Are you wondering why you should hire a broker to sell a business and pay them commission when you have buyers all around you? You aren’t alone. Many business owners considering any type of merger & acquisition have the same question. The question arises due to a lack of understanding about the market and what exactly brokers do.
Let’s study some reasons to hire a broker when selling a business:
Real Business Buyers are Few
Business buyers seem to be everywhere, but that’s not true. But the reality of merger & acquisition industry is that the majority of individuals expressing interest in buying a business or considering a company takeover never do so. Brokers possess a lot of experience in buying and selling businesses on behalf of their clients.
They can almost immediately find out whether a potential buyer is really interested in buying a business or they’ll waste your time. Hence, a broker will connect you with real buyers who will genuinely be willing to buy your business if it’s worth buying.
Accurate Business Valuation
An important fact to keep in mind when selling a business is that what you think your business is worth isn’t necessarily what others will be willing to pay. An experienced broker should offer high-quality business valuation services, providing you with accurate information about your business’s earnings and financial health.
Plus, this type of verifiable valuable is exactly what buyers wish to see. Having your business evaluated by a third-party makes it more credible in the eyes of potential buyers.
To Find a “Good” Buyer
Just as real buyers are few, good buyers are also pretty rare. You don’t want to sell your business to just anyone who expresses interest. It has to be someone who offers the objects and purchase price you have in mind. A broker will develop marketing materials and display your ads on the right platforms to help you find a perfect buyer for your business.
When you, as the seller, receive a letter of intent, the broker will help you evaluate the offer and come up with a counter offer, carrying out negotiations on your behalf. Throughout the due diligence process, the broker will serve as your go between the fielding questions.
By now, you should have obtained a fair idea about why should you hire a broker when selling a business. Not only will they help you find real buyers and help you achieve more realistic business valuation but also effectively negotiate on your behalf.
We truly hope that this guide makes your business sale process seamless. If you need an experienced business broker, reach out to Intellinz, and get connected with our wide array of opportunities, including business brokers that are guaranteed to set you up when selling your business online. We’re excited to take on your project. All you need to do is give us a call.
