The business owner is an expert at running the business but may not be as knowledgeable about the selling process. An intermediary/business broker can assist the business owner reach their goal of a successful transaction.
Procrastination and delay are critical factors when structuring a deal. Therefore, a business broker will continually move the process forward with qualified buyers, financing resources and ancillary associations to the deal such as CPAs and attorneys. A business broker is in a better position to perform this function than the owner as he/she is focused on the life cycle of the deal. The owner will be allowed to focus on operating a profitable business.
Selling a business is often emotional for the business owner. An intermediary will act on behalf of the owner and will establish a strong negotiating position without compromising the goodwill and relationship between the principal parties. An intermediary will increase the opportunity to receive “the best price” for the business.
A business broker is a skilled professional with established relationships within many professional organizations which are required to complete the transfer of ownership. These relationships will prove to be extremely beneficial to the business owner and the buyers.
An owner could experience disastrous results by “leaking” that the business is for sale. Employees, customers, suppliers and competitors’ relationships could be damaged causing an adverse condition hurting the potential sale. A business broker will preserve the confidentiality of the selling company during the process of marketing the business and only share information on a “need to know” basis.
A business broker will provide the business owner with strategic information regarding market timing, market conditions, market price, financing options, structuring the transaction and other information that is advantageous to the owner.
courtesy Murphy Business & Financial Corp.