Can you sell a business by yourself? Seeking out a business broker’s assistance could simplify the process and, in most cases, make the sale more profitable. So, the decision is up to you, but you’ll need to determine whether or not hiring one is the best route for you and your business! The most effective way to do this is to weigh the pros and cons of hiring a business broker.
What to expect when hiring a business broker?
A business broker’s key role is to assist and facilitate the sale of your business and act as an intermediary between those selling and buying businesses. A business broker has multiple responsibilities to help you present your business in the best light to potential buyers. This involves everything from:
- Performing a business valuation and identifying where to improve the business value
- Assisting you with getting all the necessary documentation in order for the sale to go through
- Utilising strategic marketing techniques and their contacts to attract prospective buyers
- Handling negotiations to help both parties get a fair deal
What are the pros of selling with a business broker?
A good business broker will walk you through every step of the sale, including all the legalities that must be adhered to. Here are some compelling reasons why you should consider selling your business with the help of a business broker:
- Expertise – Hiring the best business brokers, like Lloyds Business Brokers for example, with their extensive experience in the market can prove to be incredibly beneficial. When you hire a Melbourne-based business broker, they will be experts in the Melbourne market. While they are master salespeople, they don’t just know how to talk big, but they assist with every aspect of the sale, from valuation all the way through to business exits
- Access to their extensive list of contacts – A business broker who’s worked in Melbourne for a while would have a network of contacts who may be interested in buying your business. Aside from marketing your business to the rest of the world, you’ll benefit from them sourcing a buyer who may be the perfect fit for your business
- Commitment to confidentiality – Confidentiality is essential when it comes to a business sale. This is not only for your staff but also to ensure your business details aren’t aired to others in a way that could impact them negatively. Business brokers have a strict confidentiality policy, ensuring your business details stay confidential
What are the cons of selling with a business broker:
As wonderful as it is to have a business broker in your corner on the sale, it’s not the right route for everyone. Here are some of the cons that may present themselves when selling your business with the help of a business broker:
- The fees – the cost may be a con for some people. In Australia, brokers usually charge around 5-10% of the final sale price that your business sells for as their fee. You’ll also need to consider what you’ll take home after transfer costs, tax, and broker fees
- Less control – When you hire a broker, you essentially take a hands-off approach to the business sale, trusting them to facilitate it on your behalf
What to expect when selling your business by yourself?
The difference between using a broker and selling a business yourself is that you’ll need to do all the above tasks by yourself. This includes everything from marketing the sale to sourcing accountants and lawyers and more. Obviously, this can all be quite taxing when you’re still needing to run a business.
What are the pros of selling your business by yourself?
While hiring a business broker does have its perks, there are some great benefits of selling your business on your own.
- Saving money – One of the main pros would be that you don’t have to pay a commission to anyone after selling your business. That income would go straight into your pocket which could prove essential when taking on a new venture
- More control over the sale – You’ll also have more control over the sale, including how the business is marketed to the public, who you shortlist as the potential buyers and direct involvement with the negotiations
What are the cons of selling your business by yourself?
As rewarding as it could be to sell your business on your own terms, there are some significant drawbacks to this approach that you need to be aware of.
- Limited to your knowledge and efforts – While you may be fully capable of selling your own business, your knowledge of the process may be limited. This could force you to learn during the sale, which could lead to mistakes
- Costs more time and energy – Selling a business yourself still costs you in terms of time and energy spent on the sale. This time could be spent running your business and could potentially negatively impact it
Final Thoughts
With their expertise, experience, and resources, it’s easy to see how your chances of getting the best price for business increase when you hire a business broker. Again, every business is different and it’s best to weigh up the pros and cons of hiring a business broker for yourself; maybe a private sale works better for you.
