Top 10 Reasons You Should Use a Credentialed Certified Business Broker to Sell Your Business
Did you know that Texas and many other States require you to have a license to be a locksmith, but has zero requirements to call yourself a business broker? There is no State test of knowledge or standards of ethics to prove expertise as an intermediary in business brokerage. Shocking isn’t it! In the face of no State regulation, how does a business owner know if the person who offers to help sell their business knows what they are doing?
Following are 10 compelling and measurable reasons to use a credentialed, certified Business Broker in the sale of your business.
1. The top reason to use a certified business broker to sell your business is that businesses offered through business brokers have a much higher listing-to-closing rate than those offered directly by business owners.
2. Worried about Confidentiality? In most cases, it is likely that business owners would like to keep a likely sale quiet before the deal has been done. They may not wish for competitors, suppliers or in some cases, even their employees to know of the sale. The business can be listed by the business broker on your behalf and details such as the name of the business are withheld until genuinely interested purchasers have been identified, qualified and signed a confidentiality agreement.
This stress and headache can be avoided by working with a Credentialed Certified Business Broker. Once you’ve decided that selling your business is your best exit strategy, contact a reputable Texas Certified Business Brokerage firm to keep the details of your business transaction confidential. Your business is likely to be one of the largest sales you will attempt. It is also highly likely that you will not be an expert in business sales, in which case, you should certainly turn to a credentialed business broker.
3. Check a business broker’s expert credentials.
a. Certified Business Intermediary (CBI) credential from the International Business Associations (IBBA) or a Board-Certified Broker (BCB) from the Texas Association of Business Brokers (TABB). These designations are a measure of their professionalism, education level, and experience.
b. Merger & Acquisition Master Intermediary (M&AMI) certification from the IBBA, an elite designation that distinguishes its holders as seasoned intermediary professionals who have a solid educational background and proven accomplishments in completing deals.
c. Do they have published testimonials on their website, good reviews on Google, or other social media venues? Getting references from other owners is also a good starting point.
d. Do they adhere to a Code of Ethics?
d. Are they Texas State Securities Board Registered Agents?
4. Do they have a proven track record of success? Expert business brokers will have years of experience behind them. They would have seen and experienced “the good, the bad and the ugly” sides of a business sale and, therefore, be well positioned to advise you on process, valuation and strategy.
5. The bottom line is that you want more than just one professional working on your behalf, you want an experienced organization working together representing you. You should insist on an organization whose business-selling history stands alone in your market area that has a large buyer network and a long history of successful closings.
Experienced business brokers are adept at handling the whole process from start to finish, as they have done it many times before. One of the key skills in developing a strategy is understanding what type of buyer you are looking for, and how to find them.
There are also legal and regulatory processes that must be handled, information to be gathered from third parties such as accountants and attorneys, and a sales memorandum to be developed.
Therefore, a more systemized and honed strategy will give you a more streamlined and effective sales process. By utilizing an expert to help develop and execute your strategy, you are far more likely to achieve your desired outcome.
Not only will a professional broker know the most effective channels to market your business, but they know which platforms and campaign types will be best suited to your business. Bottom line, the more inquiries you get, the greater your opportunity and an experienced business broker will give you a vastly greater, and more targeted exposure that you can achieve on your own. They have many previous clients, and an active database of interested buyers that are pre-qualified and looking to buy. They will also have access to industry databases and be able to engage strategic buyers at arms’ length that will enhance your negotiating position.
Your business broker is a third party who has your back as well as a vested interest in the successful sale of your business. Their clarity and objectivity could mean all the difference in the sale process.
Just like you would have built valuable and trusted networks in your business and your industry over the years, so too has an experienced Business Broker. The value of their networks and the knowledge and experience they share could be priceless in terms of your business sale.
Experienced business brokers will have a wide network of trusted professionals in accountancy, finance and law and can provide referrals should you not already have the right professionals that practice in the industry of mergers and acquisitions.
Selling a business is a time-consuming process. Long before the negotiation or purchase period takes place, there will be time taken to ascertain the genuine buyers from the list of interested parties. If you are working full-time in your business and are responsible for its sales, marketing, staff, revenue and profits, it is unlikely that you will have the time available to screen potential purchasers, to provide all the necessary information or be available when likely purchasers need information.
An experienced business broker will have all the systems required to handle these tasks on your behalf, thereby leaving you to get on with what you do best – running your business.
By using a credentialed business broker you can remain entirely anonymous throughout the entire sales process. Your business broker/intermediary can act on your behalf in any or all negotiations after consultation with you so that the purchaser never needs to have your direct details. This can vastly assist your stress, objectivity and emotional state throughout the sales process.
If you’re looking for a credentialed business broker to sell your business, we are here to help. Click the button below to take our free Business Value Assessment Test to determine the current value of your business. Then, when you’re ready, contact us to start the conversation.