Top Advantages of Using a Broker to Sell My Business in South Africa
“I want to sell my business, but do not want to deal with “tyre kickers” or sacrifice my time to answer calls from interested parties.” “I have heard that using a broker to sell my business has several advantages to overcome the issues I mentioned, is there any truth in it?” This and related questions are often asked by retailers, franchisees, and entrepreneurs who are ready to move onto new ventures or retire from their particular businesses. We briefly look at the top benefits of using a broker to help sell your company, and thereby, answer the frequently asked question: “Is it beneficial to sell my business with the help of a broker?”
Privacy And Confidentiality
The broker acts as an intermediary between you and potential buyers. Instead of having to answer the same questions with every caller, you can focus on your business while the broker screens calls and interested buyers. The broker answers the questions and only introduces serious, pre-qualified buyers. He or she also handles the marketing aspect without disclosing the identity of the entity on the Internet. A profile is created that contains the relevant information for the initial introduction to potential buyers.
Minimise Time Away From Operations
Listing, profiling, marketing, and screening take up valuable time. You can maintain your operations while the broker performs all the necessary checks, advertising, and introductions. In essence, if you have to sell your business without the help of a broker, you need to take time away from management to handle the tasks performed by the broker.
Large Buyer Base
Chances are that you have not developed an extensive network of buyers for your particular business. Instead, you have grown it to be successful. The broker focusses on the selling of commercial entities. As such, he or she builds up an extensive database of potential buyers. In addition, the broker firm has a national footprint and the resources to advertise the business for sale to many potential buyers.
The broker has the expertise to market and present the relevant information to help the buyer make an informed decision. He or she understands which aspects are important and highlights such when introducing the opportunity to buyers. If you want to get the best possible price, then the expertise offered by the broker is essential.
Closing The Sale
Instead of the process never coming to a close, you have a broker who knows how to sell and bring the deal to a successful closure. Sales agreements, confidentiality agreements, assistance with finance applications, background checks, FICA, and more all form part of the services offered by the broker.
Finance Application Assistance
If your business is worth R500 000 or more, it can be difficult to find a buyer with the required cash at hand to buy it. The broker makes it possible to sell to a buyer that already has the funds available or that qualifies for finance by helping the buyer with information about finance options. This improves the chances of a successful sale considerably.