It’s true it is tempting to sell a business on your own without the help of an outside consultant or advisor, and it is easy to tell yourself “I know enough people in the industry to get a fair valuation.” After all, if you do this on your own you won’t have to pay a fee or commission.
This is why GWS Consulting’s tagline says “in the World of Business, there are a lot of Sharks, get one on your side!” Ultimately those businesses are looking to get the best opportunity at the best price and have their companies best interest at heart, not yours. Some of the things GWS can help you with in the process:
- Get a Better Price. You may save on a fee or commission by “doing it yourself,” but at what ultimate cost? A broker will help make sure you’re getting a fair valuation for you business and will have data and analysis to back it up. Aside from pricing there are other determinant factors in the deal structure that a broker can support you with.
- Get Ready to Sell You Business. During the process you’ll want to get your financial statements organized and timely, valuation on fixed assets, appraisals where necessary, processes in place, and getting the right things ready to attract the buyers you’re after.
- Guide you through the process. The process of selling your business can take many steps and in some cases many months. At times it can be complicated and confusing and stressful. Hiring someone who’s been through it to help you understand and walk you through the steps while having your best interest at heart.
- Selling your business is a very personal decision, and rightfully so. A business broker doesn’t have the emotional attachment and can give you an objective opinion on terms, and price that will help you understand what the market says is “fair.” It will always be your decision, you can have comfort knowing that you’re going into the decision making process with as much objective data as possible.
- Time and capacity. You spend full time or more running your business, selling a business is its own full time job. If you were to entirely neglect your duties as the business owner to pursue the sale would the wheels fall off? Would it hold together but production might suffer? Maybe you wouldn’t see any impact, but you would be working yourself to death. Let someone help you...there are only so many hours in the day.
- Industry connections. You may have spent your entire career within one industry and know many or all people involved. Brokers often have a financial background and network that extends to investment banks, investors, PE groups, and large strategic organizations that they can often tap into to help you sell your business and get the best valuation.