The Benefits of Working with a Business Advisor
The endeavor of putting your business up for sale sounds so simple, and yet so many attempt to independently do so and struggle to achieve all their originally stated objectives. The process of searching for a buyer, negotiating an agreement, and executing the closing is significantly more complicated than anticipated with many pitfalls to avoid to reach a completed transaction. Selling a business can be a distraction to a business that is simultaneously conducting its daily operations. The assistance of a competent advisor can yield many benefits, including:
CONFIDENTIALITY: Maintaining confidentially is often vital to a seller. If your employees, competitors, customers or suppliers find out that you are selling your business, the value of the business could be damaged significantly. An advisor acts as an intermediary to keep everything confidential until the appropriate time.
BUSINESS CONTINUITY: Selling a business is time-consuming for an owner who already wears many hats. By taking on the additional workload of selling the business, essential functions will get less attention and possibly damage the business value. For example, the prospective buyer candidate qualifying process takes significant time and effort with days or even weeks of time spent on locating serious buyers.
EXPOSURE, ADVERTISING & MARKETING: The key in selling is finding the right fit. Increasing the number of potential buyers increases the probability to find a match. An advisor’s business is to utilize methods, tools, and connections to increase the exposure of your business. An advisor can leverage its experience in deploying marketing or advertising strategies more quickly and efficiently than an independent business owner.
ENTHUSIASM & EFFORT: An experienced advisor aids in getting people interested in your business and provides the necessary follow up effort through persistence and professionalism to get buyer offers for the seller, and to drive a sale to completion. Did you know? Only <2% of inquiring buyers will ultimately buy the business they inquired about.
NEGOTIATING POWER: An intermediary allows the seller to maintain its negotiating position more easily, and are skilled at negotiating business transactions. A third party assists by encouraging a buyer to work through differences to facilitate quicker resolution.
VALUATION | PRICING: Valuing a business is far more difficult and complex than valuing a house. Every business is different, with hundreds of variables that can impact its value. Advisors have access to business transaction databases that can be used as price guidelines. The advisor also helps sellers to set the right asking price for their business, and helps buyers understand how to see the inherent value in the business.
STRUCTURING & OFFERS: An advisor helps to develop terms that work for all parties and counsels a seller on their options of accepting, countering or rejecting the offer.
CLOSING: The advisor’s business is to close transactions as quickly as possible, as time is a primary deterrent to reaching an agreement. The faster the sale, the lower the risk of employee problems, customer defection and predatory competition. An experienced advisor also helps buyers obtain financing pre-close to alleviate any issues.
For more information or to schedule a complimentary consultation please contact BridgeLane Advisors, at firstname.lastname@example.org.