You’ve decided to sell your online business and now you’re ready to introduce your business to buyers. For most sellers a broker’s role is to assist with the exit strategy of their company. Choosing the right broker allows you to maximize the sales price of your business to fund your next venture, take some chips off the table or retire. The wrong broker can however have your business left on the market and not sold for months (or even years) or have you leaving money on the table when you sell.
Why Use A Business Broker?
A business broker are advisors that help you through their in-depth knowledge of valuation, prospecting, marketing, legal, negation and closing a deal when selling a business. Additionally most brokers are normally business owners themselves and their insight as an entrepreneur as well as an advisor will help you facilitate and streamline the selling process allowing them to focus on the deal and you to focus on running the business.
There are four main to use a business broker to sell your online business:
- A broker understands the art of getting multiple buyer offers for a business. Two things happen when this is the case. Firstly, the seller has a much better chance of getting fair market value for the business and getting better terms and secondly the risk of not closing a deal is minimized.
- As seasoned negotiators, brokers know how to over the objections of a buyer that prevent a sale from closing. They are the neutral third party that can
- As professional negotiators, brokers know how to overcome the many obstacles that often prevent a sale from closing. They don’t fall prey to personal emotions and can leverage their experience to help you receive the best possible price and terms for your company. Additionally, they keep the deal on track ensuring that all parties meet the necessary deadlines–a key contributor to a successful sale as time kills deals.
- Business brokers also help keep the deal confidential, which is appreciated by sellers as it allows them to tell employees, suppliers and customers that they are selling their business at the right time.
A business broker essentially “quarterbacks” the sale of your business. Here is a list of tasks that they generally perform.
- Determine an appropriate valuation of your business
- Develop an in depth prospectus (sales memorandum) about your business which includes what the business is, how it makes money, financials, traffic and a general FAQ about the business
- Market the business to potential buyers both on their existing database but also to the general market
- Present the business to potential buyers
- Draft and present offers from prospective buyers
- Assist in negotiation on behalf of the seller
- Walk the buyer and selling through the due Diligence process
- Protect the business sale confidentiality to employees, suppliers and customers
- Look after the paperwork for the deal
- Close the deal and manage money transfer
- Provide after-sales support
7 Steps To Selling Your Business
2. Develop the Prospectus
3. Find Potential Buyers
4. Price Negotiation
5. Due Diligence
6. Transfer of Assets & Money
7. Buyer Training