Whether you’re planning to sell your business or buy one, including a business broker in the process is a practical move. Although you’ll have to pay for their professional services, a good business broker will easily cover their fees utilising their ability to negotiate the best possible outcome. On top of that, they streamline everything—from searching for potential buyers to finalising sale documents.
To help you realise how business brokers can be valuable to the process, we’ve gathered the vantage points of various people who’ve worked with these specialists.
Determining the price of a business is complicated because various factors will have to be included in the computation. If pricing is too high, you will drive away potential buyers. If the pricing is too low, you won’t get the real value of your investment. A professional business broker has access to a wide range of data, allowing them to review similar transactions and determine the best price for your business.
If you’re a buyer, a broker can ensure you get what you paid for (or more!).
While a business broker hunts for potential buyers or sellers, you can focus on other internal matters. You might want to focus on preparing your employees, suppliers, partners, and affiliates for the transition. An external assistance can also free up your schedule to make way for your personal life.
For buyers, a broker can help to find a business that’s most suitable for them. According to Forbes, 90% of business buyers fail to complete a transaction because they don’t know exactly what type of business to get into.
Most often, businesses for sale are not advertised like real estate. When selling a business, you don’t open the doors for anyone who might be interested and allow them to explore all corners and try the couch. Companies have delicate aspects that should only be shared with serious buyers.
Alistaire Clare, Credit Capital investment analyst, emphasises the importance of confidentiality, “A professional business broker can filter interested buyers to ensure that only those who can be trusted are given an opportunity. They can also prepare a non-disclosure agreement to protect your business from anybody who’s just fishing for information.”
Buying or selling a business usually includes lengthy haggling. But why bother yourself with this part when a professional intermediary can represent you? Business brokers know how to present the deal in a way that serves your best interest. They also know what can conditions to approve and propose to make the buyer or seller agree on the pricing.
An experienced business broker knows how to prepare a clear and concise Information Memorandum (IM) for potential buyers or sellers. This review outlines every necessary detail of the business and is presented in a way that can be understood easily by all parties involved. The IM can make or break the deal, so make sure to ask for examples from your prospective business broker.
Written by Elizabeth Osborne, November 2020.
Planning to sell your business but don’t want to fail?
Sell your business with confidence with Summit Business Brokers!
Buying a new business?
Buy the right business at the right price, no hidden charges!
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