How A Broker Adds Value When Selling Your Business

Posted on 4 February 2022
How a Business Broker adds vlue

Whilst it is not essential to enlist the help of a broker to sell a business, having an experienced broker or advisor to assist you can certainly add value at several points during the selling process. At ABBA Group our industry leading team of business sales agents consists of the most experienced and respected business brokers in the industry. We manage the entire sales process for you from beginning to end, ensuring to be a valuable resource for you when selling your business.

Below, we will examine four aspects of selling a business and discuss how a great broker will provide additional value at those stages.

 

1. Defining the worth of a business

What you need to do:

Decide the value of the business and, importantly, understand what the market will deem appealing about the business.

How a broker will add value:

Firstly, you will need to get independent advice from a registered business valuer on the worth of the business. Regardless of if the valuation is provided by the broker selling the business or an independent valuer, it is crucial to establish what the business may be worth in the current market and decide if that meets your expectations as the owner. This step is not about just determining a price.

At ABBA Group as a part of our service we can offer a business valuation, meaning our experienced brokers will give you an understanding of the market dynamics which will indicate how attractive your business will to buyers, where the interest for your business will come from, and how much interest there is likely to be.

2. Preparing the business for sale

What’s involved:

Confirming all features of the business – the staff, financials, procedures, clienteles, processors, systems, P&E, etcetera – are in order and ready for the sale.

How a broker will add value:

When a potential buyer has a question about the business opportunity, you will need provide answers quickly and efficiently. Additionally, your answers need to be transparent and comprehensive to ensure the prospective buyer feels confident as they assess the risks and opportunities of the business. The last thing you want to do is make the buyer nervous. While helping you prepare for a sale, the brokers at ABBA Group will ensure you have all the important documents and answers ready well before you start talking to potential buyers.

 

3. Describing the opportunity to potential buyers

What’s involved:

This is coupled with preparing the business for sale, however, focuses on professionally describing the business, both in conversations and in document form with prospective buyers.

How a broker will add value:

Look at a business for sale like a new car. Buyers can look at the new polished car in the dealership, sit in it, and even go for a test drive. Yet, most buyers will also want to know more about the car’s specifications and details. The answers they seek are not embodied by the car itself, but by the salesperson promoting it, and supplementary documentation.

At ABBA Group, we will play the same role. We will consider the type of people who may be attracted to your business and what information they may want to know before purchasing. We will then create a professional document which showcases the business in its best light, while also clearly describing its performance, market dynamics, opportunities, and risks. By doing this we also guarantee we are well situated to speak proficiently about the business specifications when potential buyers call.

 

4. Advancing the sales process

What’s involved:

Finding potential buyers that may be interested in the business and maintaining regular, controlled, and attentive conversations with them over the selling period.

How a broker will add value:

During this process the buyer’s interest is authorised, established, and improved through to an offer, acceptance, due diligence, final legal contracts, and completion. It can be a complex task for you as a business owner who is busy running your own business as it takes a reasonable amount of time and perseverance to consistently follow-up with interested buyers. This can also be difficult for owners as the process involves asking some potentially uncomfortable questions of possible buyers.

These could include asking interested buyers:

– What is your experience? What does your resume look like?

– Why are you interested in the business?

– What does your balance sheet look like?

– How are you going to pay for the business? Have you got funds available? What form are they in?

– Are you interested in the business at this price? If not, what are you prepared to pay and what are your reasons?

You may need to ask blunt questions, and this can often be confronting for a business owner. What’s more, occasionally, a buyer may not feel comfortable answering them in direct discussion with the owner. This is where our experienced brokers can be a successful advocate for both parties and create a deal that is successful for both. Acting 100% on your behalf, we remain calm and confident throughout the negotiation process without ever compromising your strategic position or integrity.

ABBA Group’s team of business sales agents know exactly how to secure you the best possible sale price – and the most favourable contract terms possible. We work hard to form an in-depth understanding of your business and divestment goals, ensuring your most important asset delivers the exit strategy you deserve.

 

 

Interested to hear more? Contact Anthony today for a free consultation

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“I would love to have a chat with you regarding the sale of your business. With a background in senior sales and business management, I have been in the Australian business broking industry since 2006. In that time I have helped change the future of many businesses and the lives of many people.”

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