Selling a business is unlike selling a car or a home. You’ll need some help. Here is why you hire Elan Capital to sell a business in Texas.
How To Sell A Business in Texas
What do business brokers do? Very few people seem to know.
Business brokers are intermediaries who facilitate the sale of small and medium sized privately held businesses by working with both buyers and sellers. There are important differences, but in some respects business brokers operate similarly to real estate agents; however their practice is limited to business entities and the knowledge of the complexities of a business sale.
Business brokers can represent either the buyer or seller in a sale. Historically, the broker has traditionally represented the seller, but buyer representation is becoming more common.
How To Sell A Business in Texas – Use a Broker
Business Brokers are an important component when it becomes time to sell a business in Texas. Here are just a few of their duties:
- Pricing the business with a professional business valuation.
- Creating an offering summary, sometimes referred to as confidential business review. This review becomes one of the most important marketing tools for selling a business, and is provided to prospects only after they have signed a confidentiality agreement and heave been qualified as a legitimate buyer by the broker.
- Marketing the business to the widest possible audience while maintaining strict confidentiality. This is one of the important distinguishing differences between business brokers and real estate agents. Real estate agents put a sign in front of their properties and operate without the need for confidentiality, where business brokers are trained to maintain strict confidentiality.
Introducing prospective buyers to the business owner after insuring confidentiality agreements have been properly executed.- Facilitating meetings between the seller and potential buyers.
- Writing offers to purchase the business. These are much more complex than a home sale as there are other factors such as employees, equipment, inventory and more.
- Facilitating the due diligence investigation. Offers to purchase are almost always made contingent upon a further due diligence investigation being completed. This is an important broker function.
- Handling negotiations between the parties after an offer has been made.
- Assisting the buyer in obtaining business acquisition financing. This can’t be understated. During negotiations, the buyer may need additional funding, and a business broker will help secure the funding.
- Scheduling and facilitating the closing of the transaction and all the associated paperwork.
How To Sell A Business in Texas – 5 Important Ways Elan Capital Can Help
- Finding Qualified Buyers – Not everyone who is looking to buy a business here in Texas, actually lives here in Texas. A broker had access to buyers around the world. Additionally, potential buyers never like to discuss their financial positions with a seller. A knowledgeable business broker will ask the right questions of prospective buyers, and this helps determine whether the buyer has the commitment, experience, and financial capability to finalize the business transaction.
Confidentiality – Confidentiality is absolutely critical to the successful transfer of a business. If it becomes known that a business is for sale, several things start happening and none of them are beneficial for either the seller or buyer of the business. Business brokers are keenly aware of this and are experts at maintaining confidentiality.- Negotiation Help – Mediation is an effective method of lawsuit settlement and dispute resolution. Mediation typically ends in conflict resolution and the method is efficient enough to keep many cases out of court. Mediation during a sale of a business is no different. The process works as a buffer between adversaries during a sale, and it removes the emotional component from the negotiations. This service provided by a business broker can help to reduce the turmoil often found in the negotiation phase, and can help prevent a good deal from falling apart at the last minute when things get heated.
- Valuation – The issue of proper business valuation is of critical concern to both buyers and sellers of businesses. Business brokers are professionals in determining the most probable and fair selling price of a business.
- Financing – No one will argue that business acquisition loans have been difficult to obtain in the current economy. Business brokers stay informed as to the types and new sources of loans that are available and assist buyers in arranging financing. This can be very helpful in closing the deal for the seller.
Selling a business here in Texas? Elan Capital Inc, with offices in Dallas, San Antonio, Austin, Houston, El Paso and Lubbock can help.
Call us today for a consultation and see why we are the fastest growing full service business brokerage firm in Texas.
888.615.1418
