Why Do I Need a Broker to Sell My Business?

Business owners who are thinking about selling get a lot of advice. Their attorney, their accountant, and their brother-in-law all have something to say about when and how you should sell. So we’re never surprised to get asked: why should I pay a broker 10% commission when I could probably sell my company myself?

It’s a fair question. Here are some of the reasons we think it’s always wise to engage a business broker.

We understand the market and have a database of buyers who are interested in your business. A professional broker will have spent years analyzing market data and sales of companies that compare to yours. We’ve accumulated a large list of motivated and qualified buyers who might be a good match for your company- something most sellers have no way of doing themselves. We also know that the best way to get full market value for your business is to get more than one offer, so you can choose the price, buyer, and terms that make the most sense for you.

We become your partner and advocate during the negotiation process. Most sellers are going through this process for the first – and maybe the only – time in their lives. If you’re selling to a private equity firm or an experienced strategic buyer, you’ll be at a big disadvantage. They’ve been through the process many times, and they have a team of advisors working for them. They’ll be structuring the terms of the deal to their own best advantage.

Your broker is your guide to getting the best price for your business and the best terms for you. We can walk you through your options in structuring a deal and help you avoid costly pitfalls and oversights. We don’t get paid until your business is sold, so our interests are aligned. We want the deal to close as quickly, cleanly, and profitably as possible, just as you do.

We make sure your time, energy, and resources aren’t wasted with the wrong buyer. When an owner manages the sale themselves, they have to invest a lot of time and energy in making the deal happen. Responding to requests from the buyer, lenders, attorneys, and others can be a full-time job in itself, leaving you little time to run your business.

We ensure that your time isn’t wasted by unserious or unqualified buyers; it’s our job to screen prospects for you. We also make sure that your time isn’t wasted with unnecessary requests for information or changes to the minutiae of the sales agreement. You can trust us to tell you in advance where the deal might run into obstacles and help you avoid or minimize them.

We keep the deal moving. Time is the enemy of every business sale, and many sales fall apart because one or the other party can’t find the time to respond with necessary information or documentation. We understand the critical timelines and deadlines that must be met to make a deal happen, and we keep the buyer and other professionals engaged and motivated to get to the finish line.

Industry statistics tell us that only 20% of businesses listed for sale actually ever sell. That’s probably true for owners who try to manage the sale themselves or who don’t understand the process or the current market for their business. Our close rate is more than double the industry average.

You only have one chance to sell your business, and working with an experienced business broker dramatically increases your chances of closing the deal and maximizing the profit from the company you’ve worked so hard to build.

If we can help you understand the value of your business in today’s market, a good first step is to ask for a complimentary and confidential opinion of value.

About the Author:

Jeannie Keen, Certified Main Street Business Broker, Certified Project Manager, Licensed Clinical Social Worker

Jeannie Keen has more than 20 years of business experience, with more than ten years of experience in small business ownership and management. Jeannie holds a license in Clinical Social Work (LCSW), a Project Management Professional (PMP) Certification, and is a Certified Main Street Business Broker (CMSBB). Jeannie’s true passion lies in helping business owners sell on their terms and helping buyers realize their dreams of business ownership.