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.
Who is a Business Broker?
A business broker is a professional who helps people with selling and buying businesses. They are somewhat similar to real estate brokers to the extent that they try to put buyers and sellers together. But instead of real estate being sold, they focus on businesses, which is a much more complex exercise.
A reputable broker will guide their clients through every step of the selling process to ensure its success. They typically have years of experience and training in selling and purchasing various businesses and as a result can provide you with expert guidance, advice, and other resources that can save you time and money.
How can a business broker help with selling a business?
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 would include 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, calculate the goodwill value of your business, estimate future profit and find 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 that 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 one 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.