Ask The Help Of A Business Broker When Choosing The Best Time To Sell Your Business

This is a very difficult question for any business owner. Is it when you want to retire? Or is it when you gain a worthy person to replace your position? Or is it when the business is at its peak?

When you have been running a business for quite some time, you turn to a point when you ask yourself, ‘When is the best time to sell my business?’ This is a very difficult question for any business owner. Is it when you want to retire? Or is it when you gain a worthy person to replace your position? Or is it when the business is at its peak?

If you want changes in your life and decide to sell your business, you might consider speaking to a business broker that can give you ideas on how the economy and the market are doing these days. Working with a business broker is helpful when you want to sell your business faster. But not all business brokers are the same so do a little research before deciding on one.

Benefits of Getting a Business Broker

Business brokers act as mediators between the seller and the potential buyer. They could be an individual or a company that assists in the purchase or the business process. 

Choosing the best time to sell your business is a major decision and with the help of a business broker, you can save time and possible risks if you do the process alone.

Below are some of the benefits of getting the help of a business broker.

  1. Provide a competitive price for your business

Business brokers have extensive knowledge of what the market is currently doing and what is the worth of different businesses. They can give you an accurate value for your business that can highlight competitiveness in the market and also maximize your sales profit. Without their expertise, business owners can price their business either way too high or too low which can result in problems or a lack of potential buyers.

  1. Practice confidentiality

We all want confidentiality in all transactions that we do. And this is one of the benefits that a business broker can definitely give you. Having a business broker means you are working under a confidentiality agreement. As a part of their expertise, they know how to market your business, look for potential buyers, and at the same time, still keep confidential information intact.

  1. Coordinate paperwork

When selling a business, you need to deal with a lot of documents. There are details to consider and legal requirements to do. All these will be handled by the business broker for smoother transactions. They are also experts in negotiating and know the particulars in closing business sales. Most business owners don’t have the time or enough knowledge about all these business processes, so having a professional business broker is a great way to facilitate these.

  1. Know a larger audience

In many instances, business brokers already have a database of buyers that they can use to list your business. They can find you your buyer faster than doing the work yourself. Choose a business broker that has lots of experience to assist you in selling your business faster and properly.

DDDC Business Advisory are experts in exit readiness planning towards business growth, business sales and purchasing processes. Our team can handle all the transactions for you so you can stay focused on other business matters.

Choosing the Best Time to Sell Your Business

Selling your business can be part of your business exit plan from the start or it could be that another business brought the idea to you. Choosing the best time to sell your business is a complicated matter. It is hard to answer but what matters most is the best timing to do the business sales.

Here are some key questions to ask yourself when you are choosing the best time to sell your business.

  1. Is your company ready to sell?

This is the first thing that you need to consider. The best time to sell your business is when your business is growing. As stated by Robert[3], a content writer of Indinero, what a potential buyer is looking for is the business history of growth. They want to catch businesses on their way to the peak and not during the pre-growth period or post-growth where there is no visible business revenue. The business sales and trends within the last three to five years of the business are factors in gaining buyer’s attention and key deciding components that will affect their willingness to buy your business.

  1. What market factors can affect the sale?

Check the market factors that matter in the process of selling your business. See if these factors will work for you or against you. Get a look at the number of businesses that are the same as yours. How many of them were sold or acquired in the past years? Getting an idea about the record of business sales similar to yours can make your business more appealing to potential buyers. You can decide to sell your business during this time before some market factors change again.

  1. Are you prepared to sell your business?

Decide on what you will do after the business sale. According to Richards[4], an expert in business sales and mergers, business owners who know the next step they will take after selling their business are more likely to achieve favourable results.

Sources:

[1] Perry, B. (2019, July 25). 3 Benefits of Utilizing a Business Broker. Businessing Magazine.

[2] Tycoonstory Media. (2020, August 29). 3 Broker Benefits For Your Business.

[3] Robert, C. (2019, September 20). When Is the Right Time to Sell Your Business? inDinero.

[4] Richards, D. Is Now the Right Time To Sell My Business? AllBusiness.

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