If you are thinking of selling your business, you are probably experiencing a potent mixture of excitement, nerves, and anxiety. After all, selling a business for any reason is a complicated process, involving detailed planning and a series of essential steps – from locating potential buyers to negotiating terms and going through due diligence.
While it may be tempting to ‘go it alone’, the truth is that hiring a business broker can make the whole B2B buying process more straightforward – and a lot less stressful.
Of course, if you’ve never used a broker before, you may not be familiar with how they work and why they can help. To shed light on the subject and answer the pressing question ‘why use a business broker?’, we’ve compiled a list of the most significant advantages of hiring one, so you can make an informed decision about your sale.
What is a business broker?
If you’re wondering “What is a business broker anyway?”, the answer is that business brokers specialise in facilitating mergers and acquisitions, acting as the middleman between buyers and sellers.
Drawing on their substantial M&A experience, they can simplify the process of selling a business and save you a significant amount of stress.
One of the main benefits of business brokers is their nuanced expertise in the B2B buying process. This makes them ideally situated to identify synergies between your business and potential acquirers.
Whether there’s a strong link between your product or service portfolios, or between your current market reach and what they want to achieve, a business broker is expert at finding and matching the right acquirer to the right seller
Communication is their forte
One of the most taxing elements of selling a business is sifting through potential buyers and establishing which ones are seriously interested and which may be wasting your time. This process can be very stressful if you are trying to go through it while simultaneously overseeing your company.
When you hire a business broker to manage your sale, you pass on this tricky task to them. They will get to work, weeding out unsuitable or timewasting acquirers and vetting the most suitable candidates.
Along the way, they will ensure that those candidates sign confidentiality agreements to protect all sensitive information pertaining to the sale, and they will also be able to ascertain if a would-be buyer has the financial resources to go ahead with the purchase.
Marketing and promotion – sorted!
An important part of scouting for potential acquirers involves creating high-quality promotional materials – which typically comprise a teaser and a more detailed information memorandum.
These resources will take all the salient details of your business and package it into a sophisticated promotional brochure that interested buyers can read through.
Business brokers are expert at creating these promotional materials to a high standard and sending them out to acquirers. They also handle any enquiries they have because of the materials, from acquirers who have liked what they saw in the marketing pack and are keen to proceed with a possible purchase.
Smooth negotiations
Negotiating with a potential acquirer can be one of the most stressful stages of the business buying process – particularly when you are so emotionally and financially invested in the business you’re selling.
Using a business broker frees you of this significant source of anxiety, as they are skilled negotiators who can take over the communication for you. Drawing on their years of experience, they will be effective at overcoming any hurdles that crop up during this stage of the proceedings – while simultaneously focussing on helping you achieve a favourable outcome.
Demystifying due diligence
Due diligence is a vital – and potentially lengthy – process that commences once you have formulated an initial agreement. The buyer will ask for access to various essential documents related to the running of your business, so they can make an informed decision about whether they want to go ahead and complete the sale.
Due diligence is a tense period of the sales process, as it can make or break a sale. This is where an expert business broker can be worth their weight in gold, as they can use their experience and specialised skills to ensure the process goes as smoothly as possible.
This includes providing the requested documents to the buyer in an efficient manner, keeping the channels of communication between both parties clear and open, and handling any challenges that may arise during the process.
Selling your business, made simple
If you are planning to sell your business for any reason, here at Harris Acquire, we are happy to help make the process as pleasant and hassle-free as possible.
A reputable business broker with years of experience at our fingertips, we can guide you through every stage of the process, taking care of the complexities and challenges on your behalf, so you can focus on managing your company and preparing for your new chapter.
Sounds like a plan? If so, then don’t hesitate to contact us at 01926 757100 or send an email to Hello@harrisacquire.com, and a member of our friendly, experienced team will be in touch to discuss things further.