Sometimes referred to as business intermediaries, business brokers are professionals who bring together buyers and sellers of privately owned companies. Typically the client businesses of a business broker are Main Street businesses or middle market companies with revenues of less than $ 10 Million and values of less than $4 or $5 Million. Business brokers negotiate sales of business ranging from manufacturing or distribution companies to neighborhood restaurants or even revenue generating websites and other intellectual property.
There are typically four main reasons why a business owner would enlist the services of a business broker when looking to sell a business: Pricing, Confidentiality, Marketing, and Time.
Business brokers understand how to price businesses for sale. There are three main ways businesses are valued or appraised and a business broker can help you determine which method is most applicable to your business and where you should set your asking price compared to those values.
Business brokers understand how to maintain confidentiality during the sale process. If a business owner puts a “for sale” sign in the front window of his establishment it won’t take long for customers, suppliers, and employees to head for the exits. Buyer prospects need to undergo a strict screening process and sign confidentially agreements before a business broker will release the details of your business.
Business brokers know how to market business for sale opportunities through a variety of venues; and the smart ones know that today the best venues are online. There are dozens of strategies to market an opportunity. When hiring a business broker to represent your business be sure to ask them how they’ll be attracting buyers to your opportunity.
Business brokers know how to respect and protect your time. Industry statistics tell us that less than 3% of all buyer inquiries on a business for sale ad every purchase a business and most that do won’t purchase the first business they inquire on! Having a third party interview and screen buyer candidates will save you a lot of time so that you can continue to work on your business while it is for sale. On average business sales can take 6-18 months to close from the time the listing agreement is signed.
About the Author:
Kelcey Lehrich is a business intermediary with Confidential Business Sale which has offices in Cleveland, Pittsburg, and Detroit. In addition to his work with Confidential Business Sale Kelcey also works extensively as a consultant in the franchise industry. Kelcey’s work in franchising includes franchisor development, sell-side franchise sales, and buy-side franchise consulting. Lastly, Kelcey is also an Area Director for AmSpirit Business Connections, a national business networking organization that assists sales representatives, entrepreneurs, and business owners succeed by creating a forum where they can exchange qualified referrals with other professionals.