Small business owners who plan to sell their business may have asked the following question many times: “Should I use a broker to sell my business?” A large percentage of small businesses fail to sell, so it’s only natural for people to evaluate if getting the services of a broker can help. In this blog, we will discuss factors that affect the sale of a business and if these are better fulfilled by a business broker or the business owner.
Knowing the Real Worth of the Business
In most cases, business owners have a higher estimate when it comes to the valuation of their business. Naturally, when the owner sets the value of their business, it often results in a price that is way more than the fair and actual market price. Remember that an overpriced business is a huge reason many of them don’t sell.
Getting a professional broker to evaluate the business and set a fair selling price increases the chances of a sale. Business brokers work on behalf of the owner and will seek out the best possible deal for the business.
Marketing and Advertising Exposure
There are business owners who choose to handle the marketing of the sale themself. By doing so, owners believe that this allows them to have better control of the advertising of the sale of their business. However, most business owners lack the proper training to sell a business. Businesses not listed through a broker often get very little market visibility.
Selling the business through a broker exposes it confidentially to its intended audience — interested buyers who are already in the network of the broker. Increased awareness means a higher possibility for demand, which can result in better valuation for the business.
Availability for Negotiations
Deals may not push through when a business owner is not always available to negotiate with the buyer. A broker handles buyers’ inquiries and ensures things are moving in the negotiations. Most owners’ time is spent running the business — and rightfully so. Getting a broker to handle the negotiations will make things easier for the business owner.
Broker’s Commission
Some business owners opt to handle the sale themselves to avoid paying a commission to a broker. While this can be understandable, it is also futile and inefficient. How can an owner expect to sell a business if they do not have the network to advertise the sale, proper training to market it effectively, and the availability to negotiate with potential buyers regularly? The right choice seems evident between saving from a broker’s commission but not making a sale and getting the best possible deal for the business through a broker.
Conclusion
In conclusion, we believe that getting a broker to sell a business is advantageous. You may ask, “How do I find a business broker to sell my business?” The NJ business brokers at Midway Business Brokerage are ready to guide you in every step of the process. We will help you get the best deal possible for your business. Contact us today!
