You have decided to sell your Business for 1 or more reasons – it could be because you have decided to relocate or emigrate; you may want to cash in after many years of hard work and retirement; or you may have decided to move into a new venture.
Once you have made your decision to sell, you need to decide on the method you will employ to ensure a successful sale.
You only have 2 options to decide on –
1) Employ the services of a Business Broker or
2) Sell your Business yourself.
Having sold my own businesses privately in the past, and having owned my own business Brokerage and sold Businesses on behalf of clients, I am qualified to give an overview of the pros and cons of both methods.
Selling through a Business Broker:
– A qualified Broker can assist you with establishing the correct price for your Business in order to ensure a successful sale.
– Allows you the time to concentrate on running your business and preventing the possible declination of turnover and profits.
– A qualified Broker knows the most effective process to use from marketing your business, screening and qualifying leads, and negotiating the sale with an interested buyer.
– The Broker has the necessary documents to qualify potential buyers, and conclude a sale.
– Brokers usually charge a commission of 10% on the sales price of the Business. This could amount to a huge amount of money coming out of your pocket! You need to decide whether you are prepared to give away 10% of the selling price of your business!
– If a broker in a Brokerage needs to meet his target, or is short of personal funds, he or she may push you to accept a lower offer for your business to satisfy his / her needs.
Selling your Business privately:
– You know your business better than anyone. You are the best person to answer questions on your business. You also know the industry and can suggest ways of improving turnover and profits. You may also be able to point out future opportunities in the industry.
– You can save on the 10% commission charged by Brokers. The extra 10% could amount to a substantial amount of money, and will come in very handy with your future plans!
– The reason why most sellers do not sell privately is because they actually do not know how!
– They do not know how best to market their business for sale, how to qualify the potential buyers, what steps to follow, and what documents are needed. They also know that they will need to spend an unknown amount of money to have the agreement drawn up by an Attorney.
What if there was another option?
– You get a step by step guide to selling your Business;
– Your Business is advertised on a premium targeted site;
– You receive all leads yourself;
– You get all documentation to conclude the sale;
– You get access to telephonic support and advice from a qualified Business Broker;
– You pay 0% commission!