Thinking of buying or selling a business? Find out if you need a business broker in this blog
Not sure if you need a business broker?
Whether you’re new to buying or selling a business, or you’re a seasoned pro, hiring a professional business broker to walk along side you through the process is one of the best business decisions you’ll make. Business brokers are trained and experienced in providing the expertise required to execute a successful transaction and outcome. As you know, buying a business is much more complicated than simply buying real estate. While you may be able to navigate a real estate sale without the help of a broker, there are so many details that go into a business sale that it is best to have an expert to guide
The Role of a Business Broker
Business brokers are similar to real estate brokers, but for businesses. They offer listings of businesses for sale, they work to attract and identify buyers that are ideal buyers for your business, and then help you throughout the sale. The advantage to using a business broker is four-fold.
Listing and marketing your business.
They will list your business in a searchable database, making it easy for those looking to buy a business to find what they’re looking for. Business brokers will also work hard at marketing and promoting the business they have for sale, with a focus on finding just the right buyer. They’ll screen potential buyers to identify whether they are a good fit for your business before you speak with them.
Business Listing Confidentiality.
When you list your business with a business broker, you can do that with the confidence that it will stay confidential until you are ready to disclose the sale. Entrepreneurs interested in buying a business can search listings without having to divulge publically that they are interested in buying a business, and if you want to list your business for sale without your customers or employees knowing your plans, a business broker is the way to go. Typically, without listing with a broker, you will need to publically list your business for sale—which could potentially impact current customer and employee trust.
If you’ve never been through this process before, you may be surprised by the amount of paperwork required to complete the sale. Sellers will collect current business records to show to prospective buyers, and buyers may need to make business plan documents for lenders. The buyer will want as many documents as possible to evaluate the business during the period of due diligence, so collecting and organizing that data is much easier with the help of a business broker. A business broker will also work to coordinate efforts between other interested parties such as lenders and attorneys.
Liaison Between Buyer and Seller.
Anytime negotiations occur, it is helpful to have someone coordinating the efforts between the two interested parties. Whether it is modifying offers, negotiating terms, or questioning issues within the paperwork, the business broker will work as your buffer. This is especially important when buying and selling a business. The seller will likely have to work with the buyer after the sale for training and other transitional activities, so it’s best to leave the negotiating up to the business broker so the relationship between buyer and seller isn’t damaged by aggressive negotiations.
Choose Your Business Broker Wisely!
Make sure you choose professional business brokers who know the area you are working in. If you are looking for businesses in the North Florida area, the Emerald Coast Business Brokers are the area experts. They offer extensive knowledge about the local market, along with expertise in the buying and selling process. They have a broad variety of business listings and will work to find the ideal business for you. If you have a business to sell, they will help you with your business valuation to make the sale quick and easy. The advisors at Emerald Coast Business Brokers are experienced entrepreneurs that have completed many regional and national acquisitions.
If you want to work confidentially with one of our advisors, contact us to find out more. If you need a business broker, we are ready to help you buy or sell your business.