5 Benefits of Using Professional Brokers When Selling Your Business in South Africa
Of course, you want the best price when selling your business and since you do not have the luxury of time to spend months on finding the right buyer, you need professional help to appraise, market, and sell your business. You may still be tempted to go the route alone and market the entity without the help of a professional. However, consider these five distinct benefits of using business brokers.
1. Professional Appraisal
As the owner, you should know all about your operations. This is certainly beneficial for profit generation, as you understand every detail of the entity. However, when it comes to an objective and fair appraisal of the entity, you need the expertise and objectivity of another party, who understands the market and who has completed hundreds of appraisals on entities like yours. Indeed, such an appraiser uses proven valuation formulas to determine the true and market value of the business. Instead of guessing or perhaps simply pricing the entity according to what you see other entities of similar sizes and years in operation have done, have a professional team appraise your entity. This ensures the best price if you want to sell your business.
2. Marketing Resources
You most probably don’t have a list of potential buyers ready to pay the price you want when you first decide to sell your business. To this end, you will have to advertise in several publications, approach potential buyers in person, and advertise online. Even then, you cannot compete with the marketing resources of well-established brokers with a national footprint. Such brokers have websites, social media pages, long-standing relationships with financial institutions, and extensive networks. They have a database of pre-screened buyers and they have professionals to approach potential buyers directly.
3. Time Is of the Essence
It is such a cliché and, yet, it is true. Unless you have the time to sell your business without having to focus on daily operations, employee relationships, potential investments, and profitability, it is best to outsource the process to brokers who are dedicated to the task. Well-established firms have offices across South Africa and the resources in place to ensure thorough marketing. They also have experts to ensure seamless sales processes.
4. Pre-Screen Potential Buyers
Many people browse for opportunities, but not all of them are qualified buyers and several more are not yet ready to make substantial investments. Several more don’t have the required finances, whilst others simply take chances. Brokers pre-screen buyers. They take the calls, handle the email communications, and conduct the pre-qualification tasks. They thus help you to save time and avoid having to deal with unqualified buyers, browsers, and even potential scam artists. The brokers also help to put confidentiality agreements in place and thereby protect your interests.
5. Essential Contracts
Even if you work with contracts on a daily basis, you most probably don’t work with business sale agreements on a regular basis. Every entity is unique, so a generic sales template simply doesn’t cut it if you want to sell your business. Brokers will provide you with the required contracts to ensure validity and protection of your interests. Such contracts address every aspect required to minimise risk and to ensure a successful outcome.
Don’t delay. Get in touch with our brokers for friendly and professional assistance to sell your business.