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I Want to Sell My Business. Should I Hire a Business Broker?

Owning a business is a rewarding experience that allows you to follow your passion, be your own boss, and secure equity. But there may also come a day when you find yourself thinking, “I want to sell my business.” Whether it’s due to retirement, health concerns, time, health, family matters, new passions, vacation aspirations, or simply wanting to seek out new opportunities, there are a series of steps you’ll have to go through to make this a reality.

Selling your business involves setting the right asking price, finding qualified buyers, and ensuring a smooth transition. But should you tackle this all on your own, or is there someone who can help lighten the load? In many cases, business owners turn to a business broker to guide them through the sale process. Below, we’ll explore who a business broker is, what they do, and whether hiring one could be the right move for you.

What Is a Business Broker?

A business broker acts as an intermediary between you and prospective buyers. They have expertise in:

  • Business Valuation: Assessing a company’s worth based on market conditions, finances, and industry trends.
  • Marketing the Business: Connecting with potential buyers, listing the business on relevant platforms, and performing confidential outreach.
  • Negotiation: Handling price discussions, contract terms, and other deal points that help both parties reach a fair agreement.
  • Facilitating the Sale Process: Coordinating paperwork, due diligence, and ensuring a deal progresses smoothly from start to finish.

Often, a business broker receives a commission, typically a percentage of the final sale price. This fee structure motivates them to help secure the best possible deal for you.

Benefits of Hiring a Business Broker

Some people know for months or even years that they are ready to sell their business, while others have a sudden turn of events that cause them to decide, “I want to sell my business.” The good news is that hiring a business broker allows you to work through the process quickly and efficiently so that you can meet your goals. Here are the benefits of hiring a business broker: 

Expertise and Experience

Selling a business involves many moving parts—from financial analysis and marketing to negotiations and legal documentation. A business broker brings professional know-how and a network of industry contacts. Their experience may help you avoid common mistakes that inexperienced sellers often make.

Time Savings

Running a business is already a full-time job; adding the workload of marketing, listing, and screening buyers can be overwhelming. A broker saves you time by handling these tasks. You can stay focused on maintaining or improving the business’s performance, which ultimately supports a higher sale value.

Confidentiality

When a business hits the market, owners often worry about what customers, employees, and competitors will think. A broker will maintain confidentiality by using blind profiles and vetting both serious and qualified buyers before disclosing sensitive details. The broker will protects the business’s operations and reputation during the sale process. Sellers benefit by leveraging our refined procedures that protect clients, vendors, employees, bankers, contractors and others from having knowledge about your sale.

Wider Buyer Reach

Business brokers typically have extensive professional networks and maintain databases of potential buyers. They know where to list a business to gain maximum exposure to qualified prospects. More buyer interest can lead to a more competitive environment and potentially a better sale price.

Negotiation Support

Negotiating directly with potential buyers can be stressful, especially if you’ve grown the business from the ground up. Having a broker as a buffer can help prevent emotional decision-making. They’ll negotiate from a place of market data, ensuring that offers align with your target value.

Considerations of Hiring a Business Broker

While business brokers do bring many advantages to the table, there are also some considerations to keep in mind. First, business brokers usually work on a commission basis. This fee is often worthwhile for professional assistance, however, it can be challenging for smaller businesses or owners with tight budgets. 

Second, when you bring a broker on board, some aspects of the process are no longer in your direct control. Again, this may not be a big deal for everyone, but if it is for you, be sure to choose a broker who respects your vision for the sale. Good communication from the start can help avoid conflict. Lastly, not all brokers bring the same level of expertise or dedication. Research is essential. Review the broker’s track record and make sure they’re active in your specific industry or market segment. 

I Want to Sell My Business. When Should I Consider Hiring a Business Broker?

Most people can benefit from having a business broker on their side, but we highly recommend this arrangement if you: 

  • You Lack the Time or Expertise to Manage the Sale Yourself: If you’d rather keep your focus on running daily operations, outsourcing the complexity of the sale to a professional can be a game-changer.
  • You Want to Maximize Your Sale Price: Brokers often have a pulse on market trends and can suggest ways to improve your company’s valuation before taking it to market.
  • You Need Help Maintaining Confidentiality: A broker’s established processes for vetting buyers and presenting the business discreetly can safeguard your relationships with employees, customers, and suppliers.
  • You Seek a Smooth and Efficient Process: From due diligence checklists to managing buyer inquiries, brokers can streamline tasks and keep the deal on schedule.
  • You’re Targeting Out-of-State or International Buyers: Brokers with wide networks can connect you with buyers beyond your local region, increasing your chances of securing a strong offer.

Tips for Choosing the Right Business Broker

When choosing a business broker to help sell your business, start by checking their track record. You want someone who has successfully sold businesses similar to yours in size and sector. Also, ask about their network. A broader professional network means more exposure to qualified buyers. 

Be sure to ask the right questions before finalizing the partnership. Clarify commissions and any additional fees. Some brokers may charge an upfront retainer, while others charge upon completion of the sale. It’s also recommended to find a broker who communicates well, aligns with your values, and understands your business’s vision. Doing your due diligence ensures you will be satisfied with the end result, and most importantly, know that your business is in good hands. 

Sell Your Business Today in Illinois, Indiana, and Wisconsin 

Deciding whether to hire a business broker is a major choice—and it can significantly impact the outcome of your sale. While the professional guidance, confidentiality safeguards, and extensive networks a broker provides are appealing, you should weigh the cost and the level of involvement you’d like to maintain. If you’re pressed for time, unfamiliar with the sale process, or simply want to maximize your final price, a business broker can be well worth the investment. 

Here at Tangent Brokerage, we buy businesses in Illinois, Indiana, and Wisconsin. Our experienced brokers know how difficult this decision can be, but we are here to make this process as streamlined and stress-free as possible. With nearly 40 years of experience, our brokers manage the entire process from start to finish so that you can focus on the next chapter of your life. To schedule a free consultation, contact us today at 630-862-5234