04 Aug Top 11 Reasons to Use a Certified Business Broker to Sell Your Business
Spread the word. Business brokers are trained to sell businesses. And that’s what they do!
The TOP REASON to use a certified business broker to sell your business is that businesses offered through business brokers have a much higher listing-to-closing rate than those offered through realtors or listed directly by business owners.
In general, business brokers successfully close between one out of four and one out of seven listings. Real estate agents close about one out of 20 business listings. For sale by owner (FSBO) businesses close at a lower rate.
In Canada, Sunbelt Business Brokers closes 70% of its engagements to sell a business.
Business brokers sell businesses
Here are the remaining 10 of the top 11 reasons to use a certified business broker to sell your business.
Certified Business Brokers are trained to sell businesses. They are specialists who:
- Believe in the benefit of small business ownership as great way of life. Many have been business owners themselves.
- Follow a process that works for both buyer and seller and, with dual representation, are obligated to protect both parties.
- Know the market and have access to a database of active buyers—owner-operators, financial buyers and strategic acquirers—looking for businesses.
- Save time by prequalifying prospective buyers’ resources and potential for assuming your business, eliminating “tire kickers.”
- Possess a unique skill set: knowledgeable about valuation principles, financial statement analysis, taxation implications, inventory and goodwill issues, and so on.
- Are familiar with ways to optimize the value of the business i.e. operational, organizational and financial factors that move the business up the value chain.
- Understand how to package, position and confidentially market the business for sale; protocols for advertising, disclosing information and handling buyers in order to protect the seller and their business.
- Apply selling and negotiation skills to find solutions that achieve goals of both buyer and seller.
- Minimize risk: the lower the perceived risk to a buyer, the more a buyer can afford to pay and the more a seller will receive.
10. Facilitate the due diligence process and the preparation of closing documents, coordinating other service providers required to close the deal: lawyers, accountants, landlords, franchisors, lenders and insurance experts.