Should You Hire a Business Broker?

We know. Some estate agents have a bad reputation. And a few deserve it. But, most of the time, they perform a useful purpose and deliver a better result than a house owner could achieve on their own.

Let’s look at some of the reasons why and how this compares with business brokers and advisory firms.

They Both Know How to Promote

Understanding the legalities of selling a business is one thing, knowing how to market a business is completely different. A business owner, left to their own devices, probably either ends up selling to the only interested buyer, or taking a punt on one of the various cheap business listing websites.

Neither of these two strategies will reach the most valuable potential acquirers or create the competition needed to succeed in this marketplace.

They Both Know Where the Value Is

Most company owners are far too deep into the woods to see the trees. They take many of their most valuable assets – whether staff, intellectual property or clients – for granted. This is also true of householders, who so often focus on the superficial ‘froth’, rather than on what the buyer really will value.

A successful sale is usually made by an agent who has a laser-guided focus on what really matters, and ideally adapts this to suit the particular buyer.

They Both Know the Important of the Right Information

Bringing together the right information is about understanding what a business buyer is looking for. For a property you have a brochure and for a business you have an information memorandum. Both work as a prospectus for the buyer and both present your opportunity in the most attractive way.

What good would it be if your business details were filled with issues, concerns and mistakes? A good business sale advisor recognises that buyers need to be immediately attracted to the opportunity, so that they can develop a plan and vision for their acquisition. If concerns are raised further into the process, it is then much easier to tackle these issues as and when they are raised.

The right information is not all the information – it is the best information presented in the most favourable light which can be supported or verified if called into question.

They Both Know It’s a Balancing Act

Every Estate Agent or Broker will claim that they only act in the best interests of the vendor. They will maintain, until their last breath, that this is indeed what they do. However they also recognise that sometimes the best ‘deal’ is already on the table, and that the business seller may need to come to their senses to get the deal done.

Completing a sale can require a dose of realism, particularly from the business seller. A strong attachment to a business can sometimes cloud judgements, and a good broker can sometimes provide the ‘smelling salts’ to help an owner come to their senses.

They Both Know How to Close

When it comes to the negotiation and ultimate sale of your business, there’s nothing like having experience of being there before, which is where a business broker really comes into play for you.

They know how to qualify people, to respond to concerns, to introduce further information where needed and to introduce competition. All of these ultimately improve the chance of sale and improves the sale price.

A good Business Broker, like a good Estate Agent, will probably secure the most favourable deal for you.