It’s a topic no one wants to think about – the idea of hiring the wrong business broker and having your sale ruined.
But, it’s an unfortunate reality. Sometimes you might be tempted to hire someone you know to give them a chance to prove their worth. It might be a friend or family member who recently got their business broker’s license.
But, trusting the wrong person to put together your deal can be a nail in the coffin for your business. Particularly if they expose your company to buyers with competitive interests or leak the sale of your business to the wrong people.
Let’s take a look at all the ways an inexperienced business broker can ruin your deal so that you know what to look out for when making your selection.
They Don’t Get the Necessary People on Board
One of the key roles of a business broker is knowing when and how to reveal information about the sale to those who will play a role in the transition. When you work with an experienced broker, they will be able to tell you what to say to your CFO, CIO, employees, and the press when the time comes.
That way, the right people will be on board with the sale of your business. Without everyone playing on the same team, a sale could slip through your fingers.
They Don’t Provide Proper Confidentiality Agreements
If someone hasn’t done a lot of business transactions, then they may not be fully aware of just how far awry things can go without the proper confidentiality agreements. They may be too trusting with people who appear to be interested in the company.
An experienced broker knows that trust can only take you so far in business. They will put the proper documents in place to protect your company.
They Don’t Use Buyer Screening Processes
Once you begin to build a large database of potential buyers from working in the industry for years, your buyer screening process becomes smooth.
As an experienced broker, I can vet a buyer’s financials and secure their confidentiality while maintaining their interest in the purchase. While these processes may seem cumbersome and unnecessary to an inexperienced eye, I know how valuable they are.
They Forget to Include Important Documents
When you’re negotiating the sale of your business, it’s important that all of the records and information you present is accurate and complete. If you’re working with an inexperienced broker, it’s a lot easier for you to leave out an important record or figure from your reports.
Since I have prepared hundreds of reports for businesses in the past, I am able to spot discrepancies and missing figures much more easily than someone who is putting together a deal for their first time.
They Underestimate the Process
Learning about selling a business is one thing, but putting those lessons into practice is difficult. There is a lot of trial and error involved at the beginning.
As an experienced broker, I have navigated many deals in the past and know how to steer away from the rocks. I don’t underestimate what it will take to get to the finish line and I can help you get there.
Hire a Business Broker With the Right Experience
While it’s nice to help someone start their career, when it comes to selling your business, your entire livelihood is on the table. If the deal goes south because of a preventable mistake, it can have a lasting impact on your retirement and savings.
Make the right choice, hire someone with the experience to protect you during this important process. Contact me today for a free consultation about selling your business.