As you plan to sell a business, you need to be aware of various challenges and risks associated with it. Business brokers come into the picture to make the process safe and convenient for you. These people are also called intermediaries or business transfer agents who provide all kinds of assistance to the sellers and buyers of a business in the buying and selling process. They play a vital role in the whole process by estimating the value of the business, advertising it for sale without letting the identity get disclosed, handling the discussions, interviews and negotiations with prospective buyers, facilitating diligent investigation and helping to assist the business sale in every possible way.
When it comes to selling a business, a vital point to take care of is confidentiality. You need to make sure that there is minimum possibility of getting it out by your employees, vendors and competitors that your business is going for a sale. And here lies the importance of choosing a competent and experienced broker who will go for having a confidentiality agreement signed by the prospective buyers only after evaluating them first.
As you go to sell a business, it is very important to establish a price and this has to be the right price; if it is too low, you leave money on the table and if it is too high, nothing is going to happen. And here a business broker can play the key role. An experienced broker who has been involved in may be hundreds of sales, will have an intuitive idea about the marketplace. He or she will also have easy access to hundreds of proprietary transactions data base which will help you get a clear picture of the current market situations. It is the practice and skill set of the broker on which services of broker vary greatly.
Let’s take a look at how a business broker can make the selling process of your business easy and effortless:
A business broker helps a client in fixing up the most probable selling price valuation. However, it depends on the techniques used by individual brokers and this may vary greatly. Outlining the business of potential buyers, the broker develops a complete Information Memorandum on the company and it is usually a document of 15-30 pages. For the business brokers California, a prime job is conducting buyer searches and marketing the business to the potential buyers. They will then screen the buyers who have the ability to complete a purchase, coordinate negotiations and provide advice on deal structuring. The business brokers in California offer overall deal management service to help the clients through the total process. The best part, they will help to retain confidentiality of the sale. And for the whole process, they will charge a consulting fee.
But all said and done, as a business owner, how you would be benefited by hiring a business broker is that you will be allowed to stay focused to run your business through the entire sale process which would require 6 months to 12 months on an average to be complete.