When selling a business, one of the biggest impacts on the process will be whether you use a business broker or attempt to navigate the sale on your own. As an entrepreneur, there is a natural instinct to figure out and handle many things yourself; on the other hand, seasoned business owners also learn to recognize when to hire a professional to advise on matters or handle them altogether.
Here, we have identified three clear indicators that you should use a business broker.
1. When you need to maintain confidentiality.
When confidentiality matters, business brokers are a must. Working with an intermediary is the best way to maintain confidentiality while selling a business because business brokers can market your business, field inquiries, and reach out to prospects without ever disclosing your name or the name of your company.
If you are not sure how much confidentiality will matter to your sale, it is important to recognize that confidentiality is always crucial when selling a business. Competitors can try to use the information to sell against you, customers can begin to doubt your business’s ability to serve their future needs, and employees may question their job stability. Confidentiality protects you, your employees, and your business.
2. When you still need to run your business.
Unless you are already completely removed from all company operations, you will still be responsible for running your business while you try to sell it. That may seem like an obvious statement, but we have seen too many owners fail to consider the time and energy required to independently navigate the sales process. Business brokers provide a buffer between the business owner (the seller) and the buyer. Remember that your time and energy are valuable and finite. Diverting that time and energy to a DIY sales process will inevitably impact other areas; most likely your family or the business itself.
Consider the due diligence period alone. Requests for information during this time can be cumbersome and having a business broker to counsel and assist you will make a world of difference in the load you carry. Additionally, although most deals that make it to the due diligence period will indeed proceed to closing, remember that your business is not sold until the sale has officially closed. Business brokers can continue to collect new inquiries and keep the sales pipeline open, just in case.
3. When you want to maximize the value of your business.
Perhaps you are already confident that your business is maximizing its potential value. But, when it comes to business valuations, it is helpful to remember you don’t know what you don’t know. This is where experienced business brokers can give you a leg up on maximizing the value of your business. While you are likely an expert in your particular area of business, business brokers are experts in buying and selling businesses. This is an important distinction, and one that can help you achieve top dollar while also increasing the chances of a quick sale.
Take Viking for example: having sold more than 700 businesses over the past 25 years, our business brokers have a wealth of experience from which to draw and have seen what factors tend to increase or decrease value. This kind of experience means your business broker can provide you with actionable insights on how you can improve your business’s value and make it more attractive to potential buyers.
If you are still wondering if you should use a business broker, consider reaching out to Viking to discuss how our business brokers can help you sell your business. Contact us today for a no-cost consultation.