Why Use a Business Broker In a Business Sale?

Any business owner who has sold a business on his or her own will tell you it’s a long, tedious and stressful process.  It consumes time and distracts you from the day-to-day operation of the business.  While your focus should be on maintaining or increasing the value of your business, all of your time and energy is directed to the sale process. 

That’s where an experienced, qualified business broker can pay huge dividends.  A professional business broker can help guide you through the complicated process of selling your business.  There are many areas where the business broker expertise pays off:

• Confidentiality. A business broker protects the identity of the company and only exchange information to buyers approved by the seller after signing a Confidentiality Agreement. This agreement binds the prospective buyer from disclosing any information on the operations of the business.
• Business Continuity. Selling a business is time-consuming for an owner who already is probably wearing many hats for the company.  By taking on the additional load of selling the business, essential functions will get less attention and possibly damage the business. The owner can maintain a focus on running the business when a broker is working on the sale. 
• Reaching potential buyers.  Business brokers have the tools and resources to reach the largest possible base of buyers. They screen these potential buyers to find the most qualified buyer that is well suited to the business and will be able to run it successfully.
• Marketing. A business broker can help present your company in the best light to maximize the sale price.  He or she has an understanding of the key values that buyers are looking for and can assist in identifying changes that can lead to a better selling price. 
• Valuing your Business. Putting a value on a business is far more difficult and complex than valuing a house.  Every business is different, with hundreds of variables that have an impact on the value. Business brokers have access to business transaction databases that can be used as guidelines or reference points. But the best way for a business owner to truly feel comfortable that he got the best deal is to have several financially viable parties bidding for his business, which is much more likely using the resources of a professional business broker.
• Balance of Experience. Most corporate buyers have acquired multiple businesses while sellers usually have only one sale.  An experienced business broker can level the playing field for a business owner by making his one and only business sale. 
• Closing a Deal.  Since the business broker’s sole function is to sell the business, there’s a much better chance that a deal will be closed in less time.  The faster the sale, the lower the risk of employee problems, customer defection and predatory competition.

Utilizing the services of an experienced, professional business broker allows the owner to focus on running the business reducing the risk of business erosion during the sale process.  A sale facilitated by a business broker helps maximize sales proceeds by involving a large universe of buyers in a confidential, competitive bidding process.

Why Sell Your Company?

Selling one's business can be a traumatic and emotional event. In fact, "seller's remorse" is one of the major reasons that deals don't close. The business may have been in the family for generations. The owner may have built it from scratch or bought it and made it very successful. There are times when selling is the best course to take. Here are a few of them:

1.  Burnout – This is a major reason, according to industry experts, why owners consider selling their business. The long hours and 7-day workweeks can take their toll. In other cases, the business may just become boring - the challenge gone. Losing interest in one's business usually indicates that it is time to sell.

      2.  No one to take over – adult children can be disenchanted with the family business by the time it's their turn to take over. Family members often wish to move on to their own lives and careers.

      3.  Personal reasons – Events such as illness, divorce, and partnership issues often force the sale of a company. Unfortunately, a forced sale does not bring maximum value. Proper planning and documentation can preclude an emergency sale.

      4.  Cashing-out – Many company owners have much of their personal net worth invested in their business. This can present a lack of liquidity. Other than borrowing against the assets of the business, an owner's only option is to sell it. They have spent years building, and now it's time to cash in.

      5.  Outside pressure – Successful businesses create competition. It may be building to the point where it is easier to join it, than to fight it. A business may be standing still, while larger companies are moving in.

      6.  An offer from "out of the blue" – The business may not even be on the market, but someone or some other company may see an opportunity. An owner answers the telephone and the voice on the other end says, "We would like to buy your company."

If you are contemplating the sale of your business, or small business ownership, feel free to give the Sunbelt Nanaimo office a call at 1-877-289-0969 or visit our website at www.bcbusinessbroker.ca or www.sunbeltnetwork.com/vancouverisland. We have serious buyers looking to buy a business on Vancouver Island.