Transferring ownership of a business is a complex process with many challenges to overcome such as determining a fair valuation of your company, making sure financials and other records are in order, and going through escrow and closing the sale. A business broker is a professional or company hired to assist in overcoming these challenges during the purchase and sale of businesses.
They can provide many benefits when you are looking to sell your company or grow through acquisition. Brokers will take on a variety of tasks focused on protecting their customers and key employees. Egan Security Group has compiled 5 reasons why you should hire a business broker when looking to buy or sell a business:
Act as a safeguard between buyer and seller:
Selling a business is one of the most important decisions you will make in your career. But it can be an extremely emotional process. Utilizing a business broker, you will have someone handling the negotiations for you. They will work as a buffer to communicate the transaction details with a neutral mindset.
Assist with financial preparation:
When considering selling your business, it is important to make sure your financial reports are in order and have accurate information. A broker can give you the tools and resources you need to maximize the company value.
Minimize Confidentiality Losses:
It is extremely important to keep the entire selling process confidential. If customers are aware of the potential sale, it may cause them to question the future of their accounts. New prospects may look elsewhere for service, effecting your incoming sales. When listing, it’s best not to identify your business name or give away any details that might allow people to recognize your company. A broker will ensure that proper documentations are in place before sharing any pertinent information or speaking about the sale.
Properly market your business and vet potential buyers:
Finding a buyer for your company isn’t as easy as it may seem. A key reason to hire a broker is making sure the right people are seeing your company is for sale and specifics of the deal. Your broker will highlight your strengths and market to as many potential buyers as possible. Brokers will also create marketing materials catered to specific buyers in your industry.
They can provide a full valuation and financial analysis of your company:
As a business owner, you may know your business’s worth. However, keep in mind that what you believe it’s worth and what someone is willing to pay may differ. A broker will serve as a neutral party, reviewing your financials and ensuring your information is accurate. Serious buyers will want to see a certifiable valuation on the health of your company.
At Egan Security Group, our Principal Patrick Egan has over 50 years of experience owning, running, growing, buying, and selling alarm businesses. That means he’s one of the few brokers in the industry who can bring real-world expertise to the table that will help you maximize value and exit successfully.
In addition to growing one of the largest independent alarm dealers in the nation, Patrick has over 200 successful business transactions on his resume. This combination of direct industry experience and business sales experience will help you make the most of your transaction and ultimately enjoy the rewards you’ve worked so hard to attain.