A business broker can often serve as the go-between between buyer and seller. We believe that hiring an experienced and competent broker tends to be a better route for most business owners than not. Small business owners are experts at running their business – they are not experts at understanding how to successfully sell a business.
Once you’ve got the research and logistical information out of the way, you will need to start marketing your business to let everyone know it is for sale. A good way to start is by reaching out to your professional network and letting them know that your business is for sale. Some sites will ask for listing fees from the businesses posting advertisements, while others will not.
How to Sell a Small Business Without a Broker (9 Steps)
This can be particularly challenging for small business owners who may not have the time or expertise to handle the complexities of the sale process. If you’ve never had a business valuation done, now is definitely the time to do it. Ideally, you should understand how buyers value a business well in advance of ever wanting to sell. With that said, get a business valuation before you embark on an actual business sale process. Marketing the business – creating a marketing plan and advertising the business to potential buyers through online marketplaces, social media, and other channels. It’s important to accurately determine the value of your business before you start marketing it.
When you hire a business broker, you’re effectively paying for the knowledge they’ve gained over similar deals in the past. This experience can help you work through the https://www.xcritical.com/blog/cryptocurrency-exchange-vs-broker-the-main-differences/ nuances of the deal, ensure you get a fair price, and bring in an array of contacts. When you sell a business without a broker, you have more control over the process.
Exit Planning
There should be a good reason to sell your company, so you don’t have regrets later. If your “why” is not strong enough, you probably will not have the will to do everything necessary to get your best deal. If you still have the desire and the means to improve the business, you should do so. The better you can make the business, the more you will be rewarded upon your exit.
Ask each potential buyer for a personal financial statement, in order to verify that the buyer has the ability to buy your business. The statement will list the buyer’s assets, which may include other businesses. A buyer may also provide documentation that they have financing to buy the business. This article explains why an owner may sell the business without a broker, and the steps that are necessary to close a sale.
Close or sell your business
These individuals present themselves as serious buyers and gain your trust so they can gain access to your business information and copy your profitable idea. They may poach your suppliers, contact any contractors you https://www.xcritical.com/ have working on the business, and even negotiate lower rates with your freight and storage providers. Having a potential offer waved in front of you can make it difficult to know when it’s time to cut your losses.
Any business owner wants a valuation, but they don’t necessarily want to share with buyers what that valuation is – they want to invite interest. A business broker can often serve as the “bad guy”/go-between between buyer and seller. Selling a business without a business broker will require a seller to develop this knowledge putting in the time and effort to learn the market themselves. As stated above, we believe that hiring an experienced and competent broker is typically in the best interest of most small business owners looking to sell their business. Just like in the sale of a home, a broker has an incentive to get-a-deal-done so they get a fee or commission. Business owners must be aware that this misalignment of incentives exists and that a bad deal for the seller can be a good deal for the broker.
Keeping The Sale of Your Business Secret
And at the beginning of the year, nearly all of them raised prices. Having an attorney is also an essential part of selling your business. All paperwork and legal documents are handled properly, so you do not have to worry about them. Make sure your buyer is qualified by asking them to show a personal financial statement. This way, you are not wasting your time or theirs if they cannot make a large purchase. If you have a potential buyer and they are in a solid financial position, do not delay the purchase.
