What are the benefits of using a business broker to sell your business?
Do you need one? what are the added benefits to hiring a business broker instead of selling directly?
Just like using a real estate agent to sell your house, enlisting the help of a business broker saves you time, stress and can get the job done right. They take a commission of the sale price, but they do a lot of work that you may not have the expertise or knowledge of.
This covers things such as marketing your business, using their wide network to find the right pool of buyers or new business opportunities, doing their due diligence on potential buyers and bringing their negotiating skills and experience to the table. In any case, there is no downside to chatting to several business brokers, even if you end up negotiating directly with buyers to sell your business.
Why wouldn't you use a professional who plays in this space all day every day?
Granted, the cost/benefit analysis has to make sense in using any advisory service. That said, to think selling a business is easy is wrong. There are so many small steps and opinions along the way that can derail a transaction and no one party will know what happened. A Broker is in the deal with you, meaning we get paid when you do (the vendor).Everyone else gets paid on route. Therefore the role we play is really important in championing the deal so that it can actually finalise.
If the business is of size, where it is an income generating asset (as opposed to a salary replacement only), this must be treated with the respect it deserves.