Are you planning to sell your business? Do you have to find a broker to sell your business? Learn the pros and cons of having a broker right here.
Entrepreneurs sell their business due to either negative reasons or positive reasons. But in most cases, business owners decide to sell their business to enter a new market with lucrative opportunities. Selling a business is a long and complex process, according to Emily and Blair. For this reason, many entrepreneurs prefer to use a broker who will perform all the tedious steps in selling a business.
You may decide to sell a business with or without a broker. However, selling a business without a broker entails a lot of responsibilities. For example, you need to know what your business is worth, you’ll handle all the paperwork, and it is your responsibility to pitch the business to potential buyers. If you don’t have time to perform all this work, you’ll need to assistance of a broker.
What is a Business Broker?
A business broker is any person knowledgeable about managing and running a business who could assist in selling the company. There are also expert business brokers you can hire.
A business broker works similarly to a real estate agent. The person’s job is to find a potential buyer and do all the paper works required. Inasmuch, all the process involved in selling a business is left in the care of a business broker.
You can find a legitimate business broker through reliable online sources. When looking for a broker make sure the person has the license to do so. You can check the individual’s portfolio, customer reviews, and determine if he is on the list of the International Business Broker Association (IBBA).
What are the Benefits of Hiring a Business Broker?
Hiring a business broker gives you peace of mind knowing the process of selling your business goes smoothly. They give you valuable perspectives to understand the opportunities and potential negative impact of selling your business. And if a problem occurs, it is the broker’s responsibility to find solutions and make sure that you could maximize your business’ ROI.
Not only do business brokers handle the issues that arise in the selling process, but they also do the necessary market research and paperwork. They assure that you get the value your business deserves. Moreover, they handle the day-to-day tasks involved in selling a business.
Business brokers also know the strategies of finding a credible buyer. They know who to choose and whom you could gain profitable sales. Likewise, you can guarantee that the potential buyer is not a scam.
What are the Drawbacks of Hiring a Business Broker?
The only drawback of hiring a business broker is the cost of their services. The services of business brokers, especially veterans in the industry, are expensive. Moreover, there is a risk of picking out a fraud broker. You can circumnavigate scam brokers by asking for help from reliable sources. Also, ask a friend, relative, or colleague for referrals. Do not engage with individuals claiming as brokers but fail to present proof of their work and a license.