62 Reasons for Sellers Hiring Brokers

Pricing your business and selecting a Business Broker are the two most important things an owner will have to do, in preparing to sell their business in Florida.

This comprehensive study why sellers hire brokers was conducted  by Ted J. Leverette with “Partner On-Call” LLC. Ted is not a business broker, but is a consultant to owners looking to sell their businesses.

62 Reasons For Sellers Hiring Brokers

1. Access broker’s database of potential buyers
2. Advertising run and paid by broker
3. Affiliated brokerage offices will attract more buyers
4. Assistance during closing
5. Broker runs background check on buyers
6. Broker can confer with seller, legal and tax counsel about terms of sale
7. Broker understands and can depersonalize negotiations
8. Brokers enable buyers and sellers to access a broader pool of advisers
9. Brokers have a broader 3rd party prospective from past deals -good and bad
10. Brokers know how to sell businesses – most sellers don’t
11. Business advice regarding the contracts
12. Buyer competition – create and manage it
13. Coach seller how to answer buyer’s questions and concerns
14. Broker’s fee only paid on successful sale and closing
15. Compile necessary information about the business
16. Confidentially issue in regard to what/when to show a buyer
17. Follow up with buyers to close the deal
18. Control the buyer -brokers know what is and isn’t appropriate
19. Deal – making team effort w/accountants, lawyers and other brokers
20. Deals frequently die – a good broker knows how to save them
21. Advise seller on fair asking price and possible terms before going to market
22. Determine best asking price with sellers help
23. Evaluate best offer to buy with seller
24. Determine best time to offer business for sale
25. Develop marketing plan and implement it
26. Disclose to buyers, sensitive information about the business
27. Explain and handhold seller throughout selling process
28. Financial analysis and recast by the broker
29. Help buyer obtain financing
30. Initiate contact with likely buyers
31. Broker can speak for the seller
32. Maximize price buyers will pay for business
33. Mediate and negotiate with buyers
34. Minimize interference with seller’s every day management of the business
35. Most buyers start with business brokers and internet searches
36. Negotiating strategy
37. Owner afraid of trying a FSBO ( For Sale By Owner )
38. Owner does not have relevant capability to FSBO
39. Owner does not have time to FSBO
40. Owner does not know how to find buyers
41. Owner does not know the probable price a buyer will pay
42. Owner needs quick sale
43. Broker referred to seller by happy seller
44. Prepare owner and business to sell
45. Prepare a business summary/profile
46. Professional adviser recommends owner hire a broker
47. Qualify and screen buyers
48. Receive, present and evaluate purchase offers
49. Reconcile differences between tax returns and financial statements
50. Reduce sellers’ frustration/stress during selling process
51. Representing the business from the buyers perspective
52. Seller does not have network of brokers with access to buyers
53. Seller does not understand the differences between strategic and financial buyers
54. Seller does not want to be distracted from running the business
55. Seller fears adverse effect from premature disclosure (about sale) to employees/creditors
56. Show case the sellers business to buyers
57. Time savings brokers provide sellers
58. Broker understands local marketplace for businesses
59. Broker understands seller’s industry
60. Unsolicited from a buyer requires a brokers expert help
61. Using a broker is the only way sellers learn about the selling process.
62. Seller wants to get the highest price

Compiled by Ted J. Leverette  with Partner On-Call Network LLC