell your business.