Business Brokers: Who Are They & How They Can Help You
Making the decision to sell your business can be an overwhelming and risky process. business owners hire a business broker to guide them on selling their business.
Selling a business is a challenging and risky process to go through alone, which is why a lot of business owners hire a business broker to help them get the most out of this endeavour. Having a professional representative on board during the sale of a business allows you to delegate lots of complicated yet essential tasks while staying focused starting the process of selling your business.
But before you finalise your decision to employ a business broker, it is important that you understand exactly what they do, what sort of help they offer, and what you should look for in a business brokerage company.
What is a Business Broker?
A business broker is a professional who helps people with selling and buying businesses. Similar to real estate agents that bring buyers and sellers together, business brokers work their magic in the industry of businesses, creating connections that lead to exciting new ventures, which in a way is a much more complex exercise.
A reputable broker will guide their clients through every step of the selling process to ensure its success. These skilled professionals have honed their knowledge of the industry through years of experience and specialised training in buying and selling thousands of businesses. They’ve seen it all in the world of business sales and as a result can provide you with expert guidance, advice, and other resources that can save you time and money.
From start to finish, a reputable business broker will be your trusted partner, making sure that the entire selling process is smooth sailing and is a resounding success. They understand that each business is unique, and they tailor their approach to meet specific needs and goals.
Types of business brokers
There are more than one kind of business broker, each specialising in specific areas through their many years of experience and can cater to different types of businesses and transactions.
Here is a quick list of the business brokers you might find:
General Business Brokers: These brokers handle a wide range of businesses, usually small to mid-sized businesses from various niches and industries. Their services cover everything from business valuation to facilitating the business buying and selling process.
Franchise Business Brokers: Franchise brokers, such as in the name, specialise in selling franchises. They work closely with franchisors and potential franchisees, guiding them through the process of buying or selling a franchise.
Mergers and Acquisitions (M&A) Brokers: M&A brokers typically are involved in larger transactions, such as when one business is buying another business and the two companies are merging. These brokers often have experience in finance or law and deal with more complex transactions.
Commercial Real Estate Brokers: These brokers specialise in businesses that include real estate in the transaction from restaurants, hotels, or any business where the physical location is a key component of the business value.
Industry-Specific Brokers: These business brokers focus or specialize on a specific industry, such as manufacturing, retail, hospitality and childcare. Their industry expertise allows them to better understand the nuances of the businesses within these specialised sectors.
How can a business broker help with selling a business?
Every business is unique and every business owner no doubt would have put their time, energy and soul into the business to get it to where it is today. Business brokers like Kakapo understand what it takes to build a business and are here to make sure business owners aren’t doing it alone. A professional business broker can help navigate the complex world of sales and lift some weight off your shoulders.
Below are some key areas business brokers are happy to help business owners when putting a business up for sale.
Assist you with the right business presentation
Potential investors are willing to invest in a professionally run business and organisation. To get a good deal you must present your business properly. Business brokers will design a professional presentation package for your company that will help get desirable results. This package typically takes the form of a document that includes a detailed overview of the business together with financial, operational, and existing marketing information. Good quality photographs of your business would also be added to the presentation document as well as testimonials from customers, case studies, local industry, and customer profiles. This presentation is usually the first thing that potential buyers will see, so it is important that it leaves a great impression.
Help with finding potential buyers
Business brokers have the latest advertising, marketing, and sales tools available to them to make a business sell quicker and also attract high-quality buyers. Brokers also typically have a database of contacts that will allow them to find the most suitable and potential buyer for your business. Companies that sell with business brokers, sell faster and get a higher purchase price than when the business owners choose to do it alone.
Provide a proper business evaluation
Business brokers can help you establish a fair selling price. Rather than giving a rough estimation of the value of the business, a broker will examine your company thoroughly before evaluating it. They will take into consideration the size of your organisation, the number of employees, current clients, etc.
At Kakapo Business, we offer a no obligation, market appraisal of your business at any time. Our business valuation includes an analysis of your business finance, calculating the goodwill value of your business, estimating future profit and finding trends in your industry's market. Finding out how much your business is worth is an important part of the selling process and should be properly looked at by experienced business brokers.
Help with negotiation
Negotiating any type of deal is tough, even more so when it comes to negotiating the sale of a business. An experienced broker who is well aware of the potential risks can help you get through this stressful process with ease. They will ensure transparency with both parties and assist in the communication process. Business brokers will act as an intermediary to ensure that there are no misunderstandings and all questions are answered.
Assist you with paperwork
Buying a business requires a great deal of document chasing and coordination. Preparing the data for the business evaluation, the paperwork required to close a deal, and other vital documentation for the selling process can be overwhelming. Luckily, business brokers can help mitigate this. With their years of experience, they will guide and assist you all the way through this lengthy and complicated process, making it much smoother and less difficult.
Business brokers are some of the most important advisers a seller can have on their team. They will bring years of experience to the table, ensuring that the transaction is smooth, and both parties are happy with the deal.
Kakapo business brokers provide you with premium support and assistance throughout every step of successfully selling your business. For more information contact our Auckland business brokers or give us a call on 09 523 5070.