Why Working With a Business Broker to Sell your Business Matters
When the owner or owners of a company are considering selling, they often believe the best method is to work on securing a buyer on their own. However, in nearly all cases, using a broker to sell your business is the better option. There are several advantages to working with a reputable business broker, some of which include:
• Matters of Confidentiality — One of the challenges you will face is keeping your company information confidential during the sales process. Confidentiality includes maintaining corporate insider information which, if released publicly, can damage your company’s future. Business brokers will typically only release information about your company to those whom they know are financially able to purchase your business. Additionally, a business broker can keep the name of your company from potential purchasers, which helps protect owners.
• Maintaining Internal Focus – The last thing you want is to have a potential sale disrupt internal processes. The focus of you and your team should always be continuing to provide the highest quality service to your customers. Should you be distracted by continually having to follow up with potential buyers, business growth takes a back seat.
• Contacts Matter When Selling – Chances are your network of other business ventures who are interested in buying another company is limited. However, business brokers act as intermediaries for numerous businesses that have other contacts. Since a business broker is always acting as an intermediary, they likely have a more extensive contact base. This means your proposal will get in front of more people in less time than if you were attempting to sell on your own.
• Price Tags: Business Valuations – Let’s face it, we work hard to establish a robust business, yet we typically do not know its real value. We understand what we have in terms of business, inventory, and goodwill. Putting a price tag on a company is a different matter. Business brokers offer a level of expertise that we often do not possess on our own. They can evaluate a business accurately based upon applicable variables considering the industry, sales, and age of the company. Other variables may include a client base and other relevant information that make a business appealing.
• Closing and Transition – One of the concerns any business owner has when selling a business is the potential for disruption after finding a buyer. Business brokers have extensive experience assisting in the timely closing of a business sale. They also ensure a smooth transfer of ownership with little disruption to supply chains, employees, and clients.
Finding the Right Broker Also Matters
Keep in mind, not every business broker will be able to help you with your quest to identify another buyer. You will want to find a business broker with experience in your industry and who has worked with comparably sized companies. Experience, expertise, and ethics all matter as well. Make sure your business broker has a solid reputation within the industry before you agree to any contracts.
Buyers and sellers often do not understand the marketplace nor the processes necessary for a successful business sale or purchase. Working with a broker to sell your business provides you with the necessary skills and expertise. It enables you to continue to work hard to develop your company. It is critical to maintain a focus on growth and the future, which can only improve the value. You do not want to lose focus on your business while you are attempting to sell and jeopardize its value.
Maintaining a steady cash flow, staying current on your financial obligations, and growth during the sales process are essential. Capstone Capital Group can help you retain the cash flow you need during this critical period. For more information on Capstone, please call us at (212) 755-3636 to speak with a representative about spot factoring, and other financing programs, which can help you maintain the value of your company during this crucial time.