For most business owners they have invested a significant amount of time, energy, and resources in building their business. To that extent then it can be a very difficult and emotional decision for many business owners to contemplate the “end” to their business ownership.
Everyone possesses an array of skills. You may know a thing or two about electrical work or plumbing, etc. and if you have minor tasks around the house that call for something “simple” you probably tackle that task yourself. But when the job gets too large you do what we all do – call in the professional!
is no different. You have been an “expert” for many years in possibly starting your company from nothing, building it over the years, developing talent that has helped you prosper all these years. You may even feel that with all these years of success that the concept of selling your business YOURSELF is, maybe, a good idea. We’re here to tell you that it is probably not the best option for you, and here’s why.
In addition to business brokers negotiating a deal for your company there are numerous benefits to you offered by business brokers. First and foremost is confidentiality. To all our seller clients confidentiality is absolutely critical for the obvious reasons. Another element is that business brokers remove the emotional element from the negotiation that would most assuredly surface if you represented yourself. Showing the wrong emotions at the wrong time will result in negotiations that will most definitely decrease an offer price.
Another important factor is “reps & warrants”. In all transactions, sellers must “rep & warrant” certain aspects about their business, whether that’s financials, contracts or that “guarantee” you made at a dinner you had with the buyer (because you were representing yourself) whereby you guaranteed a 20% increase in sales for the next 10 years.
The use of business brokers provides you a buffer to insulate you from these types of situations along with numerous others that can cause liability in a transaction. Business brokers assist and provide guidance throughout the process from inception to LOI’s (Letters of Intent) through due diligence and coordinating communications between accountants, attorneys, lenders and other advisers to a success closing.
Business brokers are as critical to you for selling your business as it is using a lawyer in a legal matter or seeing a doctor for a health matter. At Sunbelt, we are professionals at understanding what drives value in any company and we understand the marketplace better than anyone to provide you the maximum exposure (confidentially of course) that will result in the best deal for you.