Seller’s Guide to Working With a Business Broker

Selling a business is no easy task, especially if you have never gone through the process before. You might think it's as easy as selling an old bike in an online marketplace, but no, it’s more… complex. That's where a business broker steps in, sort of like a matchmaker for businesses. They’re the experts who help find the right buyer for your venture, ensuring you get a fair deal without drowning in the nitty-gritty.

Business brokers are the right people to have in your corner in this high-stakes arena of business sales. They have the proper combined knowledge, skills and network to ensure your business is in the eyes of the right buyers.

In this guide, we’ll give you a comprehensive seller’s guide to working with a business broker. Whether you're selling your artisanal bakery or a tech startup, this guide will take you through the role of business brokers, why you should list with them, and how to efficiently work with them to sell your business.

What is the role of a business broker?

A business broker, in the simplest terms, is your representative during the business buying-selling process. Similar to how real estate agents help sell houses, business brokers are experts in businesses and dealing with business owners—the business that is the culmination of your hard work, goals and countless late nights.

A business broker brings expertise, experience, and an extensive network to the table. They understand the market, have a pulse on what buyers want, and more importantly, they know how to position your business so it shines in the best light.

The role of a business broker is multifaceted, but some key responsibilities they carry to help sellers are as follows:

• Valuation: Helps the seller determine a fair and realistic market price for the business through an appraisal.

• Confidentiality: Everything remains confidential to protect the business’ operations, staff morale and customer trust.

• Marketing: Promotes the business for sale through networks, websites, listings, and various platforms.

• Vetting buyers: Business brokers pre-screen and qualify potential buyers to ensure they are the right match for the business and genuinely intend to buy.

• Arrange viewings: Arrange and conduct viewings of the business with potential buyers while minimising disruption of current business brokers.

• Negotiation: Act as an intermediary during negotiations, ensuring that the seller’s interests are protected and get the best possible sale price.

• Handling of paperwork: Prepare and submit, as well as oversee all paperwork in regard to business transactions with contracts and legal documents.

Selling a business, especially if it's your first time, is a roller coaster of emotions and decisions. Having an experienced hand guiding you, offering advice, and being that voice of reason can be invaluable.

Why list your business for sale with a business broker

So should you work with a business broker? The short answer is, yes. Business brokers are the ultimate guide for business owners wanting to sell their business. They've done it before. Many times. They've got the expertise, the network, and most importantly, the knack for making your business look its best to potential buyers. Let’s take a look at the advantages of listing your business with a business broker.

They help price your business for sale

Having a business broker on your side will help make sure the deal goes off without a hitch. Starting with setting the price—there’s more to it than just putting a number down—too high, and you’ll scare off potential buyers. Too low, and you’re shortchanging your business. A broker, with their years in the field, has the intuition to nail that sweet spot. They use market data, recent sales in your market, and have a deep understanding of the industry to set the price just right.

They help find buyers

Sticking flyers outside your business window “For Sale” might garner some interest but it also opens up a can of worms with locals speculating, staff underperforming, and being in limbo of waiting for the business to be sold. When you list with business brokers they’re on the hunt and know how to fish out serious buyers from the sea of window-shoppers. This means you skip out on those time wasters and ultimately keep your business running.

They do the work while you run your business

Talking about running your business, with a broker by your side, you can do just that. Selling is a full-time job. From listing, to fielding inquiries, to setting up meetings, and handling negotiations. Juggling all this with managing your business operations can get, to put it mildly, chaotic. A broker takes off this burden, letting you focus on what you do best.

They negotiate on your behalf

Negotiations can be a tricky game. A buyer wants to get the best bang for their buck, and sometimes, this can lead to some pretty hardball tactics. A broker, with their experience, knows how to handle these situations. They can navigate the rough waters of negotiations, ensuring you get a deal that's fair and favourable.

How to choose a business broker to sell your business with

In essence, a business broker is more than just a middleman, they can be a great ally to have in a sales process and can be the difference between a smooth sale and a botched one.

So it’s just as important to choose the right business broker that will stick by you in your business sale journey. Consider the following when choosing a business broker.

• Years of experience – Look for someone who’s been around the block a few times. Selling businesses is a nuanced game, and having a broker with a solid track record can be the difference between a smooth sale and a drawn-out nightmare.

• Has a strong network – A business broker with a strong network can significantly cut down the time your business is on the market.

• Credentials & credibility – While experience is important, having a broker with the right credentials is a good backup. Look for memberships in broker associations or specific certifications in business valuation.

• Confidentiality – You don’t want word getting out prematurely about the sale. Choose a business broker that takes confidentiality seriously and is in it for the right reasons.

• Organised – Work with a business broker that has their ducks in a row so they can help you get yours in order. Working with an organised business broker they can help you prepare your business for sale and have all the necessary paperwork ready.

In the grand scheme of things, picking the right business broker can feel like a much harder process than selling a business. But with Kakapo Business, the choice is clear as day. Kakapo Business stands out as the most trusted and exemplary business broker in NZ. They aren’t just in it for the sale; they’re in it for the journey, ensuring every customer, every business, and every story is given the attention and respect it deserves.

So whether you're ready to take the leap into selling your business or looking for a market appraisal, give Kakapo Business a call. Contact us today and see what our team can do for you.