The coronavirus pandemic has shifted many business transactions to online marketplaces. For example, TechCrunch explains that consumers are rapidly moving from department store visits to online platforms. You may be serving customers, managing employees, and working with vendors using online tools.
If you’re considering a business sale, there are a number of online marketplaces that connect buyers and sellers. However, your best option may be to work with a business broker if you want to save time and maximize the sale price you receive for your business.
POPULAR MARKETPLACES FOR BUSINESS SELLERS
Many business owners head to online marketplaces when they are trying to sell. They’re a great option if you expect your business valuation to be under $100,000 – $200,000 and cannot afford a broker fee.
These popular sites are easy to use, and attract a variety of potential buyers, but they have some important drawbacks. The following are a few reasons why you may want to reconsider using an online business marketplace.
- It’s easy to get lost in the crowd
- Subscription fees can persist until a sale — which may take time
- Most of these sites lack certified business valuation professionals, potentially creating a devalued and inaccurate listing price for your business
- Online marketplaces create an impersonal selling experience
- It can be difficult to target the appropriate audience of interested buyers — many visitors to these sites are window shoppers, with no serious intent of purchasing a business
Considering the availability of these sites, using an online service may seem like a good option. However, will you list your business at a price that reflects the true value of your business? If you don’t have an advisor who represents your interests, you may not be able to maximize the sale price. The smartest option is to work with a business broker.
HOW BUSINESS BROKERS ADD VALUE
A business broker is a trusted advisor who is by your side during the entire sale process. While you’re busy running your business, a broker will manage the sale process and keep things moving on your behalf. A broker can help you with a number of issues:
| Using Industry-Specific Knowledge
Every industry is unique, and you can find a broker with experience in your field. Knowing what potential buyers want, an expert can structure your business to make it more attractive. Brokers understand the seller’s motivations and the potential obstacles to a sale.
| Making Business Improvements
A broker can help you organize your records and use technology to automate your business’s manual processes. She or he can identify ways for you to increase sales and better control costs. Making business improvements will increase the sale price you receive.
| Implement A Formal Marketing Plan
Brokers work to understand why your business is attractive, and they create marketing materials to promote company value. Experienced brokers work their networks of contacts to find purchasers and determine if a potential buyer has the financial means to close a transaction.
| Managing Due Diligence
Due diligence is a time-consuming process, and a broker can manage it so you can operate your business unhindered. Your broker will ensure that any potential buyer signs a non-disclosure agreement before documents are reviewed, managing the document flow to the purchaser.
| Negotiating The Price
The biggest value a broker can add is the sale price negotiated for your business. Brokers use their industry experience to analyze the sales of similar companies and determine a reasonable sale price. Your broker negotiates the final price on your behalf.
An effective business broker can make all the difference in a company sale, and the experts at Raincatcher can help you with your transaction.
THE RAINCATCHER METHOD
Raincatcher has worked with hundreds of owners and understands the time and effort you put into growing your business. When it’s time to sell, rely on Raincatcher as a trusted advisor.
We use a team approach, which may include an exit advisor, valuation expert, accountants, and attorneys, and also uses a proprietary valuation system to value your business and establish a sale price.
Raincatcher’s new Sell By Owner program even allows business owners with smaller companies and lower valuations to capitalize on our professional tools and certified valuation experts. You can get everything you need to carry out the sales process on your own without worrying about traditional brokerage fees.
One happy customer has this to say about our Sell By Owner program:
“I used Raincatcher’s Sell By Owner Marketing & Listing program to save some money when I decided to sell my little coffee shop. The business isn’t overly complicated and you first start out with several hours of online training to prepare you to sell. They show you basically everything you need to know to market it, how to prepare your financial records and then how to prepare for what the buyers will ask you for. I then marketed it the way they told me and I had at least 25 requests, 4 offer letters and I was able to leverage those multiple offers into a cash offer and close in 6 weeks from start to finish. I’m really happy and I saved a bunch of money.” – M Ellefson
You’ve worked hard to build your business, and you shouldn’t have to rely on an online marketplace to sell your most important asset. Work with Raincatcher and let them manage the toughest details of your business sale. You’ll save time, receive a higher sale price, and have peace of mind.