Selling a business is a big decision. It is a large asset and most business owners have spent considerable time and money turning it into a success. A broker can make the selling process run smoothly. Selling businesses is their business and they have experience, procedures and networks in place to sell efficiently and for the best price.
For the business owner ready to sell, deciding on a broker can be difficult. There are many considerations, from fees to the personality of the broker. Here are three important points to consider that are rarely spoken about.
Broker’s Brand
How the broker’s brand sits in the market is an important consideration that is not normally talked about. The broker’s brand has a lot to say about their communication skills and the networks they have at their disposal. If the broker presents themselves in a professional manner, then they are bound to present a business, which they are selling, in the same way.
If the broker and their brand is well respected, then they will have no difficulty finding buyers for you, as people will want to deal with the broker due to their strong reputation. A broker who communicates well will build a respected, professional brand and use that brand to build networks in the business community, which can mean more prospective buyers for your company.
The fact that a broker can build a brand also proves that they are able to communicate clearly and present an asset in the best possible light. These skills will transfer over to any business that they are selling.
Broker’s Support
It is also important to think about the broker’s support. Buying and selling businesses is a multi-step process. From the first interviews with the seller to showing the business, negotiating a contract and closing the deal, the broker has many balls in the air. A broker with support behind them can juggle those balls with more ease.
Does the broker have administration staff to oversee paperwork and ensure buyer enquiries are answered and phone calls returned? Do they have technical staff to put the listing on the internet and make sure the website showing the listing stays live?
Does the broker have a firm of multiple brokers behind them, giving them a wide-ranging network, contact with different buyers and continual training and improvement of their skills? A firm with administration, technical and other support available has brokers who have more time to spend on what they’re good at, which is selling businesses.
Broker’s Experience
Lastly, consider the broker’s experience when making a decision. Finding out about their sales record is a good place to start. Then go deeper.
Do they have experience selling businesses in your industry? If yes, they will already have an understanding of your business and have contacts who may be interested in buying.
What was the value of the businesses they have sold in the past? If they usually sell businesses worth considerably less than the business in question, they may not have a solid network of contacts with the ability to purchase such a large asset. If they usually sell businesses worth considerably more, again their contacts may not be interested in a small asset and their attention may be on other sales with greater commissions.
A brokerage firm that regularly handles different businesses of various values may provide the mix of industry specialisation and a wide network of buyers waiting on the right business.
There are many other points to consider before signing with a broker, including their accreditation, testimonials and dedication. But looking at a broker’s brand, support and experience can give more insight into how they work and how successful they’ll be selling a business.
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