Why Is It Crucial To Hire a (professional) Business Broker Before Selling Your Business
September 17, 2021
When you sell a business, a business broker is a professional who specializes in selling companies in an optimum fashion. Brokers serve a crucial role in selling a business as their job is to ensure the sale is a success from the start. Without a business broker, you run the risk of the transaction falling through.
Business brokers can assist with the following tasks:
- Evaluating whether or not it is an optimum time to sell
- Assessing the value of your company (note, it is essential to find a transaction advisor who is certified in valuations)
- Facilitating negotiations between buyer and seller
- In collaboration with your legal counsel, negotiating very detailed contracts
- In collaboration with your accountant and tax advisors, optimizing the deal structure
- Keeping the deal on track, and watching for, and reducing deal breakers
- Gathering all relevant information to compile a list of potential buyers that fit your criteria.
Business Brokers in Calgary Help Maintain Confidentiality
A business broker acts as a go-between for the buyer and seller. A broker can screen buyers from the beginning before divulging the location. Minimizing the exposure of your business to the market and allowing only qualified and ethical buyers to view your confidential information is critical.
Business Brokers in Edmonton Assist with Valuation
Unless a business broker is a certified valuation analyst, they should not be doing the valuation for your business. You should engage a broker who either engages a valuator or has one on their team. This ensures that you know what your company is worth and where it stands compared to other similar businesses that have recently sold. Once you know how much buyers are willing to pay for companies like yours, you will be better able to determine whether to market your business on not.
Business Brokers in Toronto Help with Marketing and Packaging
Large corporations and private equity firms looking to purchase companies may go through business brokers in Toronto looking for already established pharmacies. These agencies provide marketing and strategy services, thus increasing the chances of high-value offers coming your way.
Business Brokers in Calgary Understand the Continuity of Business
When you decide to sell your business, one of the most critical factors that come into play is business continuity. Buyers are typically buying the business’s goodwill, and they must preserve this goodwill in the transition. Business brokers in Calgary help their clients develop transition strategies that balance the desires of the seller and the buyer’s needs.
Business brokers in collaboration with certified valuators also help you understand the value of your business and provide professional advice on how to position yourself for purchase. They offer support and guidance throughout the negotiation process, protecting their clients’ interests at all times while facilitating the sale.
To learn more about business brokers in Toronto and across Canada, contact EVCOR today.
