You have spent years and in many cases decades building up your business. You are now ready to sell your largest asset but you have several questions:
- Why should I use a business broker? I know my business better than anyone, shouldn’t I try to sell it?
- What is my business worth?
- How long will it take to sell?
- How do I keep my employees, customers and competitors from knowing the business is for sale?
1. Why should I use a business broker?: I know my business better than anyone, shouldn’t I try to sell it? A business broker will perform much of the leg work in the selling process, so you can continue to focus on growing your business. Selling a business is time consuming. You can’t afford to have sales drop, because you are focused on the sale of the business and not the business itself.
You will be actively involved in the sale process, including talking with potential buyers. Your broker will coach you on what to say and what not to say. Your broker will get your business global exposure while at the same time keeping the sale confidential. More exposure equals more interested buyers, and in most cases, this will lead to a higher selling price. It is estimated that a business sold by a professional broker will sell for 20% more than a business sold by the owner. Business Broker Experts has relationships with preferred SBA lenders across the U.S., which means the Seller will not be the major note holder in the business sale.
2. What is my business worth?: When confidentially consulting with a Business Broker Expert’s broker you will receive a FREE, no obligation, Brokers Opinion on what your business is worth. Yes, financial performance is very important, but it is not the only factor buyers analyze. There are 8 main drivers of company value we examine when giving a brokers opinion on the value of a business. We look at all 8 value drivers to determine a Value Builder Score for a business. The Value Builder Score will be between 0 and 100. A study of 20,000 businesses showed that companies achieving a Value Builder Score of 80 (out of a possible 100) go on to sell at a 71% premium compared to an average-scoring businesses. You will also have access to your Value Builder Report, a 20 – 30 page report specific to your business to show you the strengths and weaknesses of your business based on the 8 Value Drivers of a Company and your Value Builder Score. The report can be used to improve the areas you score low on. This will not only increase your chance of selling, but can also drastically increase the sale price of your business.
3. How long will it take to sell?: Selling a business is not easy and is not a quick process. We tell clients to plan on a year to find the right buyer. Once in a while we can get a business listed and closed in less than 6 months, but this is not the norm. There are many steps that have to take place from the time you decide to sell until the time you leave the closing with a check. Nationally, only a small percentage of businesses successfully transfer hands. One of the largest websites that lists businesses for sale is BizBuySell (which is one of the places we will advertise your business). BizBuySell can have 30,000 businesses for sale at any given time. According to their recent Insight Reports, less than 2,000 transactions are closed per quarter. Experience counts in this business, so place your business in the hands of an expert!
4. How do I keep my employees, customers and competitors from knowing the business is for sale?: This is not easy, but very crucial! Unlike selling real estate, you can’t put a for sale sign in the window. All of our advertising is generic in nature and pre-approved by you. No confidential information (business name, location, cash flow, etc.) will be shared with a buyer until a comprehensive Non-Disclosure Agreement is filled out and signed by the buyer.
Business Broker Experts, Inc. 18-5 E. Dundee Rd, Suite 200, Barrington, IL 60010
Info@businessbrokerexpertsinc.com | Call Toll Free – 800-708-7605