Selling your business can be a joyful and exhilarating process if done correctly. After all, it is an opportunity to get rewarded for years and years of hard work. You also only have one opportunity to do it, which is why you need to be sure you maximize the value of your business when selling.
Beyond value, you want to be sure your company and your valuable employees have the right home moving forward. For these, and a number of other reasons, you need to hire a business broker to manage the sale process.
Five reasons you need to hire an intermediary when selling your business:
- Value expectation – before beginning the sale process you need to have a rough idea of the value of your business so that your expectation can align with the offers coming in. A business broker knows the market and can model up your business based on comparable transactions to give you a strong idea of what your company will fetch.
- Marketing – a business broker with help paint your business in the best light. They will prepare an offering memorandum, recast financials and ensure your company is well-positioned for a transaction.
- Buyers – business brokers have relationships with strategic acquirers and even private equity groups that are looking for businesses like yours. They can define your potential acquirer market.
- Negotiation –business brokers are incented to negotiate the best deal on your behalf. Having an advocate to guide you through the process will drive additional value.
- Due diligence – once a deal is signed an intermediary will help shepherd you through the diligence process from providing data to reviewing the purchase documents.
Start to finish the process is volitile and complicated. Having an advocate for selling your business can ensure that you can pursue the dream of an exit without having to spend countless hours fumbling through an unfamiliar process all while running the risk of leaving money on the table.