Every entrepreneur at some point considers their exit plan – selling their business so they can reap the fruits of their labour.
With multiple options available to at least start the selling process (print ads, online ads, auction sites, directories, brokers) – where do you start?
Whilst there are plenty of directories listing businesses for sale, most are not specialists in particular segments or locations. If you’re new to an area, an insider’s knowledge of a suburb can be the difference between hitting the ground running and spending way too much time getting to know your market.
A good Sydney business broker will not only help you understand the market through their local knowledge and sector expertise, they will also make sure that your business is valued correctly and that any mitigating circumstances are addressed with clarity and full disclosure.
What Should I Look for in a Sydney Business Broker?
Fundamental questions to ask yourself before choosing a business broker to work with:
- How well does the business broker know you market?
- What experience does your business broker have selling businesses in your location and segment?
- Did you learn anything from meeting with the business broker about selling your business?
When you’re trying to understand the market and grasp how much your business is worth, your business broker will bridge the knowledge gap and bring clarity on any questions you may have.
Its this willingness to share that can reveal whether a relationship with a broker will be successful or not.
If you’re in the early stages of a sale, a business broker will have contacts in valuations, accounting and the legal profession that will be able to provide the expertise you need to ready your business for a successful sale & leverage a database of potential buyers who are interested in businesses for sale just like yours.
If you’ve been running your business for most of your life, chances are you have put a great deal of yourself and your emotions into the business. Understanding your position on aspects of the sale is critical in ensuring that the handover is as straightforward as the sale.
A good business broker will respect your expectations and manage those of the buyer, bringing together a successful scenario for both parties.
Not all business brokers are created equal, so what can you look for when deciding on who you should partner with?
Below you can find key elements you should always look for:
- Referees – ask past clients to get an understanding of how successful their experience was.
- Sales – ask the broker how many successful sales they have managed; a great indication of their experience and ability to move businesses through the sales process effectively and efficiently.
- Understanding of your market – finding a broker that knows your business vertical inside and out benefits you immensely by having insider knowledge on both buyers and sellers in that specific market, the more information you have at your disposal the better you can prepare yourself to get the best price possible.
Experience That Counts When You Need It Most
LJ Hooker Business Broking is Sydney’s trusted brokerage for businesses, providing innovative solutions to the readying and sale of businesses large and small. Our team of nimble specialists are able to address the needs of a sale from valuation though to the complexities of mergers and acquisitions.
Click here or call 02 9552 1111 (9am – 5:30pm Monday to Friday AEST) to speak to an expert business broker at LJ Hooker.