5 Reasons that a Business Broker Can Get You More Money
5 Reasons that a Business Broker Can Get You More Money
When you look at the reasons a business owner would consider using a Business Broker, their biggest concern is how will a Business Broker get more money for their business.
Having said that , there are 5 key reasons that stand out when using a Business Broker and how they can get optimum sale price for their client.
They are:
1. Valuing the Business
How would a business owner have any idea how much their business was worth - They wouldn’t. Instead of picking a price or what they consider their business is worth a Business Broker will value their business thoroughly, giving them the true value of their business. They will be able to encourage the business owner to leave all the 'hard work' to them.
2. Objectivity
A business Broker can get the best deal for their client by providing objectivity to the sale. The broker won't get caught up in the emotion of the sale but instead will be able to keep the their client focussed on providing the Broker the relevant information for the listing.
3. Financial information
The business Broker will insist on being provided with current up to date financials for the business. This means they will be able to ascertain the true value of the business and put pressure on the business owners financial adviser to provide this information, something a business owner is hesitant to do. As well as supplying this information to complete the Information Memorandum. It will give the Business Broker information for valuing the business.
4. Information Memorandum and marketing the business
This is where the Business Broker can make the big difference in getting more money for their client. A well documented and comprehensive IM including every important detail about the business is key to getting the best outcome for the business owner. Many business owners have very little knowledge on how to do this. In addition knowing how to market the IM on different websites and through the Business Brokers website can be the difference in getting a good price for the business owner to getting the price beyond what they expected.
5. Negotiations
This is where a Business Broker's true strength lies. Being able to qualify the prospect and then taking them through a journey to a successful sale is key to ensuring the business owner gets the best price for their business. A Business Broker can negotiate and be firm on behalf of their client. This is quite difficult for a business owner to do themselves. Invariably they will get caught up in the 'back and forth' of negotiations which is not only stressful but also takes their focus away from the running of their business.
Please let me know if there is anything else you need.
Tags: business broker selling small business
