Most business owners sell only one business during their lifetime, so selecting a business broker is a task you may do just once, however your choice of broker can greatly influence the level of comfort you feel throughout your selling experience.
As you might not get a second chance, it can be useful to have an idea of the qualities you should be looking for in your business broker before you start talking with potential selling partners.
Whilst it can definitely be valuable to research a broker’s experience in a specific industry or location, as they may have existing networks that will supply a buyer for your business, the following can also greatly impact the success of your business sale:
Is the broker sincerely interested in you and your business?
Your broker will be representing your business to potential buyers, so it’s important they take the time to understand your business, why you’re selling, and your desired outcome from the sale.
The broker should be keen to build rapport with you, as selling a business can be an intensely emotional time for a vendor and you need to trust that the broker is acting in your best interests at all times.
How many listings does the business broker have on their books?
More is not necessarily better. If a broker is spread too thinly across many business listings, it may be difficult for them to give your business sale the time and attention it deserves.
A good business broker will work hard on selling your business by following up with interested buyers, cold-calling potential purchasers, arranging and attending inspections, and actively marketing the business, so the quality of service they can offer you is definitely more important than the quantity of listings they have on their books.
Has the broker presented their market value appraisal of your business?
A business that is priced correctly will sell faster. The best brokers have an intimate knowledge of the business environment from speaking to buyers and sellers every day and may also use sophisticated appraisal software to give you accurate advice on the likely sales price of your business.
You may not agree with the sales price a broker suggests, however it’s important that you consider the broker’s assessment of the market value of your business and be open to reducing the price later, if you don’t receive the offer you want.
What sales preparation does the business broker recommend?
Many business owners forget that effective preparation can make a significant difference to the sales price of a business.
An experienced business broker can work with you to identify the areas of the business that require upgrading before it goes on the market, whether that’s cosmetic building improvements, system upgrades, or working with a business advisor to improve your bottom line so that your business achieves maximum buyer impact, a quicker sale and a higher sales price.
How does the broker plan to promote your business sale?
A creative approach to marketing is the key to reaching more potential buyers and helping your business sale stand out from the competition. According to SeekBusiness.com.au it takes an average of six to nine months to sell a business in Australia, however some are snapped up quickly while other businesses sit on the market for years!
Most vendors expect their business sale to be promoted on the broker’s own website and other business listing websites, but a motivated business broker will also offer you a range of other online and offline marketing activities that can be tailored to suit the relevant industry sector, target market, and price point for your business sale.
Please see here for more information on preparing your business for sale.
If you would like to discuss the sale of your business, please contact our team on 08 8334 0600 or email firstname.lastname@example.org.