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Why Should I Use a Business Broker to Sell my Business?

Written by: Tom Parsley

Article Overview: Selling the business you worked so hard to build is a very personal decision. Finding the right buyer can be extremely difficult if you try to do it on your own. Hiring a Business Broker to help sell your business and achieve the best possible price is worth the commission fee that they charge.

Why Should I Use a Business Broker to Sell my Business?

Selling the business you worked so hard to build is a very personal decision. Finding the right buyer can be extremely difficult if you try to do it on your own. Hiring a Business Broker to help sell your business and achieve the best possible price is worth the commission fee that they charge.

In exchange for their commission, your broker will:

1. Protect your investment in the business by placing the proper value on your business. Brokers can be a wealth of information when it comes to current market conditions, issues related to pricing and financing and many other facets of the business selling process.

2. Find the right buyer. A broker can bring more prospects to your business than you could ever do on your own. Finding the right buyer can be time consuming, and having a broker involved will you read the market, know who is buying and who has resources, and weed out the “tire-kickers” from serious buyers with sufficient financial resources.

3. Create a Marketing strategy by properly positioning the sale of your company to attract and motivate as many qualified buyers as possible.

4. Protect the confidentiality of the sale. They can ensure that the news of the sale remains confidential, and that loyal customers, staff, vendors and suppliers find out you are selling only when you are ready to let them know.

5. Handle all negotiations, and ensure that all transactions are legal. A broker will take care of all time consuming and legal paperwork and reduce the risk of missing a crucial step in the selling process.

6. Help make sure all your conditions are met and be your ally in the process. They will also see that the transition to new ownership is as wrinkle free as possible.

7. Will coordinate efforts between lawyers, CPAs, bankers, insurance agents, etc.

To find a qualified business broker, take these steps:

1. Visit online business-for-sale marketplaces to search for a qualified Business Broker to help you successfully sell your business!

2. Get referrals from a trusted source. Ask your accountant, lawyer, peers, and industry association for names of good business brokers.

3. Check with The International Business Brokers Association® (IBBA), a non-profit "trade association of business brokers providing education, conferences, professional designations and networking opportunities." IBBA has over 1300 members and provides a professional certification process.

Hiring a broker is a logical step in selling your business. You are an expert at running your business; brokers are experts at selling your business. The sooner you realize that, the better off you will be.

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