Would you self-perform surgery or go to a surgeon specialist to do it? You’d be surprised by the responses, but any rational person would hire a surgeon specialist to do it.
What’s my point? Hire a Business Broker and/or Business Intermediary to sell your business. Far too often I have encountered clients telling me disastrous stories on how they tried or did sell their business without any help but ended up a disaster.
What’s the next question I ask them: “Why didn’t you hire help to sell your business?”. Their response: “Brokers are too expensive.” When I dig into the details of what they did and then educate them on what experienced business brokers do, almost all of them regret not using one. Of course, you always have a few hard headed people to prideful to admit they were better off using a broker.
Based on all the above, I complied and identified seven (7) benefits to using a Business Broker or Business Intermediary:
- No Money Upfront Too Sell Your Business
You heard correctly! You do not and should not have to pay a business broker upfront money to sell your business. You can if you want, but you should not have too. In Florida, knowledgeable and experienced business brokers or business intermediaries will not require any money upfront for their services.
- Paid Only If We Sell Your Business
When does a business broker get paid? On the day your business gets sold, i.e. the day of Closing. What happens if the deal falls through on the day of Closing? Business broker does not get paid.
How much do you pay a business broker? Florida law does not establish the commission. It can always be negotiated with the business brokers. However, the industry standard in Florida is between 10% to 15% of the purchase price. Yes, this is more than what a residential or commercial realtor charge.
So why the difference? Selling a business is more complicated. An experience business broker must know how to read, analyze and interpret complex financial statements. Selling a business is complex.
- Complimentary Business Valuation Opinion
Every time I meet with a prospective client to sell their business, I always ask what they believe is the value of their business. Overwhelming, business owners undervalue their business and that’s were business brokers or business intermediaries come in.
Experienced business brokers or business intermediaries is trained to analyze financials and the overall characteristics of a business a render business valuation opinion. This opinion of value serves as a point of reference for how much you will list your business for sale.
- Confidential Maximum Exposure of Business Listings
Residential and Commercial Realtors want the whole world to know their listing is for sale. Business brokers do absolutely the opposite! No business owner wants their clients, employees or competition to know they are selling their business (and rightfully so).
Experienced business brokers or business intermediaries know exactly how to market a listing confidentially in the US and around world. It’s a delicate balance but it can be achieved.
- We Vet All Buyers
Who likes “tire-kickers”? Come on, we have all been guilty of it. However, we never like to be on the receiving end of it.
Experienced business brokers or business intermediaries are trained to vet buyers from the initial contact. This includes requiring them to sign a Confidentiality Agreement / Non-Disclosure Agreement (“NDA”), provide their Driver’s license/Passport Number, complete a personal financial statement and other forms (depending on the deal type).
- From Listing to Closing
Imagine if restaurants did not use a recipe to cook your meals? What a disaster.
Experienced business brokers or business intermediaries have the secret receipt to take a listing from listing to the closing table. Not understanding this process in its entirety will absolutely lead to not selling your business.
This is the most important factor in using a business broker or business intermediary. It is where the “surgery” actually takes place.
- Best Positioned to Sell Your Business
I have the unique experience of being on almost all “sides” of a business closing. As a lawyer I have represented buyers and sellers. As a business broker/intermediary, I have represented buyers and sellers. I am a business owner. I have been a neutral Closing attorney at business closings, and I have sold a business.
All this experience allows me to say that an experienced business brokers or business intermediaries is absolutely the professional who is best positioned to sell your business.
We will help sell your business at the highest possible price, offered to qualified buyers and sold within the shortest timeframe possible.
There you have it, the #7 Benefits in Using a Business Broker or Business Intermediary.
We highly recommend that business owners hire Business Brokers or Business Intermediaries to sell their business.
Don’t self-perform surgery, hire a Business Brokers or Business Intermediaries.
If you are looking to sell your business, contact us for a free and confidential consultation.
Gil Sanchez, Esq.
Founder & CEO of Tempus Business Strategists, LLC
Tempus Business Strategists, LLC (“Tempus”) is a Florida Licensed Real Estate Brokerage (License #: CQ1051910). Tempus is a Member of the Business Brokers of Florida (“BBF”), International Business Brokers Association (“IBBA”) and Alliance of Merger & Acquisition Advisors (“AMAA”).
Tempus #1 goal is to represent Florida business owners in selling their business for as much and as quickly as possible. We sell businesses from all industries. Deal size ranges from $50,000.00 to $20,000,000.00.
We also assist buyers to acquire businesses, business consulting and valuation opinions.
We market our listings confidentially to people and companies in the U.S. and around the world.
All buyers are required to sign Confidentiality Agreements and provide their own personal financial statements.
Our business brokers and business intermediaries will assist in providing a business valuation opinion, guide buyers for financing and take a listing from listing to close.
No upfront cost to hire us. We are paid only if we sell your business.
Contact us now for a free phone or in person consultation. 844-509-5778.
Tempus Business Strategists, LLC is a Florida Licensed Real Estate Brokerage (License #: CQ1051910). Tempus is also a Member of the Business Brokers of Florida (“BBF”), International Business Brokerage Association (“IBBA”) and Alliance of Merger & Acquisition Advisors (“AMAA”).