Why a Tarrant County Business Broker

62 Reasons to use a Tarrant County Business Broker

In a poll, business owners were asked why they chose to use a business broker rather than attempt to sell by owner. 24% responded that while they understood how to sell their own products/services, they didn’t have a background in how to sell a business. There were many other reasons. Here is the full list:

1. Access broker or advisor’s database of potential buyers and investors

2. Advertising run and paid by broker

3. Affiliated brokerage or advisory offices may attract more buyers

4. Assistance during escrow closing

5. Background check on potential buyers run by broker or advisor

6. Broker or advisor can confer with seller, legal and tax counsel about terms of sale

7. Broker or advisor understands and can depersonalize negotiations

8. Brokers and advisors enable buyers and sellers to access a broader pool of potential partners

9. Brokers and advisors have broader third-party prospective from done deals and failed deals

10. Brokers and some advisors know how to sell businesses; most sellers don’t

11. Business advice re contracts (exclusive of legal advice)

12.Buyer competition: Create and manage it

13. Coach sellers to answer buyers’ questions and concerns

14. Compensation basis is commission upon sale or partially contingent upon done deal

15.Compile necessary information about the business

16.Confidentiality preservation and knowledge of what/when to show buyers

17.Continual follow-up with buyers for decisions

18.Control buyers: Brokers and some advisors know what is appropriate and inappropriate

19.Dealmaking team: Referral to accountants, appraisers, brokers and lawyers

20. Deals almost die numerous times; Brokers and some advisors know how to revive them

21. Define best probable price and terms before going to market

22.Determine best offer price

23.Determine best selling price

24. Determine best time to offer business for sale

25.Develop marketing strategy and plan its implementation

26. Disclose, to buyers, sensitive information about the business

27.Explain and handhold seller throughout selling process 28.Financial analysis and recasting by broker or advisor 29.Help buyer obtain financing

30.Initiatecontactwithlikelypurchasers

31.Intermediary can speak for the seller

32. Maximize price buyers will pay for the business

33.Mediate and negotiate with buyers

34.Minimize interference with seller’s management of company

35. Most buyers start with business brokers and Internet searches

36.Negotiating strategy

37.Owner afraid of trying to sell by-owner

38. Owner does not have relevant capability to sell by-owner

39.Owner does not have time to try to sell by-owner

40. Owner does not know how to find buyers

41.Owner doesn’t know the probable price buyers will pay

42. Owner needs quick sale due to pressing crisis

43. Owner referred to broker or advisor by happy seller

44. Prepare owner to sell and prepare business for sale

45. Prepare two versions of the business profile (teaser and full)

46. Professional advisor recommends owner hire broker or advisor

47.Qualify and screen buyers

48.Receive, present and help evaluate purchase offers

49.Reconcile differences between tax returns and financial statements

50.Reduce frustration during offering and sales process

51.Seeing the business from the perspective of buyers

52. Seller does not have a network of contacts with access to buyers

53.Seller does not understand the implications between strategic and financial buyers

54. Seller doesn’t want to be distracted from running business

55. Seller fears adverse effect if premature disclosure (about sale) to key employees and lenders

56.Showcase the seller’s business to buyers

57.Time savings broker or advisor provides sellers

58. Understands local marketplace of businesses for sale

59.Understands seller’s industry

60. Unsolicited offer from a buyer requires expert help

61.Using broker is the only way sellers know about

62.Wants to get the highest price

© 2011 Ted J. Leverette (“Partner” On-Call Network LLC) Permission granted to reproduce this page if source shown.