4 March 2024: The Benefits of Using a Professional
If you own a business, do you realized that, like every other business that doesn’t fail, it will sell one day?
Your date with that inevitability may be many years from now or it may be so close that you can “see” it from here, but it unless it fails, it will sell.
And if you’re lucky, you’ll sell it when you want to sell it – not when you’re forced to. Ideally, it’ll happen when you’re calling the shots, not some divorce attorney, disgruntled partner, the heirs of a deceased or disabled partner or even you own family should something happen to you.
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Our tagline is “Every Business That Doesn’t Fail Will Sell…Every One!” It can be no other way. But during almost a quarter century in the trenches, we’ve found that far too many business owners are neither prepared nor cognizant enough to turn to the right people to help.
This post is not intended to depress anyone about something that’s unavoidable but rather to educate – first, about the inevitable and then about how to make that inevitability as painless as possible.
I hope we’ve accomplished the first objective simply by stating the above. As to the second, you need the right talents. Here’s what to look for.
Someone Who Can Value the Business
The main reason business don’t sell when they first come to market is that the owner’s price expectation is way off. As a rule owners h
ave an exaggerated opinion of their business’ value but when selling a business the importance of knowing its value is difficult to overestimate.
Accurately assessing the value of a business is crucial for attracting buyers and negotiating a fair price. Brokers use various valuation methods, considering factors such as revenue, assets, market trends, and future potential. Their in-depth understanding of these metrics enables them to provide realistic valuations, setting the right foundation for a successful sale.
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Courses! Courses! Courses!
Many of you have asked if our Flagship Course, “Learn How to Value and SUCCESSFULLY Sell Businesses“, could be made available on a module-by-module basis. Instead of enrolling in the complete course, could you enroll only in the module(s) you wanted? We’re happy to report that this is now possible.
We’ve broken our Flagship into six separate modules (or module groups) to give you all the flexibility you need to learn only what you want to learn – and we’ve moved them all over to the new Brokers Academy in The Brokers Roundtable℠ . The Flagship is still available but the modules are now available individually.
You don’t need to be a Member of The Brokers Roundtable℠ to access any of these courses but if you are, you’ll receive a 20% discount on any course you enroll in. If you’re not yet a member of The Brokers Roundtable℠, you can learn more – and get access to all the talent and resources – here.
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A Pool of Buyers
The right professionals have an extensive network of potential buyers, both regionally and internationally. This network, built over years of industry experience, can significantly increase the visibility of a business on the market. These professionals employ various marketing strategies, including online databases, targeted outreach, and connections within specific industries, to showcase the business to potential buyers efficiently.
Negotiations and Structuring Deals
Negotiating the terms of a business sale can be challenging and emotionally charged for the sellers. Professional business brokers act as impartial mediators, handling negotiations with potential buyers. Their experience in deal structuring ensures that crucial aspects like price, terms, and conditions are negotiated effectively, aiming for a win-win situation for both parties involved.
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Our course, “Learn How to Value and SUCCESSFULLY Sell Businesses“, teaches you how to accurately value and successfully sell businesses.
Discretion
Maintaining confidentiality is vital during a business sale. Brokers safeguard sensitive information, ensuring that only serious and qualified buyers gain access to crucial details about the business. This discretion helps prevent disruptions to the day-to-day operations of the company and protects the business’s reputation in the market.
Legal and Administrative
The process of selling a business involves intricate legal and administrative procedures. The right professional will guide sellers through these complexities, ensuring that all necessary documentation is in order. Their expertise in handling contracts and paperwork reduces the risk of errors that could potentially derail the transaction. Most such transactions require legal talent and such professionals will advise that a transaction attorney – not a divorce lawyer – needs to be recruited so that the sale adheres to legal requirements. Most such professionals already know and work with the talent a seller needs.
The Bottom Line
Business brokers bring a wealth of knowledge and experience to the table. They understand the intricacies of the market and have a network of potential buyers, both of which can significantly streamline the selling process. The value they add goes beyond simple listings; they serve as guides, advisors, and negotiators, working to secure the best possible deal for their clients.
The role of business brokers extends far beyond the simple transaction; they serve as navigators, orchestrating the seemingly endless number of details a business sale involves to impose some order on the sale process.
Selling a business is fraught with pitfalls. Is it priced properly to reflect its value? Have the likely buyers been identified? Can the marketing of the opportunity be done with a high degree of confidentiality? Will the deal be structured to keep taxes at a minimum? Are the financing expectations reasonable? Has the buyer been vetted – not only financially but operationally and reputation-wise?
When a business owner is ready – or, in the worst cases, forced – to move on, understanding that selling a business is to selling a house what heart surgery is to a flu shot. Having a professional intermediary to guide the way will make the process and operation both less stressful and more likely to be successful.
I’d like to hear from you. What topics would you like me to cover? How can we tailor these posts to be more useful to you and your business. Let me know in the comments box, below, or email me at jo*@Wo*******************.com.
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 600 in the world. He can be reached at jo*@Wo*******************.com