WHY SHOULD I USE A BUSINESS BROKER?
- Maintain confidentiality
- Knowing and gathering pertinent information
- Recasting financials
- Valuation knowledge
- Understanding of goodwill value (70%-90% of total value)
- Maximizes the value of the company
- Overview of tax consequences to the parties, relationships with professional experts
- Clarify what is being sold:
- Identify, describe the historical
- Identify, sell the future
- Market knowledge, understands the market
- Multi-pronged marketing strategies
- Data base of prospects
- Understanding of various financing options, contacts with appropriate specialists
- Affiliations with other competent professionals in the Business Broker community
- Negotiating skills and understanding emotional issues of the parties
- Buffering between parties, thereby allowing seller time to make reasonable decisions
- Ability to better control the issues
- Coordinate and facilitate sell-side and buy-side activities and associated specialists, advisors:
- landlord
- CPA’s, accountants
- tax attorney(s)
- transaction attorney(s)
- insurance carriers, agents
- lenders
- escrow processes, officers
- Permits the seller to continue focus on running their business
- Not emotionally tied to the business, maintains objectivity in process and transaction