4 Reasons to Sell Your Business Through a Broker
When the time comes to sell your business, there are two approaches you can choose to take. You can sell the business yourself, or you can hire a broker to sell it for you. Most business owners are DIY enthusiasts, so your first thought may be to do this yourself, too. However, there are some real benefits to hiring a broker.
1. A broker can more accurately price your business.
It's tough to know what your business is worth. As the owner of your business, you'll have the tendency to over-price it since you know how much work you've put into creating it. If you do overprice the business, serious buyers are less likely to even look at it. Having to lower the price after it's been on the market a while looks bad, too. Buyers will wonder what's wrong with it. A broker can more accurately price your home and list it at the correct price the first time, which will help ensure it sells promptly.
2. A broker will market your business to the right people.
Brokers tend to know what kind of buyers are interested in various types of businesses. This will help them target their marketing. The target market might not be what you expect, either. For instance, if you own a bottle-making company, you might assume other bottle making companies would be your most likely buyers -- when actually, a cosmetics company might buy your business and use it to make their own packaging. Marketing to the right people will help you find a buyer faster.
3. A broker knows how to handle the legal paperwork.
Selling a business is complicated from a legal standpoint, and every deal is a little different. If you fill out a document incorrectly, you might later be sued or find that you're held responsible for something the new owner does. A broker will make sure all of your I's are dotted legally. If needed, they will contract with a business lawyer.
4. A broker will answer buyers' questions along the way.
Buying a business is a big endeavor, so of course, interested buyers are going to have a lot of questions. It could take you all day to answer them! When you hire a broker, they will do this for you, so you can go on living your daily life.
To learn more about selling your business through a broker, reach out to a brokerage firm such as Sacramento Business Sales.
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