Seeking for professional guidance with your business transactions? If so, you may want to consider these 3 benefits of hiring a business broker outlined below.
Business owners are almost always emotionally attached to their businesses at some level. This works in their favor when trying to build a business. However, when it comes to selling, it can sometimes cloud judgment. Owners tend to attach emotional value to a selling price, and this may lead to a price tag that is too high. While every business owner expects to negotiate that price, setting the price too high may scare off potential buyers before they even start to investigate a particular business.
While there is no hard-and-fast scientific “formula” to determining a business’ value, a selling price should be based on reality rather than emotion. That reality is usually a combination of profitability of the business (based on the profits of preceding years), assets included in the sale (equipment, property, employees, etc.) and the state of the current market. A broker understands all of these things and will help you set a fair and realistic price that still allows for room to negotiate. Source: Blog.MergerPlace.com
Business Brokers are aware of market conditions affecting the value of a business. They will know if corporate buyers are involved in the space, if credit markets are effecting lending, and can provide insight into the current SBA loan policies environment. A Business Broker will also be knowledgeable about other businesses like yours which may have sold recently and even provide information about proposed tax changes that can affect the value of your business. Source: BankOfAmerica.com
A good business broker knows that, first, maintaining confidentiality is key. You will need to navigate the transaction process carefully and quietly – only disclosing the sale to others when necessary. A broker can market the business for sale in Florida without divulging the name until a qualified buyer is located. A broker can also advise about the proper time to deal with landlords, employees, suppliers and customers. Source: SelfGrowth.com