There is no question about it: the process of selling a business is frustrating and time-consuming. There are some business owners who at one point or another thought about selling a business or tried with no success. They understand that they need help with the process but are unsure who to turn to with the subject of liquidation.
According to Australian Bureau of Statistics, in 2018-19 there was a 2.7% or 62,462 increase in the number of businesses; 15.4% entry rate, with 355,722 entries and 12.7% exit rate, with 293,260 exits.
There are many businesses that have been sold for far less than they are worth. Some of these business owners were only able to accomplish their goals after several difficult obstacles. Many never understood the importance of working with a business broker and how it could have streamlined the entire process.
Have you ever wondered what the benefits of working with a business broker would be? Let’s examine what are known as the five C’s of business brokerage:
When a business owner decides to sell their business, they are facing impossible odds right off the bat. When one works with a business broker, the business identity and owner are protected under a veil by the brokerage and all bids are relayed to the broker.
A blind profile allows individuals the opportunity to understand the full details of the business without gaining insight into identity. Once an interested party has shown interest and been properly vetted, once they have signed a confidentiality agreement, they will be given more in-depth knowledge into the business. With this in mind, no customers or employees are ever aware that the business is potentially for sale, however, notifying staff of your intention to list the business is always advisable if possible. Transparency and honesty go a very long way.
Many business owners who have tried to sell their business on their own and failed all mentioned the incredible amount of time they had to place into the effort. Due to your concern about selling the business, it is possible to lose customers, profits, and the overall reputation of the business. While working with broker assistance, the average time to sell a business is in the range of six to nine months.
Shane Perry, a business advisor from Max Funding says, “Not using a broker service can make the process much longer and can take you away from the daily operations of your business. It is rather common for a business owner to try and sell their business and in the process get burnt out and end up losing countless profits. When you rely on the help of a broker, you can continue focusing on your business while they focus on the sale of it.”
Through the partnership with a broker, the business can receive full coverage. This means you can get the full exposure to a large network of individuals looking to buy. Business brokers have a wide variety of tools at their disposal to help gain full exposure. Summit Business Brokers has a database of active clients, as well as utilising all of the best business sales advertising sites. On top of this, daily posts on social media, while not considered “hot buyers” builds the business for sales online profile.
Marketing your business to a large pool of potential buyers has several benefits. Mainly there is the benefit of receiving multiple offers which allow the opportunity for your business to gain the maximum value. Additionally, business brokers have been trained to highlight the main benefits of your business to potential buyers. They have the experience that is necessary to ensure that you’ll get the best deal possible.
The primary function of a business broker is to fully close on the sale of the business. Due to this responsibility, they are well aware of potential issues and roadblocks that may occur. They have experience in working with several experts in the field including lawyers, bankers, financial consultants and buyers and sellers of all calibres, allowing them to handle the sale with ease. With this in mind, they are more than capable of selling a business and being able to receive a much more favourable deal than the business that tries to go it alone.
In general, working with a broker is going to offer your business full confidentiality if desired, allow you to continue working on your business, offer more exposure, increase the maximum return and ensure for a smooth and full closing.
Choosing to sell means you should be ready to face difficult processes and pitfalls throughout the procedure and it is best to have an expert by your side.
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Andrew owned and operated a large, successful newsagency for 20 years before deciding to sell and plan the next phase of his life. Multiple agents, huge upfront fees and no results left Andrew frustrated and emotionally drained.
Many hours were spent reflecting on why the challenge to sell his business was so stressful and difficult. Summit Business Brokers was formed on the back of those experiences and Andrew’s desire to help other business owners and prospective business purchasers achieve their dreams, sell their business or buy a business and reach their summit.
Andrew decided to change the business model of business broking. Summit Business Brokers charge no upfront fees and no administration fees. You only pay a small monthly advertising fee, a fixed rate commission upon completion of a sale and NO commission on YOUR stock. What could be fairer and why would you settle for less?
20 years of business experience as an owner, combined with 22 years of real estate experience, has given Andrew vast exposure to numerous business environments and networks. The knowledge Andrew gained over the years will enable him to successfully assist you to buy or sell your business for all it’s worth.
How the team at Summit will maximise your profits:
Are you looking to sell your business? Are you looking to buy a business? Not sure where to start? We are here to help.
No upfront fees, no administration fees, no sliding scales, no gimmicks, just a flat rate commission paid only on completion of a successful sale. Why pay a dollar more than you need to. Call Andrew today to find out how he can help. 0418 676 400