Learn how a broker can help you sell your small business in six ways, from valuation to closing. A broker can facilitate the sale and avoid costly mistakes.

Itâs important for sellers to recognize that they might not know some of the important aspects of selling their business. We are all masters of our craft. But if that craft is not âselling a businessâ there will be plenty of speed bumps. A qualified broker can help you see the questions you arenât aware of that need to be asked.

How can a broker help you sell your small business?

Selling your small business can be a complex and time-consuming process. You may have to deal with valuation, marketing, negotiation, due diligence, legal issues, and more. That's why hiring a broker can be a smart move to help you achieve your goals and avoid costly mistakes. A broker is a professional who acts as an intermediary between you and potential buyers, and provides various services to facilitate the sale. In this article, we'll explain how a broker can help you sell your small business in six ways.

1 Assess your business value

One of the first steps in selling your small business is to determine how much it is worth. A broker can help you with this by conducting a business valuation, which is an analysis of your financial statements, assets, liabilities, market conditions, and industry trends. A broker can also advise you on how to improve your business value and attractiveness, such as by increasing your cash flow, reducing your expenses, or resolving any legal issues.

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Christopher Leonard, MBA

President at Agronomix Software, Inc. | MBA Entrepreneurship & Innovation | Business Analyst
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Valuing a business is a difficult, you have spent years building something you care about and feel it should be worth millions for all the time you put in. Yet when the offer comes a potential buyer does not see the past years only the current revenue. With hindsight I wish we had used a broker as it would have taken away some of the shock when the buyers evaluations fell short of our expectations. Having a broker do a detailed analysis of our financials as well as a market analysis would have helped develop an understanding and create realistic expectations before talking to a buyer.

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2 Prepare your business for sale

Another way a broker can help you sell your small business is by preparing your business for sale. This involves creating a confidential business profile, which is a document that summarizes your business history, operations, products, services, customers, competitors, and strengths. A broker can also help you gather and organize all the relevant documents and records that buyers will need to review, such as tax returns, financial statements, contracts, leases, licenses, and permits.

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3 Market your business to buyers

A broker can also help you sell your small business by marketing your business to potential buyers. A broker can use various channels and methods to reach out to qualified buyers, such as online platforms, trade publications, industry associations, and personal networks. A broker can also screen and vet buyers to ensure they have the financial capacity and the interest to buy your business. A broker can also handle the initial inquiries and communications with buyers, and protect your confidentiality and privacy.

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Randy McPhillips â˜€

Agency Principal
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Itâ€™s important for sellers to recognize that they might not know some of the important aspects of selling their business. We are all masters of our craft. But if that craft is not â€˜selling a businessâ€™ there will be plenty of speed bumps. A qualified broker can help you see the questions you arenâ€™t aware of that need to be asked.

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4 Negotiate the best deal

A broker can also help you sell your small business by negotiating the best deal for you. A broker can leverage their experience and knowledge of the market to advise you on the optimal price and terms for your business. A broker can also help you deal with multiple offers, counteroffers, contingencies, and concessions. A broker can also act as a mediator and a buffer between you and the buyers, and help you overcome any challenges or conflicts that may arise.

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5 Manage the due diligence process

A broker can also help you sell your small business by managing the due diligence process. Due diligence is the process of verifying and validating the information and claims made by both parties during the negotiation. A broker can help you prepare and provide all the necessary documents and evidence to the buyers, and answer any questions or concerns they may have. A broker can also help you review and verify the documents and evidence provided by the buyers, and ensure they meet the agreed-upon criteria.

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6 Close the sale successfully

A broker can also help you sell your small business by closing the sale successfully. A broker can help you draft and finalize the purchase agreement, which is the legal contract that outlines the details and conditions of the sale. A broker can also help you coordinate with other professionals, such as lawyers, accountants, bankers, and escrow agents, to complete the legal, financial, and administrative aspects of the sale. A broker can also help you transfer the ownership and assets of your business to the buyers, and provide any post-sale support or guidance.

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7 Hereâ€™s what else to consider

This is a space to share examples, stories, or insights that donâ€™t fit into any of the previous sections. What else would you like to add?

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Directory

How can a broker help you sell your small business?

1

2

3

4

5

6

7

1 Assess your business value

2 Prepare your business for sale

3 Market your business to buyers

4 Negotiate the best deal

5 Manage the due diligence process

6 Close the sale successfully

7 Hereâ€™s what else to consider

Small Business

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Directory

How can a broker help you sell your small business?

1

2

3

4

5

6

7

1 Assess your business value

2 Prepare your business for sale

3 Market your business to buyers

4 Negotiate the best deal

5 Manage the due diligence process

6 Close the sale successfully

7 Hereâ€™s what else to consider

Small Business

Rate this article

Thanks for your feedback

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