Introduction
It pays off when you sell off your business for the highest price. This is a business that you struggled and toiled to put up, and even build it up. It took a lot of time and resources to do this. Therefore, getting the right buyer for it is a definite thought and desire. This can be difficult especially when you are not in what people call the hot industry, or when you are also in lack of unsolicited offers. This is when the business broker comes in.
Business broker
A business broker kind or resembles the real estate agent in terms of what they do. Business broker acts as a match making services provider through enjoining the buyers and the seller and bringing them to the same table. When looking for the right business broker, you are basically looking for a person who will help your business achieve maximum dollar value when sold.
Finding the right one
There are a couple of things that you need to look for as well as do in your quest for the right business broker. One thing that you need to do is to get referrals. You can get this from a trusted source. Make sure you talk to the right people who have some good knowledge or experience in these areas. These can be your accountant, your lawyer and also your peers. There is also the International Business Brokers Association (IBBA) which is a non profit trade association of business brokers providing education, conferences, and professional designations and networking opportunities. It has over 1300 members and it also provides a professional certification process. Check with this in order to find a qualified and certified business broker. In your search, it would also be prudent to practice due diligence. This means that you check out the background, experience and the credentials of the broker before taking them on. Check their history for any complaints or law suits that may have been taken against them. Also, focus on the brokers who do this full time and specialize in it . they are bound to have a better database and experience when compared to someone who does this part time. A broker who is full time is able to bring much to the table which includes a network of contacts as well as a good understanding of the principles of business valuation. They will be worth your money. Also, if your company is in the millions in terms of net worth, consider hiring a merger and acquisition intermediary.
What you need to do
One of the prudent and wise things for you to do is to keep the sale of your business highly confidential. Avoid the losing of key staff and suppliers through lack of discretion. Make sure that your business broker has safeguards in place to protect your company in order not to disrupt business operations.
Also, keep in mind that selling business is very much like marketing your business. The zeal should mirror the one that was used to build the business. You should position the sale of your company properly in order to attract as well as motivate the buyers. One way of doing this is ensuring that your business has a marketing plan which is fully furnished with advertising strategies and the like. When it comes to money, a business broker’s fee ranges between 10 to 15 per cent commission of the sale price of the company. Do not pay an upfront fee for the assessment of the business value. Last but not least, do not make rush decisions when it comes to the selling. Refuse to be put in a pressure position by your business broker. Take your time when it comes to learning as well as clarifying things and details that you are not certain about.
