Selling your business? Here are 10 reasons to hire a broker to sell your business. Elan Capital knows Texas. Call us today for business services in Texas.
10 Reasons to Hire a Broker to Sell Your Business
When you get down to brass tacks, there are only 4 ways a business owner exits a business.
- You give it away, typically to a son or daughter.
- You close it and move on to something else.
- You sell it.
- You die.
At Elan, we hope you pick option 3, because we know we can help.
Here are 10 reasons to hire a broker to sell your business.
10 Reasons to Hire a Broker to Sell Your Business – Elan Capital, Inc.
Time is Money – While the business is up for sale, you still face the day-by-day business transactions that must be carried out. Busy owners often don’t have the time to properly handle all of the tasks involved with selling a business. By hiring a professional broker, owners can focus on keeping their business reputation intact.
Pricing – You have put blood, sweat and a few tears into your business. Of course you want the highest price for your business. In order to determine the best price, a professional broker will use industry-tested valuation techniques and ratios based on recent sales of similar businesses.
Structure – Another critical factor in pricing a business will be the deal structure and terms of the deal. The broker will work with your financial advisers (accountant and attorney) to achieve the highest amount of net proceeds after the sale. While the selling price is important, the amount that you receive when the deal is completed, is what is really important, and this has as much to do with the structure of the deal.
Buyer Financing – The cost to purchase an established business is often very large. A motivated buyer may not have the all the initial funds to achieve ownership of your business. A qualified business broker can utilize their skills in discovering the financial aid available for qualified buyers. They are familiar with both grants and loans that can be pursued if needed to “seal the deal”.
The Offering – A buyer will require information on the business they are looking to buy. They will want to look at the business activity, history, customers, sales, net earnings, marketing strategies, employees, assets, and facilities as well as the reason for sale. A professional business broker creates an “Offering Memorandum” to present this information in a coherent, packaged report. This will help a buyer make an informed decision and obtain the required financing to make the deal happen.
They Get the Word Out – Advertising a business for sale can be a chore. Plus, how do you take calls at your office without starting a mass exodus of talent? A broker handles all that. Elan takes that Offering Memorandum, and makes sure it is widely (but confidentially) distributed. Business buyers don’t grow on trees. A professional business broker will have a database of business investors, professional associations, investment groups and more to find prospective buyers. And speaking of confidentiality…
What Happens at Elan Stays at Elan – When selling, most business owners are terrified that customers, employees or competitors will find out their business is for sale. Professional brokers keep the confidentiality of each client. They are able to effectively advertise a business for sale without alerting the competition or any other entity or individual who may have malicious intentions.
Qualify the Buyers – Business owners agree. When attempting to sell their business, the one thing that business owners agree on is the time wasted with “the lookers”. Dealing with unqualified buyers is a sure waste of time (and time is money). The professional business broker knows how to focus on prospects who are financially qualified, genuinely interested and business oriented. Finding a a genuine qualified buyer is a skill that is developed through years of experience performing these types of business transactions.
Negotiation – Elan has a team of highly experienced negotiators and can really help you through this important step in the sales process. We’ll usually have a pretty good idea about what the buyers are thinking and a firm handle on what their negotiating strategy is. A good broker can help you get to an acceptable price for your business. We are very familiar with the best strategies to employ in order to arrive at a successful conclusion.
The Deal – Getting the deal closed is an emotional process and paperwork monster that invariably has ups and downs. The professional business broker will guide you through these cycles, as they coordinate the moving parts from valuation to closing. A professional business broker doesn’t make any money until the owner gets paid, so winding through this difficult process to a successful conclusion is the final basis for everyone’s success.
With offices in San Antonio, Austin, Houston, El Paso, Lubbock, and Dallas/Fort Worth, Elan combines extensive small business knowledge with a local personal touch.
Selling a business in Texas? After all the blood, sweat and tears you put into your business, you owe it to yourself to give Elan Capital a call.
Toll Free: +1 888.615.1418