Let’s be realistic, there are no guarantees when selling a business. You may not be able to find a buyer, sell within a specified timeframe or achieve the price you have in mind. But just like choosing the best estate agent to market your home, choosing the right broker to sell your business will offer you the greatest chance of success. Good business brokers will provide a hassle-free, personal service, based on years of experience.
We believe there are 9 ways in which brokers, like us, can take the pressure off you, when selling your business.
1. The Reality Check
For both seller and agent, valuation is an essential first step. A chance for a reality check.
For the business owner it will give you a realistic idea of how much you could gain financially from selling your business. For the Agent, it brings reassurance that the business is sellable.
A good broker will always explain the factors behind the valuation, which should be based on market experience and fair reasoning.
We believe trust and transparency are key at this stage. Valuation is our chance to help you choose the service package that’s right for you and your business.
Following the valuation, your appointed broker should ask you all the questions a potential buyer may ask. For example, are any of your employees key to the running of the business and what licenses you hold.
The Agent will then use all the information they have learned to write the sales particulars, demonstrating the benefits of the business to potential new owners.
It is a real opportunity to start building that all-important emotional engagement between a potential buyer and your business. It is vital that any sales details are well written and presented, and always approved by the client prior to publication.
Once the sales details have been agreed, it is time to list your business for sale. Good brokers will have a number of different channels available to them and help you choose the right ones.
We use four different websites, plus specialist sector sites, where appropriate. We also offer guidance on selecting the right listings and manage these on your behalf.
Good brokers will use their experience and expertise to connect you to the right buyers. They will market your business for you whilst you get on with the day-to-day management and development of your business.
We have various tools at our disposal which include our monthly eshot to our entire database. This is made up not only of potential buyers, but with other business professionals. The Solicitors, accountants, IFAs and more who are continually speaking with business owners. They are a key part of our working network.
5. Managing Enquiries
A good Agent will act on your behalf, using their experience to vet everyone who enquires on your business sale and weed out the non-genuine buyers. They will send out the sales details, make follow-up calls and gain feedback on your behalf, freeing your time in these early stages.
Once the genuine buyers have been identified, your broker will arrange for them to meet with you in person.
We can be present at the meeting, or advise you how to approach the meeting. The purpose of the visit is for the buyer to feel an emotional connection with the business.
Your Agent should follow up with the buyer/s after the meeting, to ask for feedback and see whether they would like to take their interest to the next level.
7. The Offer
All offers will come through your broker and they will know what you’re willing to accept or decline, and be able to negotiate any counter-offers on your behalf.
Once a sale has been agreed in principle, good brokers will produce what is known as a ‘Heads of Terms’ document. It is not legally binding, but makes life much simpler, setting out the agreement reached when the sale eventually passes to your solicitor.
As a seller you will naturally want some reassurances from the buyer, perhaps to request a letter of intent from the buyer’s lender, or proof of funds such as bank statements. Your broker will handle these requests on your behalf and continue to offer guidance as the sale progresses.
As completion nears, good brokers will remain in close contact with you, your buyer and both solicitors to ensure the deal completes to time and without any hitches.
They’ll act as a calm and steady influence throughout the whole process.
If you would like to sell your business with confidence, please get in touch.