Are you thinking of selling your business, and you don’t know how to do it without a broker? Don’t fret. Gone are the days when you would have to find a broker immediately you thought of selling your business. As much as brokers will relieve you of the burden of scouting for a buyer, you end up paying them a lot of money in the form of commissions. They tend to charge outrageous fees, which is uneconomical in the long run. Why go on this path, whereas there are various options for you? You need to save that money you give to the broker as commission. Besides, these brokers are not emotionally and financially invested in your business as you are. Due to this, you might find that your business has been listed in the market for years or months without any buyer coming forth. Note that even if you find a buyer yourself, the broker will still be obligated to handle all the transactions. Below are some tips to help you as you sell your business privately.
One thing you need to understand is that delay destroys deals. If a prospective buyer wants to buy your business but realises that you don’t even have your books in order, then they will look away and search for another seller. It is important to prepare ahead of time. Know what documents you need to have for the transaction to go through. If you have a lease, ensure you have the lease contracts necessary. Please don’t wait until the buyer ask, for you to start processing them as this shows a lack of seriousness on your side. Note that brokers never list the company on the market until they have all the documents ready. Hence, there is no reason for you to do so. Be smart in your dealings. Try to put yourself in the shoes of the buyer. A prospective buyer will always want to see the financials before anything else. Have your accountant produce at least three-year financial statements to present to the buyers.
Just like brokers maintain their ground when stating their price, never should you lower your price for the convenience of the buyer. It doesn’t matter how good they are, if they cannot offer you the value for your business, respectfully decline their offer. Buyers will do their all to have you reduce your price, and if you fall into their trap, you will not be giving your business any justice. Always remember the number one rule of selling a business; maintain your ground. This is one of the skill brokers have been able to hone, and that is why they manage to get great deals. Never make the mistake of allowing the buyer to lead the negotiations. In case you need to consult about the asking price, you should find a reputable financial advisor. Also, if things get heated, and you have no means of maintaining it, consider consulting a lawyer.
If you have chosen to sell the business without a broker, it is essential that you ensure there is clarity, be it in the clauses you use in the contract or the business description. Note that if the terms and conditions of sale are clear, it will even be easier for you when selling the business. Your clients won’t have to keep asking what you meant in a particular clause. It is advisable to go through the terms and conditions with the prospective buyer to ensure you are on the same page. This is important because it will also help you have an easier time while selling the business.
Avoid Getting So Attached To The Business.
Attachment can hinder you from grasping some of the best deals for your business. You indeed spent a lot of your time and energy in your business, but you need to let it go if at all you want to sell it. If you get too attached, you might think irrationally during the negotiations and maybe lose reason, because you had invested in it. However, some level of attachment is good because it makes you keener when deciding which buyer deserves to take over the business from you.
You don’t need to speak to a broker for you to successfully sell your business. There are plenty of marketplaces where you can list your business and find a prospective buyer. Consider the tips above when you start the sale process.