Selling a business for a profit is typically the result of an owner’s hard work and dedication. However, finding the right buyer can be difficult if you’re not receiving offers or in a popular industry. To gain access to a larger buyer pool and a more structured sales process, consider working with a business broker.
Brokers serve as matchmakers between sellers and buyers, helping business owners get the highest prices possible. You can find out more at businessbrokersaustin.com. If you are not working with a broker already, finding the right fit requires some research as well as the tips listed below.
Ask for Referrals
If possible, start the search for a business broker with information from trusted sources. Ask your attorney, colleagues, accountant, and other professional contacts for the names of local business brokers.
Rely on the IBBA
The IBBA or International Business Brokers Association is a non-profit association that offers networking, education, and training through seminars and other opportunities. It’s also a great way to find local brokers who work with businesses like yours.
Perform Due Diligence
Just as potential buyers will do their due diligence, you should as well. Examine the broker’s professional background, credentials, and experience. Are they facing any complaints or lawsuits? Review their record with the Better Business Bureau and evaluate their references. Have they sold businesses like yours before?
Find Someone With the Right Focus
Business brokers who spend all their time on sales will bring more to the table than those who only work part-time. Full-time business brokers bring their professional networks as well as a deeper understanding of business valuation principles. When selling a business, find a broker who’s focused on their work. If you’re selling a multimillion-dollar company, consider hiring a merger and acquisition intermediary.
Keep Things Hush-Hush
When selling a business, it’s best to keep it a secret at first. By telling key suppliers and team members about the sale, you run the risk of losing them. A business broker should ensure that proper safeguards are in place to keep plans quiet—as informational ‘leaks’ can have serious repercussions on potential sales and daily operations.
Create a Marketing Plan
Selling a business is about marketing. Positioning a sale to motivate and attract buyers should be the primary goal. When choosing a business broker, ensure that their marketing plans include advertising strategies to attract a variety of leads.
Avoid Brokers’ High Upfront Fees
Business brokers’ fees typically range from 10 to 15% of the company’s sale price. Avoid brokers who ask for substantial upfront fees for valuations or to start the application process.
Stay Away From High-Pressure Sales Tactics
Don’t allow a business broker to lead you into a high-pressure situation, and don’t make a snap decision. The sale of a business is a complex process, both professionally and personally. Take all the time needed to learn about the procedure and get your questions answered.
Find the Right Broker and Make the Sale a Successful One
Whether you’re selling a small business or a multinational company, working with the right business broker may increase the chances of a successful sale. By following the tips in our guide, any business owner can find the right brokerage for their budget, needs, and business type.