Should You Use a Business Broker to Sell Your Business?

Why Use a Business Broker to Sell Your Business?

In our "do it yourself" society, if there is a perceived way to save money by doing things ourselves few of us can resist.  That explains why I built a deck on my house, fixed my own plumbing and unsuccessfully tried to build my own website.  Something's are best left to the professionals like cutting your hair, dental work, tax returns and selling a business. 

People invest mind, body and soul for 10 to 20 years to build a successful business, and then when it comes time to harvest their profits some choose to "save" the commission fee by selling it themselves.  Often people don't realize that a qualified business intermediary, on average, sells a business for 20% more than a "by owner" sale.  (International Business Broker Association Journal, Volume VIII, Number 1, 1998)  Another real risk of improperly preparing and marketing a company is that the business will never sell and have to be liquidated.

Recently there was an excellent survey done by T. Leverette ranking the various reasons business owners hire business brokers.   

1. Brokers know how to sell businesses; most sellers don't	20%
2. Confidentiality preservation and knowledge of what/when to show buyers	16%
3. Seller doesn't want to be distracted from running business	16%
4. Access broker's database of potential buyers and investors	9%
5. Maximize price buyers will pay for the business	9%
6. Broker understands and can depersonalize negotiations	7%
7. Owner does not know how to find buyers	7%
8. Prepare owner to sell and prepare business for sale	7%

In golf there is a special word used to describe getting a second chance.  It's called a "mulligan" out on the fairways.  Many things in life allow for mulligans, like painting a room the wrong color or burning dinner.  But something's only allow one bite at the apple like surgery, lawsuits and selling your business.  Ask yourself if the decision you're making permits a mulligan or if the decision is final? It's your life.   

For a complimentary consultation:
Contact  Cecil Williams (cecil@bizbrokerflorida.com) or call  at 888-925-5055 ext.206.  Visit my personal website to search for business for sale in Florida www.bizbrokerflorida.com  Also, visit our Florida Business Exchange website at www.fbxbrokers.com