Every entrepreneur has an exit plan they lay out when they start their business. Although this plan may evolve over time, as the business owner expands their family and company. An entrepreneur who once planned to keep their business in the family might have to sell when they discover their children have chosen different paths in life. While running the business might be second nature to the owner, selling it is not. Business owners are emotionally involved in their companies and determining what a business is actually worth requires an unbiased assessment.
The first thing for an entrepreneur to do when they decide they want to sell my business is to gather all of their financial records. A business broker will need to know about the annual revenue, accounts payable and receivable, assets, debts and employees. While these numbers are important, none of them are as vital as the average customer value. Companies with loyal customers may be worth a lot more than those that struggle to get new customers, even if the product or service is expensive. A broker can help a business owner determine how much their company is worth so they don’t waste time by pricing it too high or get cheated by pricing it too low.
People contact brokers when they are planning to sell a business but brokers are the first point of contact for those who want to buy as well. The best business brokers have a database of buyers and when they receive a call from a business owner, they may already have a few prospective buyers a phone call away. A broker will be instrumental in helping the seller negotiate the deal. Brokers work for the seller so they are committing to helping them get the best offers for their company. Brokers understand entrepreneurs devoted years of their lives to build their businesses and so they work hard to connect them with people who will carry on their missions.
Selling a business may not be easy but it doesn’t have to be stressful. A broker can help a business owner understand the process while they connect them with interested buyers who are willing to pay them what their company is worth.