Your Business Yourself - NOT a Good Idea
The professional business broker
is key to the marketing of a business. He or she will prepare a marketing
strategy and offer advice about essential marketing tools: everything from
a business description to newspaper advertising. Business brokers, through
their data bases of buyer prospects, professional associations and other
networks, can get the word out about the business far more effectively than
any owner could manage on an individual basis.
The professional business broker
is experienced in handling the typical objections and negative "readings"
many typical buyers will raise. Does the business lack parking space? Is
its location less than ideal? The business broker has the skills to balance
negatives with positives, or to point out that what appears to be a disadvantage
is not always the case. in addition to skill, a business broker also offers
the seller convenience. Sellers often fail to visualize the number of buyers
calls they would have to field if handling the sale on their own. The business
owner working with a broker can continue managing his or her business at
the same time the selling process is underway.
THE BUSINESS SALE TRANSACTION
The business broker will be the
most vital advisor to sellers during any stage of the sale transaction.
Steeped in knowledge about negotiating price, terms, and other key aspects
of the sale, the broker will guide the seller each step of the way. During
the early stages, while the buyer is still considering making an offer,
the broker is the ideal person to follow up and keep the deal running smoothly.
Sellers working alone could lose bargaining effectiveness by doing the follow-up
Even though business owners handle
mountains of paperwork as a part of doing business, few of them have had
training in the specialized contracts and forms required for the sale of
a business. The business broker is an expert at sales transaction details.
This expertise will help guard against delays, problems, and- that worst
of all possible words- the "wrecked" deal.
The business broker will determine
the right buyer for the right business, focusing on those prospects who
are financially qualified and who are genuinely (or potentially) interested
in the type of business for sale. For locating and qualifying prospective
buyers, a business broker uses computerized databases to access comprehensive
lists of local, national and international buyers, all to increase the chances
of selling a business at appeal value and almost as important, to avoid
wasting the seller's valuable time.
PRIVACY AND CONFIDENTIALITY
When a business broker is involved
in the sale, bringing to the business only those prospective buyers who
qualify, it is also easier to maintain confidentiality during the selling
process. Until a purchase-and-sale agreement has been signed, most sellers
do not want the word to reach their customers, competitors, employees, or
even their bankers. A business broker helps by using nonspecific descriptions
of the business, by requiring signatures on strict confidentiality agreements,
by screening all prospects, sometimes phasing the release of information
to match the growing evidence of buyer sincerity and trustworthiness.
Professional business brokers provide all these vital services, and more
for the seller of a business. This is one time where "do-it-yourself"
just can't measure up- in terms of money, time, and the general success
of the sale. Being "Penny wise and dollar foolish" can cost you