Many business owners believe they can do it alone when it comes to transferring ownership of a business. Below are only some of the reasons it is crucial to hire a business broker when buying or selling a company. Below we are going to explain to you how hiring a business broker benefits you.
Understanding the Actual Value of Your Business
Having a proper valuation of your business is so important when you are thinking about what you are looking to get out of it. 3CRE will look at your business, business model, FF&E and financials to project your value, what you should expect to get and help you plan where to go from there.
Confidentiality Is Key
Retaining confidentiality while representing yourself in acquisition or disposition of a business is nearly impossible. Word getting out about the sale of a business prematurely to employees, media or customers could severely damage that businesses’ reputation. A business broker can mediate negotiations while keeping the identity of your business a secret until you are ready to reveal it.
In buying or selling like most transactions, there is paperwork. This paperwork is necessary for any deal to take place. A business broker can retrieve and organize all the documents you need from your returns, permits, to your food license and FF&E. With 3CRE knowing what paperwork and tax documents will be needed for potential buyers, it will ensure the sale of the business is done in an organized smooth manner.
Vetting Potential Purchasers
Every person who wants to invest in a business in the Midwest is qualified to do so. It can be tedious and difficult to discern whether a prospective buyer has the financial capability, commitment and experience to finalize such a significant transaction. Your business broker has extensive knowledge and can ask the right questions to sort through the prospects.
Marketing and Exposure
Marketing a business correctly is crucial in the beginning of any sale. Just posting ads and providing a brief description of the company is far from enough. Business brokers develop, implement, and follow through on effective marketing plans and strategies based on the prospective target audience. With our customized marketing programs and database of interested buyers we can sell your business quickly and successfully.
National and local banks, SBA lenders, and private lenders often work with business brokers to help qualified buyers with financing. Business brokers have networks and connections within the lending industry, which help the buyers finalize their business deals.
Creating A Plan
The process of selling or buying a business is extensive and must be completed on time and in order. From the initial offer or LOI to closing, deadlines keep the transaction going according to plan. Business brokers keep the deal on track and moving forward until finalization.
Site Sourcing and Site Selection
We take the time to learn all about your business and help find the optimal site for your business to be successful. We have site sourcing tools and access to programs like Biz Buy Sell, CoStar, Loopnet and connections to be in the know about the undisclosed sites and businesses that are off market.
The Fees Outside of the Deal
Yes, there are additional fees, but if we can’t get you out of them at least we can prepare you for them. Such as assignment fees, your landlord can charge you (the seller) for getting out of your lease early. There will be lawyer fees whether you are a buyer or seller. Renewing your food and liquor permits, paying a security deposit and or prorating utilities for that month are all things outside of the deal we have you keep in mind. You will most likely get hit with at least one if not all, of the above, but a business broker can advise you when and how you deal with those fees.
Entrance and Exit
Whether you are entering a business or exiting, a business broker can help you not only in that process, but also with the plan for your future. 3CRE sits down with you and creates a plan on what your future business strategy is and should be. With your business plan, we do a review and a final projection for a successful business. In your exit, we have the right experience and connections to help current owners and operators to plan their exit strategy.
3CRE’s business brokers have 60+ years of combined experience and could be the difference between an unsuccessful sale, and a successful transaction.