If you’re considering buying or selling a business, you may have heard about business brokers. But what exactly do they do, and why do you need one? In this post, we’ll explore their role and the benefits they can provide.
What does a business broker do?
A business broker is a professional who helps business owners buy or sell their businesses. Their role is to facilitate the transaction, acting as a middleman between the buyer and seller. They have extensive knowledge of the business sales process, and they use this expertise to help their clients achieve their goals.
Here are some of the key tasks a business broker performs:
Valuing the business: Business brokers use a variety of valuation methods to determine the fair market value of a business. This is a critical step in the sales process, as it helps the seller set a realistic asking price and helps the buyer determine a fair offer.
Preparing the business for sale: Business brokers work with the seller to prepare the business for sale. This may involve improving the financial side, updating the business plan, or making repairs to the facility.
Marketing the business: Business brokers create a marketing plan to promote the business to potential buyers. This may include listing it on online marketplaces, creating marketing materials, and reaching out to their network of contacts.
Qualifying buyers: Business brokers screen potential buyers to ensure they are financially qualified to buy the business. This saves time and resources for both the seller and the broker.
Negotiating the sale: Business brokers help both the buyer and seller negotiate the terms of the sale. This includes price, financing, and any contingencies or conditions.
Managing the closing process: Business brokers guide the buyer and seller through the closing process, ensuring all legal and financial requirements are met.
Why do you need a business broker?
Here are some of the key benefits of working with a business broker:
Expertise: Business brokers have a deep understanding of the business sales process and can help you navigate the complexities of buying or selling a business.
Confidentiality: Business brokers maintain confidentiality throughout the sales process, ensuring sensitive information is protected.
Time savings: Business brokers handle many of the time-consuming tasks involved in buying or selling a business, allowing you to focus on running your business or exploring potential opportunities.
Better outcomes: Business brokers can help you achieve a better outcome by negotiating on your behalf and ensuring the transaction is structured in a way that meets your goals. You as a business owner have no control over the level of offers buyers make, but your choice of business broker can make a huge difference. By creating a marketing plan specific to your business and targeting the marketing in the right way can make as much as 15% difference in the level of offers received.
Conclusion
Working with a business broker can be a valuable investment for both buyers and sellers. If you’re considering buying or selling a business, please speak to us at Sheldon Bosley Knight to learn more about our services and how we can help you achieve the best price for your business in the best timescale.
Get in touch with Steve Bell at steve.bell@sheldonbosleyknight.co.uk or by phone on 01789 387882 or 07572 980179.
