What is a Business Broker and Why Do You Need One?
What Is a Business Broker?
A business broker is someone who is an expert at selling businesses, with a range of knowledge that can help buyers connect with sellers. They often act as project managers for a business sale, ensuring the business is marketed properly, paperwork is completed and a good deal is negotiated. In the past, brokers commonly represented sellers, but buyer representation is becoming more common and can help prospective entrepreneurs navigate the complicated journey of buying a business. The knowledge and expertise of LINK Business Brokers can bring both buyers and sellers to a successful transaction.
Business Expertise
Current business owners may have sales skills, but it's unlikely they have a lot of experience selling businesses. Selling a business requires specialist skills, including marketing without breaking confidentiality, collecting paperwork for due diligence and valuing a large asset. Business brokers bring their experience to the table so that you don't have to learn the ins and outs of all these skills.
For buyers, a broker's experience can help you find the right business. Brokers can narrow down your search and make sure the business fits your lifestyle and expectations. They can also prescreen businesses to make sure you're not taking time to look at enterprises that won't meet your needs.
Local Knowledge
Business brokers have a lot of knowledge about the local market. Brokers from LINK understand what the economy is doing in their city and the trends in the area. This helps them give business owners an accurate opinion of the value of their business, which in turn helps the business find buyers quickly. Their contacts with local businesses help them find prospective buyers for the businesses on their books.
Understanding the trends in a particular location can also help brokers guide buyers to businesses that will grow into the future. They can point to growth industries and help buyers find business opportunities in those industries. Brokers can also put buyers in contact with local experts, such as bankers and lawyers, who can help finalize the sale.
Peace of Mind
Business brokers often act as a buffer between the buyer and seller, helping smooth the negotiating process. They have objectivity, which is hard for both sellers and buyers to find when talking about a business they've built or one they hope to own. Brokers also help keep confidentiality, an important factor for sellers hoping to get the best price.
A LINK business broker can also help take some of the stress away from the selling process. Business owners need to spend their time continuing to run their business to ensure it gets the best sale price, so having a broker take on the sale means one less thing to worry about.
Buyers may also find their stress lessened by having someone with experience in their corner. A broker can help them find businesses that are realistically priced, taking away the worry of overpaying. There's a lot of paperwork to check during due diligence and to sign when closing the sale, but a business broker can ensure buyers don't miss anything. This means all you have to worry about is how to continue growing your new business.
LINK's knowledge and expertise make it the first port of call for individuals looking to buy or sell a business. Our years of experience help us match the right business with the right buyer, facilitating successful sales and giving both buyers and sellers an experience that's as stress-free as possible. Contact one of our local LINK offices today at 844-840-5600 to schedule a confidential meeting to discuss your next business venture or your exit strategy.