A business broker Orange County will be an important part of your team once you make up your mind to sell your company. The broker has sold many businesses before and knows what needs to be done to achieve desired results. Even so, most people choose to sell on their own. If you haven’t considered the option of working with a broker, here are the top reasons why you should be working with a broker during a sale.
Focus on the core operations of your business
The sale of a business is not as straightforward as most people think. There are so many things that need to be done right from business valuation and getting the paperwork ready to talking with potential buyers and helping them with financing. All this work can keep you from focusing on the core operations of your business. Needless to say, even when you are selling your company, you have to keep operations running else the value of your company will go down.
Business brokers Orange County sell businesses as their full time job. That means they have the time and resources needed to get your business to the right buyers and help with every step of the sale. It is also good to note that buyers trust listings by business brokers than those posted by individual sellers.
Effectively manage confidentiality
When selling on your own, managing confidentiality will be a bit hard. This is because each buyer you bump into will associate you with your company. What is more is that you don’t have the time to qualify each buyer that comes knocking at your door. It goes without saying that if people start learning that you are selling your company, problems will follow. Employees, suppliers, lenders and clients will leave you due to the fear of the uncertain future. As a result, the value of your company will go down thus causing you to sell at a loss.
A business broker Orange County, on the other hand, is not associated in any way with your company. He will create foolproof confidentiality agreements that buyers have to sign prior to getting information about your company. Brokers also know how to market a business without disclose vital information about it.
Help with negotiations
In the sale of a business, negotiations are usually heated. This is a business you have built from the ground up and buyers are not willing to pay the full amount for it. In that case, emotions will get in the way and keep you from making sound decisions. A business broker will help manage your expectations and negotiate with buyers objectively. He will get you the best deal without allowing emotions to cloud his judgment.
Working with business brokers Orange County is the best way to go when selling a business. You get to leverage on the experience of someone who has sold many businesses that are similar to yours. You only need to find the most recommended broker in the area.
A business broker San Diego is constantly involved in the sale of businesses. This is his full time job. He gets paid on a commission once the sale is completed. All in all, there is more you need to understand about a business broker. In this post, we shall be taking a quick look at the essential points you need to understand about working with business brokers.
They are your representative
The mistake most people make is that of assuming that business brokers San Diego will take over the sale completely. That is not true. The work of a broker is to represent you. What this means is that he cannot make any major decisions without consulting you. With that in mind, when hiring a broker, you must not just focus on the financials. You need to find someone with good communication skills and someone you can be comfortable working with for months. The right broker should fit your personality, lifestyle and future exit strategy.
You can negotiate on the fees
Don’t settle for the fee that is described in the first offer. As aforementioned, a business broker will charge a commission. The commission can be as low as 5% or as high as 15%. You should note that these fees are not fixed. You can negotiate the fee to a more favorable one. All in all, you need to take note that not all brokers will be willing to negotiate. This is more so if they have a great reputation.
Other fees may be charged
Although most brokers will charge you a commission which is a percentage of the selling price, other fees may be required. For example, a broker may ask you to pay an upfront fee. This is meant to show commitment and to pay for the initial expenses which include advertising and business valuation. Steer clear of brokers who ask for a huge upfront fee.
Due diligence on your part is paramount
Business brokers San Diego will not have all the answers. It is up to you to do your own research about selling a business. The more you know the harder it will be for you to be exploited. Do not rely solely on the support you get from a business broker. There is no harm in involving an attorney and a CPA. Taking time to understand the process of selling a business will further give you some leverage when working with a business broker.
Every business broker San Diego is different. It is your job as the seller to learn more about a broker prior to hiring. It is further highly recommended to hire a local business broker because he understands your market better.