If you’re a business owner, you’ve probably seen posts or ads claiming you don’t need a broker to sell your business. “We can find you a buyer at a fraction of the cost.” And it’s a tempting thought; you’ll probably save money on a commission… If your business sells.
But speaking from experience, you’re a lot less likely to get the price you want for your company and a lot less likely to close a deal without a professional intermediary on your side. Ask yourself these questions.
Do I have the skills and experience to sell my company on my own?
For most owners, selling a business is a once-in-a-lifetime experience. It’s almost always the largest transaction of their lives, as well. That means you only get one chance to get full value for what you’ve worked so hard to build. Selling a business is much more complex than selling a home (and you had a realtor to help with that) It’s a process that can take months, with many details and deadlines that must be executed perfectly and on time. If something is missed, the deal might never happen.
If you’re dealing with a strategic buyer or private equity firm, you’re dealing with people who buy companies for a living. They’ve been through the process many times and will be looking to make the best deal possible for themselves and their investors. Without a broker to represent your interests, you’re on your own, counting on the kindness of strangers and Google research to make sure you get it right.
A good broker ensures no detail is overlooked in your transaction, saving you from costly mistakes that could amount to tens of thousands of dollars. By leveraging their expertise, a skilled broker secures better offers, negotiates fairer terms, and facilitates faster, smoother closings—making their fee an investment that often pays for itself.
Do I have the contacts to find the right buyer?
Unless you’re selling to a family member or a competitor, the person who buys your business will be someone new to you. Finding buyers is our job; professional brokers have hundreds of qualified and motivated buyers in their database who have told them exactly the kind of business they’re looking for.
A broker’s goal is to find the right match for your company, and then find a couple more serious prospects. The only way to know whether you’re getting the best offer for your business is to have more than one offer on the table. Then, you can choose the price, the terms, and the buyer that is the right fit for you, your staff, and your legacy.
A broker will also have a network of professionals, including attorneys, lenders, estimators, and others who understand how deals get done and have a sense of urgency about getting things right and closing as quickly as possible. Your local banker and CPA may not have the expertise or the time to ensure everything is done when and how it should be.
Do I have the time to sell my business and run it, too?
Probably not. Selling your company will take months between screening prospective buyers, responding to information during the diligence process, and finalizing negotiations. Most owners simply can’t manage the process themselves without taking focus away from their business. And if your business starts to lag or become less profitable, it will be worth less to a buyer, defeating the purpose of going it on your own.
A broker has processes in place to manage the deal at every stage and keep it from falling apart. They’ll spend time with you upfront so they have all the information they need for prospects – taking care of requests for information so you don’t have to. They’ll ensure the sale remains confidential, so your staff stays focused on doing their jobs. And we’ll screen out any buyers who aren’t serious or don’t have the financial means to make an offer that works for you. We’ll help you avoid costly pitfalls that can make the difference between a clean closing and a drawn-out mess that risks your retirement.
Do you absolutely need a broker to sell your business? Not necessarily. However, savvy business owners know the value of finding the right partner at the right time to maximize their success.
If you’re curious about what your business is worth, click here
