When you drive through a residential area, you often see signs in the yard indicating a home is for sale. You might walk through a mall or business district and see space for rent, but it’s unlikely you’ll see a for sale sign. Business owners often don’t want their competition, their customers, or their employees to know they’re thinking of selling the business. So how do people find out about the opportunity?
Once a business owner has decided it’s time to sell his business, he can choose to do it himself or he can work with a professional business broker. Unless the seller has been approached by an interested party or knows someone who might be interested, he has to go out and find a buyer. That can be a difficult and time-consuming task. That’s just one of the things a professional business broker does.
Finding Qualified Buyers
A majority of people in the United States have thought about owning their own business. Only a small percentage ever do. On average, for every prospective buyer a broker introduces to a business owner, the broker has usually met with between 10-30 prospects. Many want-to-be buyers don’t have the financial resources needed, are not a good fit, or are just “tire kicking.”
- A business broker acts as a buffer and allows the seller to concentrate on running the business rather than wasting valuable time with unqualified buyers.
- A business broker finds qualified potential buyers.
- A business broker negotiates the deal.
- A business broker works to help the buyer secure financing.
- A business broker helps coordinate all the paperwork required from both the buyer and the seller.
- A business broker sets up closing without anyone finding out until the deal is done.
- A business broker only gets paid when he sells the business.
The right representation can make the difference between closing or losing a deal.
It’s Your Decision
If you’re a business owner thinking about selling your business, you can certainly choose to do it yourself, but why would you want to?