Blake Taylor
What Is the Best Way to Sell a Profitable Business?
Selling a profitable business is one of the most significant financial decisions you can make as a business owner. A …
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Buying a business is far more complex than purchasing a piece of real estate. You need to find the right company and seller, ensure a proper procedure for a successful purchase, negotiate and ultimately secure the best deal from the transaction. As a potential business owner or investor, you want the best value for your money. Not everyone has the expertise and reach to target the right people and engage a willing seller. That is where a broker comes in. This article highlights what you need to know about buying a business with a broker.
A business broker is professionally trained to facilitate the buying and selling of businesses. If you are selling or buying, a broker will be an invaluable asset, guiding you through current valuations, market conditions, negotiation and other buyer-seller best practices that ensure a streamlined transaction. Without expert guidance, navigating the complexities of buying a company can be a daunting task. A broker brings experience, connections and steers you through paperwork and legal obligations.
Business brokers act as intermediaries connecting buyers and sellers. Their specialized services help individuals who may not have industry experience buy and sell companies smoothly, efficiently, legally and at the best possible value. A business broker offers two services:
By taking on the complexities of the buying and selling process, brokers help you secure maximum value out of the transaction, minus the stress of personally handling the process.
Business broker services for buyers come with several advantages that can make the process efficient, safe and successful. Here are the key benefits of using a broker when buying a company:
You can easily sign up for a home listing and review potential homes for sale. Businesses work differently. They possess sensitive information that could harm or alarm clients, employees and other parties if they were to be publicly listed. Brokers understand how to market a company confidentially without disclosing its identity and sensitive information.
That means buyers will not have an easy time finding a list of profitable businesses for sale, as they are usually not publicly advertised. Brokers often have access to exclusive listings and networks, providing buyers with a wide pool of high-quality and vetted options.
Not every interested individual is the appropriate match to work with. Brokers prequalify sellers to ensure they are serious and capable of completing the sale legally. They know what red flags to look for to help protect your interests, such as hidden liabilities, unrealistic growth claims and other undisclosed issues within the business.
Investing in a company is a decision with substantial financial implications. Brokers possess in-depth industry knowledge and understand the specific questions, documents and processes required to ensure a safe and successful transaction. They will help organize everything, from financial reports to contracts and licenses, to ensure proper verification.
A broker provides professional support to help negotiate price, terms, financing options and contingencies with the aim of securing a favorable deal. They have experience in deal-making and will help both parties reach an agreement in a fast, smooth and convenient way. With a good grasp of business valuation, you can count on them to spot inflated numbers, whether in the selling price or revenue projections.
Brokers oversee the entire process, work closely with legal and financial professionals to ensure all conditions are met, and the transaction is conducted in a legally compliant manner. Since they understand how deals progress from start to finish, brokers keep the transaction on track and communications streamlined between lawyers, accountants and sellers. Their involvement eliminates delays and potential confusion, resulting in a swift and efficient deal closure.
Wondering how to find a business broker for buying a company? Choosing a business broker means doing your homework so you work with professionals who understand the industry you want to buy in and are a good fit for you. Here are things to consider:
If you are interested in working with us to acquire a company, start by reviewing our businesses for sale page. Consider the types of companies you are interested in and whether your background and skills are a good fit to acquire a particular business and run it. Then, fill out our online NDA for one or more companies you might want to purchase, and provide us with your financial information and background.
One of our brokers will provide you with details on businesses that you are qualified for and interested in. In terms of financial qualifications, some sellers will accept 10% to 20% of the purchase price as a down payment with bank financing, and others want to sell to someone who has the funds available for the full purchase price for a faster sale. As such, the amount of money necessary to purchase a company varies depending on the particular business and owner requirements.
Once you have reviewed the confidential information on a company, contact the broker if you are interested in pursuing one or more of the companies that you have reviewed. The business broker will go over some of the details and questions that you might have and see if it is appropriate to set up a meeting or phone call with the seller.
Working with a reliable business broker can be the difference between a stressful transaction and a smooth, successful one. At Synergy Business Brokers, we value quality and professionalism. We are an award-winning brokerage that works with qualified buyers and sellers worldwide and across select industries.
Once you sign our confidentiality agreement, we will proceed with the entire acquisition process without requiring any payment from you until the sale is finalized. Review listings by industry or listings by location to find a business that meets your needs.
