If You Think You Get Companies, Then This Might Change Your Mind

Why Hire A Licensed Business Broker When Selling Your Business?

On typical, selling a company can take between 6 to 9 weeks. Here’s a list of 5 reasons why utilizing a licensed business broker will considerably benefit the vendor when selling their organization.

Helps in maintaining strict confidentiality

Strict Confidentiality is imperative when selling a small business. When a business owner decides to sell a business, there is a risk of losing key clients, vendors and/or employees if term of the sale gets outside. We have all potential buyers sign a Non-Disclosure/Confidentiality Agreement before we release any information about the business. We will also learn more about the buyer’s financial ability and his business acumen before releasing any confidential advice. Brokers will also shield owners from being inundated with lookie-loos or callers trying to suss out information.
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Allows the owner to run his company
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It Is critical that the company owner proceeds to conduct the company at the maximum level possible and to keep an upward tendency of their earnings or else they will risk a decrease in the last sale price. There are hundreds of factors in selling a company and it is the Broker’s job to pay careful attention to such details. We manage the whole sales transaction, in the start, all of the way into the close of escrow. Together with the agent handling all of the details, this will enable the company owner to concentrate on keeping the earnings on an upward trend. Buyers do not like to buy a company with a downward tendency of the earnings.

Give a Valuation of the Organization

Certified Business Agents will review the company financials, recast the Profit & Loss Statements to demonstrate the real profitability of the company, and to create a productive Cash Flow Analysis to demonstrate the real viability of the business. A broker will clarify how the evaluation was invented and will indicate and explain a viable listing price. Business Agents work closely with the operator and their CPA/accountant to get the appropriate advice on the financial strength of the business. Buyers like to see financials that are straight forward and clear, they do not like to see a lot of “creative accounting”.

The broker assist with the negotiations

Having A certified business broker as an intermediary throughout the negotiating process can facilitate a lot of tension between the 2 parties. A seller that is selling his own company can actually wind up killing his own thing. Business agents help throughout this very important step in the sales process and we understand that the seller wants to sell high, and the purchaser would like to purchase low. Our plan is to negotiate reasonably and have an outcome that both parties could be pleased with.

Handle all contracts and records

Company agents will handle all of the many contracts, documents and paperwork related to the sale of a business. This procedure is very time consuming however also crucial and ought to be handled by a capable business broker.