What is a Business Broker and What Do They Do?
The sale of your business is a big event- both emotionally and financially.
You’ve worked hard to build a business for years, and the company may be the biggest asset you own. Selling your firm is a complicated and time-consuming process, and you need help from an expert.
An experienced business broker can lead you through the sale process and negotiate an attractive sale price.
What a Business Broker Does
Your business broker has been there before.
Brokers start by understanding the seller’s motivations, and potential obstacles to a sale. You may want to sell your business to fund retirement, or because you want to work fewer hours and not have the burden of ownership.
A sale can be derailed if partners have a disagreement, or if an owner is going through a divorce proceeding. A broker is your trusted advisor, and someone who can navigate these issues. The broker can work to put agreements in place that end disputes, and set up the business for sale.
Brokers work as advocates for the seller, and they will guide you through the entire process. Some steps in the process can be stressful, particularly when it comes to negotiating the purchase price and deal terms. If a buyer makes an offer that is lower than what you expect it is easy to take it personal and you may become frustrated.
The broker’s job is to maintain an objective view, and to be emotionally detached from the business. Your broker’s clear thinking will help you make better decisions.
The broker uses metrics and online valuation tools to determine the business price. Brokers understand the key ratios that purchasers use to assess businesses, and they understand the unique factors that impact your industry.
Brokers use their extensive connections to market the business, and to locate potential buyers. The ability to find multiple buyers can dramatically speed up the process of selling a business.
Your broker will vet potential buyers to determine if the purchaser can make a legitimate offer. This step helps a seller to focus on buyers who have the financial means to purchase the business
Due diligence can be complex, and brokers manage the process, so that the document review stays on track. The broker will maintain a document review schedule, and work with the buyer’s team to keep the review process moving forward. They also help you to answer buyer questions during this process to avoid having issues during this process.
If a buyer wants to make an offer, the broker negotiates favorable deal terms and the sale price on your behalf. This point in the process may cause the highest level of anxiety for a seller. With the broker’s help, you can negotiate a reasonable sale price and have peace of mind.
Most important, brokers work to maintain confidentiality throughout the sale process. They assist with laws, regulations, permits, and licenses, so that the transaction goes smoothly.
Brokers add a great deal of value, which can result in a higher sale price.
How Business Brokers Add Value
Your business is unique, and you need an expert who can communicate why your firm is uniquely valuable.
Brokers use industry knowledge and marketing ability to find qualified buyers for the seller. An expert can explain how your business stands out, compared to other firms in your industry. Your broker presents your business in the best limelight and helps to educate buyers on why your business is attractive.
Brokers offer recommendations to help increase the value of the business in order to maximize value. You may be able to invest in technology, or change your marketing approach to add value before a sale. The broker’s goal is to ensure that the seller does not leave money on the table.
Emotions can run high, and your broker will act as a buffer between the buyer and seller. Brokers keep the due diligence process on track, and increase the likelihood of closing a sale.
A business broker is an essential team member who can help you obtain the maximum possible price for your business. Finding the right broker is critically important.
How Raincatcher is Different
At Raincatcher, we focus on the seller’s needs, and not our own.
A business sale may require some tough conversations. We will tell the seller the hard truth, so they can make the best decision about selling a business. At Raincatcher, we focus on providing the best advice about the market, industry, and whether the business is ready to sell. We want to put you in the best position to sell your business, whether that time is now or at a future date.
Our objective is to educate the seller about their options. If it makes sense to work on the business, we will recommend affiliates that we partner with to help the owner maximize the value of their business.
We’re experienced, and we’re passionate about business owners. Our team has worked with thousands of businesses, and we all have the small business entrepreneurial spirit.
We care. The phrase “blood, sweat and tears” is not a cliche in our company. Instead, it’s a literal statement about how hard our small business owners work to grow their companies, and we do not take that lightly.
Work With a Trusted Advisor
The Raincatcher team works with other professionals, which may include an exit advisor, valuation expert, CPA and accountants, and attorneys. The firm uses industry-leading proprietary valuation resources to value your business.
Raincatcher will operate as your trusted advisor throughout the entire sale process, so you can sell your business at an attractive price without regrets.
YOU MAY ALSO LIKE OTHER BUSINESS BROKERS RESOURCES