Why You Should Use a Scottsdale Business Broker and Not Try to Sell Your Company By Yourself.
Any business owner who has tried to sell a business on their own will tell you it’s a long, tedious and very stressful process. It consumes lots of time and distracts you from the day to day operation of your business. Instead of maintaining or increasing the value of your business, you end up spending a great deal of your time and energy trying to weed out non-qualified buyers and being involved in the sales process.
That’s where an experienced Arizona business broker can pay huge dividends. There are many areas where a business broker’s expertise can pay off:
If you attempt to sell your own business, you have a far greater chance of word getting out on the street that you are for sale. If this happens, employees, customers, suppliers and bankers will all get nervous and competitors will look to take advantage of that knowledge. A business broker will work hard to protect the identity of your company and only release information to potential buyers who have signed a confidentiality agreement.
It is vital that your sales don’t slip during the sales process. If they do, it will lower the value of your company and sometimes make it impossible to sell. With a business broker handling the sales process, you can maintain a focus on running your business.
Reaching Potential Buyers
Business brokers have the tools and resources to reach the largest possible base of buyers. It can be quite costly if you have to pay for all the advertising. Plus, not all inquiries are actual “buyers”. Many are tire kickers, some may be competitors, some are “bottom feeders”, some have no money and think a bank will automatically loan them money. Business brokers are experts at screening and getting rid of time-wasters.
A Scottsdale Business Broker can help present your company in the best light to maximize the sale price. They have an understanding of the key values that buyers are looking for and can assist in identifying changes that can lead to a better selling price.
Valuing Your Business
Putting a value on a business is far more difficult and complex than valuing a house. Every business is different, with many variables that have an impact on the value. Business brokers have access to business transaction databases that can be used as guidelines or reference points. Also, your industry will have its own special formula for figuring out what your company could sell for in today’s market.
Balance of Experience
Some buyers have acquired multiple businesses and are very experienced in the sales process. They can overwhelm someone that who has never tried to sell a business. For most sellers, this is a one-time only experience and it is only fair that you get the most for your company. This is where an experienced business broker can level the playing field. On the flip side, some buyers are first time buyers and need an experienced business broker to explain all the ins and outs of acquiring a company and to give them guidance.
Closing a Deal
Since the business broker’s sole function is to sell your company, there is a much better chance that a deal will be closed in less time than you trying to do it yourself. You’ll also have less stress, especially during the negotiation process, as it can get quite intense at times
If you would like to explore the possibility of selling your Scottsdale business, contact me at 480-707-7721 or firstname.lastname@example.org
Written By: Phil Reese
Phil Reese – Arizona Business Broker
7077 E. Marilyn Road, Bldg. 4 Suite 130
Scottsdale, AZ 85254