Does selling a business without a broker work? As a business owner, selling your business is easier said than done, especially if you talk about emotional attachments. You have built a business from the ground up, and now, here you are, finally decided to let it go. There is a tendency that your emotions will affect your ability to judge rationally, which is one of the reasons why many people prefer hiring a broker over selling a business on their own.
Many factors could affect your decision on whether or not to hire a broker, such as the worth of your business and nature, whether it operates locally or online. These factors could determine the marketing plan and the strategies needed to maximize the potential buyer pool. If your business operates online, various channels can be used to market your business. The thing is, whether your company operates locally or online, you would need to make sure you can sell it at the highest possible value. Doing so can be very tricky, especially if you don’t have any experience of selling a business before. With a broker, you will have someone well-versed in selling businesses.
The heavy load of selling your business will be taken off from your shoulders. So, you would have ample of time dealing with other pressing matters while not worrying much about the selling process knowing you have the help of a pro.
Before you decide to sell your business without a broker, you might want to take a look at what brokers can do for you. These are the following:
- They know the local market – Business brokers understand the local market, assist you with your valuation, and will strategically position your business to achieve maximum valuation.
- They find the right buyer – finding someone who wants to buy your business is a crucial aspect of selling a business. With a broker by your side, you don’t have to deal with every potential buyer as brokers do have a list of people who might be interested in your business, given the fact that they already know the existing market.
- They have plenty of time and experience – If you opt to sell your business on your own, you will be torn between finding the right buyers and running your business. Chances are, one or both will be sacrificed. Brokers, on the other hand, have ample time tending to the selling process because, after all, it is what they specialized in.
- They prescreen buyers – If your business seems appealing to many people, chances are more buyers would come your way. You would need to devote your time to screen them to ensure that your business will be handed over to the right buyer. If you have ample time, then screening buyers wouldn’t be much of a problem. However, this is not always the case. The majority of business owners don’t have the time screening buyers, which makes business brokers helpful. They interview buyers and make sure that their interest aligns with your business.
- They maintain confidentiality – Sometimes, business owners want to remain anonymous for some reason. This is why they hire a broker as such provides a confidentiality agreement to protect you and your business. By being anonymous throughout the entire sale, you will be able to ensure that your daily operations are not affected by the sales process.
- They handle the paperwork – Aside from the business sale itself, another thing that could eat up a considerable portion of your time is the required paperwork. A broker makes sure that all the necessary paperwork is completed correctly and on time.
If you are planning on selling your business without a broker, think of how much time, energy, and resources you can devote to the entire selling process. In most cases, having a broker looking after the entire sales process is a more practical decision.