After many years of hard work and perseverance, there is always a good reason behind selling a business that you had set up. Be it retirement or finances for the next business venture, getting the best value for your business is the whole idea behind the act of selling.
Therefore, doing it yourself needs a lot of research and is time-consuming at the same time. You also may not get a profitable deal. Instead, you will require a professional and expert approach to this matter that only an experienced and certified business broker in Melbourne can offer.
But if you are still sceptical about considering this idea, here’s why you must consider it. Read on.
- Excellent Presentation: The presentation of a business entity plays an important role in the process of its sale. Business brokers have a professional idea about how to present a business in the most appropriate manner in order to accentuate its advantages over any disadvantages. A business broker will know the right way to present any particular business in a highly appealing manner.
- Negotiation skills: Business brokers are an expert of negotiating. They will research the potential buyer and understand their requirements. Based on that they work on striking the best possible deal for your business. You may have good negotiating skills yourself but business brokers know how to turn the conversations in the right direction. They would know by their experience in selling businesses in Melbourne that how far a buyer would go and try to get the best possible price for your company.
- High-quality teaser and CIMS: Now this part is particularly typical for a business owner to sell their business. Marketing the sale of your business in the most effective manner possible. For this an expert business Broker is required who can create high-quality teasers containing brief summary of your business describing its positive features, to be sent to the potential buyers to know their interest in the deal. Upon showing their interest in buying your business, an NDA(non-disclosure agreement) is signed by them and after that, a CIM(Confidentiality Information memorandum) is sent to them elucidating all the information about the company.
This whole process needs substantial experience and expertise using which documents like NDA and CIM are prepared. Doing it yourself will take a much longer time. - Less Paperwork: There is a lot of paperwork involved in the process of selling a business like NDA, CIMs and purchase agreements. These documents must be prepared very carefully and wisely so that you can get the best value for your business. A business broker in Melbourne hence is the right person to carry out the task of drafting these contracts and agreements in time without any possible loopholes.
- Background check: Before getting into any business agreement with the potential buyer, it is important to do a thorough background check of the buyer company to gauge its genuineness and its true interest in the proposal. Because business brokers’ core job is to deal with buyers and sellers, they have the required sources to extract information about a potential buyer. Therefore, if a professional is hired to do the job, you will save a huge amount of time in dealing with those buyers who are “just-looking” or do not have sufficient budget to give the best value. And also you will reduce the chances of potential fraud.
- Good Relationship: In the process of sales, a buyer needs to establish a good relationship with the seller to carry out the entire selling business smoothly. They need to show them around, explain every aspect of their business and tell about their employees and other parts of the business. All this could be quite hectic and overwhelming for both parties. Hence, some of this load can be shared with an expert broker who can be the seller on your behalf and deals with the buyer in the best possible manner. With their experience and knowledge in selling business in Melbourne, they would know how to deal with the buyer tactfully.
- Market study: To set the right price for your business, it is vital to get a complete understanding of the market and its ongoing trend. A business broker will have excellent knowledge not only about the current market situation but also about past fluctuations and future prospects of it. Based on this comprehensive market data, they are able to put a correct price tag on your business. This helps in selling the business faster and at the correct value.
- Business Database: Equipped with a carefully curated and exhaustive buyer’s database, a business broker in Melbourne knows where and when to put your business offer into the market. Getting the correct target audience for selling your business saves you a lot of time and helps in getting other business opportunities in future. A professional expert will be able to find a better potential buyer than you can do.
- Saved Time: One common thing that can be noticed in the above 8 points is that all of them are pretty time-consuming and hectic. From preparing NDA and CIM documents to business teasers, from doing market research to buyer screening, from showing around the buyer to negotiating the price, from signing the sale deal to drafting contract and agreements, everything demands undivided attention and needs to be done with utmost professionalism and expertise which only an experienced business broker can offer. Delegating these responsibilities will save you a lot of time to focus on other aspects of business and also in getting the best value for your company.
Conclusion
For carrying out the marketing and sales process of a business or a company, a business broker in Melbourne takes a certain amount of fee called broker’s commission which is about 5-10% of the final sale price. Though the fees are quite high, it is still advisable to do some research and find out a reliable and experienced business broker for selling your business who knows the in and out of the sale process and can get you the best value for your business. They will help you find a legitimate buyer and close the sales deal faster. And there is a famous saying – time saved is money saved.
Wired General 