By: Russell Cohen | Murphy Business-
Why Hire A Broker?
Selling a business is a complicated and intricate process. Business brokers play a fundamental role in moving the process along to make it a successful deal. As is true before embarking on any major life-changing event, there are several factors and cautions involved that it is wise to consider before committing to sell your business.
To find the ideal potential buyer and to avoid scams, you NEED to hire a business broker. Brokers are professionals, expert at introducing the right buyers to sellers, and qualified to streamline the transaction process thereby helping parties to find the middle ground. The business broker operates in confidence throughout the marketing process to sell your business. Details of the seller and the specific business are kept anonymous until a transaction is imminent to avoid any possible adverse effects on sales or employer – employee relations.
Failing to prepare is the key error business owners make!
Preparation, preparation, preparation! Unsatisfactory preparation can be almost as bad as no preparation at all. Important matters such as financial documentation, the profit and loss sheet, insurance or lease issues and legal concerns have to be well prepared as it will have an impact on the market worth of your business.
You can be an expert in running your business but not at selling it and your reluctance to leverage the business brokers can be detrimental. As countless matters can only be looked after by your business brokers such as selling it at the best possible value, projecting your establishment’s future, marketing it at its highest potential, finalizing the necessary paperwork and catching the eye of secure qualified buyers.
The productivity and successful running of your business can be affected if you neglect it and spend time on selling it. The efficiency and the performance of your business is what you really sell which makes it compulsory to concentrate on it.
The efficiency and the performance of your business is what you really sell which makes it compulsory to concentrate on it.
Sellers tend to fix the value of the business at very high rates without first determining its real market worth. You should take some time and analyze market rates and activity, then you will easily determine a realistic and approachable price to your business.
As due diligence is important, you need to manage the protection and authenticity of representations made during the sale. Do you research and seek help from available resources like Business Sale Services at Murphy Business. Brokers make it easier to connect with serious buyers and can weed out individuals who express interest but lack the resources or know-how to run a particular type of business. Brokers can also assist with paperwork and administrative tasks that could otherwise be overwhelming for sellers to complete on their own.
What qualities should I look for in a broker?
In order to get the most out of your relationship with a broker, it’s important that you select one who has their pulse on the business market in your local community. This in-depth knowledge will come in handy for connecting buyers with sellers and correctly assessing the value of a business.
In addition, you’ll want to find a broker who you can easily communicate with. Since their role is to negotiate on your behalf, it’s crucial that you feel completely understood when discussing your priorities and goals with them. Likewise, as business negotiations can get complicated, they need to be able to communicate legal and financial details in a way that makes sense to you.
How much does a broker cost, and are their services really worth it?
Brokerage fees tend to run between 5 and 10 percent of the selling price of a business. In most cases, especially for first-time buyers, the services of a broker represent money well spent. It helps to think of the broker’s commission as a kind of insurance.
Sellers will gain peace of mind that their business is being properly valued during negotiations, while buyers will have access to objective advice that can help them make decisions with confidence.
It’s important to get a complete understanding of what services your broker will offer and what their fees include as you get started.
When you’re ready, we are too. Murphy Business – Boise.