You’ve come to the end of the road or you’ve decided now is the time to sell your business. Important goals have been reached and you’re ready to tackle a new project or cash in and enjoy your retirement.
One problem could be standing in the way of you selling your business right now: the current economic climate. With the help of a business broker, you can navigate the complexities of the market and sell your business for the right price and move on with your life. Business selling should be left to the experts; read on and we’ll take a look at how one Virginia business broker can service your needs no matter where your business is located.
If you are looking for a business broker, you will want to do some research to find one that can meet your needs. Specifically, taking the following steps will help you find the right broker:
Interview Potential Brokers
Brokers can be found by searching the internet, scouring Yellow Pages listings and by asking other business owners who they used when buying their business. Plan on interviewing more than one broker to find one that can meet your needs and who has a process you feel comfortable with. No broker should guarantee that they will sell your business, but you need to feel comfortable working with that person. Don’t automatically settle on a broker who is very local to you either as you want someone who has the skills and contacts to strike a deal.
Ask About Their Network
Unlike real estate where realtors cooperate with each other to move houses, business brokers typically build their own listings and market directly to their pool of potential buyers. With this in mind, you’ll want to determine from the broker how strong a network they have. Ask for references from business owners who have used their services and contact these people to learn about their experiences.
Ask About Their Buyer Processes
Confidentiality is a key part of selling your business, you want to avoid word getting out to your staff, clients and suppliers before you are ready to make the announcement. Brokers should have defined processes that protect your confidentiality, ask the broker to describe this process fully.
Get An Independent Valuation
Although the business broker is able to place a value on your business, you should go ahead and get a third-party valuation to determine a fair price for your business. This will ensure that the broker is not low balling you, or allowing you to set the price just to get your listing and then give you the bad news later! Novars Group has on staff licensed evaluators that can give you a licensed valuation using over 8 valuating parameters. See our valuation section.
Negotiate Your Listing Contract
Most brokers will want you to commit to a twelve month contract to sell your business. Instead, you should ask for a six month commitment especially if you have a good listing. The more marketable your business, the quicker it should sell — even in a down market, people still want to own their own businesses and will be eager to strike a deal. Make sure that you and the broker agree to keep in regular contact — a weekly update of your activity should be provided.
If you are considering selling your business, then why not speak with the professionals with the Novars Group to learn what they can do for you? Only accredited brokers are part of our team, people who understand current market trends and what it takes to move your business.