Selling a Business? 9 Reasons to Enlist a Pro
10 February 2025: Selling a Business? 9 Reasons to Enlist a Pro
As we often say around here, “selling a business ain’t for sissies“.
Selling a business takes unique knowledge, specialized training and experience in the many singular aspects of this generally once-in-a-lifetime event. It also helps to have the support of a strong organization such as Worldwide Business Brokers and The Brokers Roundtable℠, our online support platform, behind you.
Most business owners know how important it is to hire an accountant to keep their books in order or an attorney to make sure the contracts they sign are well-constructed and provide adequate legal protection. Such owners know that they don’t have the training and experience to fill either of those important roles themselves.
But for some reason, many owners don’t understand the importance of having a similar level of talent representing them when it comes time to sell what is in all likelihood their most valuable asset. The sale of their business is very likely to be the most significant financial event of their lifetime.
We use that very argument when speaking to business owners. There’s a good chance that selling even a relatively modest-size business will impact the rest of its owner’s life. Hiring a real estate agent – someone without any of the training required to affect a successful sale – is tantamount to hiring a dentist to replace your hip. Owners trying to sell their business themself borders on the ludicrous. Every hour they spend addressing the numerous aspects of selling their business is an hour less spent running it.
Our training program is intense and comprehensive, and includes how, when speaking with a potential client, to easily underscore the many reasons a business owner needs a professional business broker if the owner wants the best chance of selling their business at the highest valuation. Here are nine of them.
1. Expert Business Valuation
Accurately valuing a business is not only complex – it is critical. Professional business brokers possess the expertise to assess financial statements, market conditions, and industry trends, ensuring that the owner will know what to expect from a financial standpoint. Without such insights, owners could under-price their business – thereby leaving money on the table – or, much more likely, over-price their business almost guarantying it will never sell. (See this article for a more in-depth discussion.)
2. Comprehensive Marketing Strategies
Professional brokers employ targeted marketing strategies to reach specific potential buyers (see item #3, below) or the general buying market, depending on type of business being offered. They utilize professional networks, industry contacts, and listing services to maximize exposure. This approach increases the likelihood of attracting qualified buyers willing and able to meet the asking price.
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We offer a comprehensive coaching program – both group coaching in our Brokers’ Roundtable℠ community as well as one-on-one coaching – tailored to Realtors, business owners , buyers and anyone interested in valuing, buying or selling a business.
To learn more, check out Resources in The Brokers Roundtable℠
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3. Access to Qualified Buyers
There are generally two basic types of buyers, financial and strategic. Knowing which is the most likely group for a particular business is Step 1 in the marketing process. Through extensive networks, brokers have access to pre-screened, serious buyers. They can identify individuals or entities with the financial capability and genuine interest in acquiring a business. This ensures that owners engage only with legitimate prospects, saving time and effort.
4. Maintaining Confidentiality
Maintaining confidentiality when selling a business is extremely important. Disclosing a business sale can unsettle employees, customers, and suppliers. Properly-trained brokers maintain confidentiality by discreetly marketing the business, requiring potential buyers to sign non-disclosure agreements and vetting buyers financially. This protects the business’s operational stability during the sale process.
5. Skilled Negotiation
Experienced brokers act as intermediaries during negotiations with the goal of securing the most favorable terms for their clients, the sellers. Their objective perspective and experience in negotiations are immensely helpful in the back and forth of offers and counteroffers. Experienced business brokers are generally capable of anticipating a buyer’s next move and can prepare the sellers for what is likely to come.
6. Efficient Transaction Management
The process of selling a business involves extensive paperwork and legal documentation. Brokers manage these administrative tasks, limiting access to confidential data, ensuring forms are correctly completed and promptly filed, and moving the transaction along a predetermined timeline. This reduces the risk of errors or setbacks that could delay or even jeopardize the sale.
7. Time Management
Selling a business demands significant time and attention. By handling the sale process, brokers allow owners to focus on the daily operations of their business, maintaining its performance and value during the selling process and transition.
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REALTORS! Our course, “Learn How to Value and SUCCESSFULLY Sell Businesses“, teaches you how to accurately value and successfully sell businesses.
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8. Facilitating a Smooth Transition
And speaking of the transition, good brokers assist in ensuring the transition between the seller and buyer is as seamless as possible. They help coordinate training, the transfer of licenses and other assets, and other critical tasks, helping to ensure the business’s continued success under new ownership – all while maintaining a high level of confidentiality.
9. Maximizing Sale Price
Professional brokers leverage their expertise to position the business attractively in the market, often resulting in a higher sale price. Their understanding of market dynamics, deal structure and buyer psychology enables them to highlight the business’s strengths effectively.
The Bottom Line
Selling a business is rarely a quick and easy stroll in the park. It’s more often a lengthy, complex process that requires a lot of time and expertise which can result in periods of deep frustration. A professional business broker can assume many of the more burdensome aspects encountered and smooth this process out. An experienced broker is at least as crucial to the successful sale of a business as a transaction attorney or accountant. The fact the some business owners don’t consider this when it comes time to sell is to their detriment.
Though the above partial list of reasons to hire a professional business broker is directed primarily at business owners, it is also an important part of our training program for new business brokers on how to prepare the owners they work with for what is likely to come.
If you have any questions or comments on this topic – or any topic related to business – I’d like to hear from you. Put them in the comments box below. Start the conversation and I’ll get back to you with answers or my own comments. If I get enough on one topic, I’ll address them in a future post or podcast.
I’ll be back with you again next Monday. In the meantime, I hope you have a safe and profitable week.
Joe
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The author is the founder, in 2001, of Worldwide Business Brokers and holds a certification from the International Business Brokers Association (IBBA) as a Certified Business Intermediary (CBI) of which there are fewer than 1,000 in the world. He can be reached at
jo*@Wo*******************.com