Simply put, a business broker is a professional who assists in the buying and selling of businesses. While there are many ways a business broker or advisor can help a seller maximize a business’s value, today we will focus on one in particular: business brokers help you maximize the value of your business by attracting multiple offers.
Why does getting multiple offers matter?
Receiving multiple offers for your company does not change the valuation of your business on paper, but it is a positive reflection of its value and desirability. As a seller, multiple offers can give you leverage when negotiating that you would not otherwise have. (That is, if those multiple offers are handled wisely.) While having multiple offers equates to a more complex negotiation process, it also increases the likelihood of your sale reaching a strong offer and a successful closing.
What is a business broker going to do to attract multiple offers that I cannot do myself?
To answer this question, it is first essential to understand the importance of confidentiality during the business sale process. For a business owner to effectively preserve confidentiality while attempting to widely market his or her own business is nearly impossible. Working with a business broker within the protection of a confidentiality agreement is the most reliable way to protect sensitive information and the integrity of your sales process.
In addition to the assurance of confidentiality, a business broker will likely have access to an existing buyer pool. At Viking M&A, we have our own network of thousands of prospective buyers. Between this network and the other interested buyers that we will reach by marketing your business via the internet, strategic direct mail pieces, newsletters and more, the likelihood of attracting multiple offers grows — all while taking the necessary steps to keep the identity of your business confidential.
If I receive multiple offers, what is a business broker going to do that I cannot do myself?
If a seller attracts multiple offers but does not have the specific experience required to expertly handle those offers, the advantage will be lost. A business broker will guide you through the process of evaluating all aspects of the offers. It is important to remember that the most important variable is not always the highest price; more so, it is identifying first, the buyer whose intentions line up with what you want for your company’s future, and second, the buyer who holds the required qualities to most likely complete a successful purchase. Business owners put their heart and soul into their companies, and when it is time to sell, a seasoned business advisor like ours at Viking will be able to not only attract multiple offers, but also help a seller identify which buyer is the best fit.
If selling a business is on your mind, reach out to us. We specialize in helping owners achieve the best possible outcome in the sale of their business. Our experience can help you avoid common mistakes, give you actionable insight on how to maximize the value of your business, and guide you through the process. Contact us today for a no-cost consultation.