WHY A PROFESSIONAL BUSINESS BROKER?
Selling a business is rewarding, but negotiating a successful sale be can extremely complicated and emotionally taxing for the business owner. You’ve spent precious time, money, energy and ideas building your business into something you can be proud of. Now that you’re ready to sell, you deserve the best possible outcome, in terms of both your financial well-being and your overall peace of mind.
Professional business brokers provide expertise and advocacy for both sellers and buyers before, during and after the sale. Their expertise and objectivity will ultimately help you, the seller, maximize your final sales price and achieve the best possible results from the sale.
By using state-of-the-art marketing tools, generating buyer competition, managing the transaction, setting clear timelines and coordinating with everyone involved—the lawyers, accountants, bookkeepers, bankers, insurance agents and business professionals—our brokers are able to control the flow of information, complete due diligence and close the deal.
Plus, working with a broker brings other benefits that are nearly impossible to achieve on your own:
Buyer Competition – When there is competition for something you possess, the possession increases in value. This can translate directly into a higher selling price, better deal terms and a faster closing period.
Exposing your business to as many qualified buyers as possible gives you the leverage to negotiate a better deal.
Confidentiality – Our brokers guard the identity of you and your business (with your permission) by making sure that information about your operation is available only to prequalified buyers who sign a confidentiality agreement.
Confidentiality is the cornerstone of protecting your business interests.
Objectivity – Often a business owner’s identity can become intertwined with that of the business. This is understandable; you’ve put years of hard work and passion into building it. This can be a hindrance when it comes time to sell the business, though. Because our brokers do not have the emotional attachment that you do to your businesses, we can provide an independent and objective valuation and help you navigate the sales process to arrive at the best possible outcome.
Picture yourself at the final end of the transaction. It’s a unique feeling handing over the keys to an enterprise you have worked so hard for.
Division of Labor – You, the owner, can focus on running your business while your broker does the market research, valuation, marketing, buyer qualification and ultimately quarterbacks all parties throughout the sale process. In fact, once the decision has been made to sell, it is vital that the owner stays focused on continuing to grow the business.
Every buyer wants to see a business growing.
Valuation- Every business has multiple variables that figure into the asking and ultimate selling price. Our brokers have access to an array of business transaction databases they can use as guidelines to determine the most probable selling price (MPSP) for your business. Creating buyer demand and having defendable data will encourage motivated and top-paying buyers.
We use Pratt’s Stats, IBBA data, BIZCOMPS, PeerComps and our own in-house custom valuation tools to get an accurate and defendable valuation.
Building Value – As part of your team, our professional business brokers will be able to identify areas of your business that need attention before being presented to potential buyers. Accurate accounting records, a clean balance sheet, up-selling existing customers, reducing discretionary expenses, diversifying customer concentration and reducing owner dependency are all areas where, as an owner, you can add immediate value to the business.
Business buyers almost always expect a well-documented operations manual.
Custom Marketing Materials– We start with a Blind Business Profile that highlights the fundamentals of your company and sells the benefits of buying your business, without identifying the name, location or anything else deemed confidential. Only after buyers have signed an NDA are they delivered a Confidential Business Overview that highlights further details about the business but not the detailed financial statements. These are only sent as part of the Confidential Business Profile. Each stage of the marketing process is designed to increase buyer demand and generate competition among multiple buyers for your business.
We utilize over 150 business websites to ensure maximum exposure.
Negotiation – Our brokers have excellent negotiation skills, and since their main function is to sell your business, they will get you a better deal without distraction. The faster the sale, the lower the risk of predatory competition, employee problems and customer defection.
We aim for a win/win transaction throughout.
Closing – Many a deal is lost at the final stages due to a failure of trust. The lack of full disclosure can destroy trust. Having an informed buyer who has been presented with all the information needed to make the final decision and ultimately close the deal can make all the difference to the final outcome. With all the information presented correctly and thoroughly from the beginning, the chances of successfully closing the deal increase exponentially.
Preparation in the beginning will pay off at the closing table.
If you are considering selling your business, contact us. We can help you determine the current value of your business and what steps you can take to maximize its appeal to a wide base of buyers. Together, we can plan and implement an exit strategy that will benefit everyone involved.
Please call 604 966 7111 or drop us an email at the address below.