Are We A Good Business Brokerage Fit?
Wright Business Brokerage Fit Denver Colorado
It’s important for both business brokers and business sellers to ask the question are we a good business brokerage fit?
Many business owners are considering selling their businesses for a variety of reasons, such as it is any relationship involving a trusted advisor, it’s important to understand what a business brokerage firm actually does for you and identify the best business brokerage in Colorado that fits both you as a business seller and for the broker you choose. You as a potential seller of your business can start off by contacting the Colorado Department of Regulatory Agencies Division of Real Estate and do a broker license search to ensure they do indeed hold a Real Estate Broker’s license.
Next, you can check with the International Business Brokers Association (IBBA) to see if the broker has received the prestigious Certified Business Intermediary (CBI) designation or not. The CBI designation identifies an experienced and dedicated business broker and is awarded only to those Business Intermediaries that are committed to the highest level of professional development in the industry. Additionally, they must possess ethical values that are in alignment with the IBBA standards of professionalism.
Not only is it important for sellers to feel good about who is representing them, but it is also important for the broker to feel good about how they and potential buyers will interact with the Seller.
Both sellers and potential buyers will be dealing with the values, skill sets, experience, honesty, and integrity of the broker himself/herself. Notice I did not mention the brokerage firm, but the business broker in Denver that will be personally representing the seller and acting as a fiduciary.
When you consider the fact that typically 80% of a business owner’s wealth is in their business, you come to realize there is so much at stake when it comes to selling their businesses. About 80% of businesses that go to market never do sell. We have been fortunate throughout the years to have been able to sell over 86% of our listings.
Additionally, owners that use a business broker to sell their businesses can expect to earn 30% more upon the sale of their business.
If you live in Colorado, realize that not only are you much more likely to sell your business utilizing the services of a business brokerage Denver Colorado firm but that statistics prove you will earn 30% + more on the sale of your business utilizing the services of a professional business broker.
Things to consider when asking “are we a good business brokerage fit?”
A seller oftentimes does not understand how complex the process of selling a business is, and they need to keep running their business, focused, without distractions in order to accomplish this. This is where a professional business intermediary comes into play.
Not only does it take a while to properly prepare a business to go to market, managing the entire process takes patience, emotional intelligence, hard work, and determination.
In addition to determining a proper business valuation, a solid advertising and marketing plan, finding and vetting qualified buyers, showing the business, and negotiating on behalf of the seller maintaining confidentiality with customers, competitors, employees, and vendors is extremely important for most business sellers.
Additionally, throughout the business sales process, there are many emotions to manage between the buyer and seller – particularly throughout the buyer’s due-diligence process, as well as coordinating timelines, and considering the desires of each party.
There is also a regular collaboration with the broker and various strategic partners, such as accountants, attorneys, financial planners, and escrow agents, such as closing attorneys and title insurance companies.
So, are we a good business brokerage fit? As you can see, selling a business is a complex process that requires a unique skill set to successfully make it to the closing table and earn maximum profit.
Does any of this hit home?
- Considering selling your business now or within the next few years
- Not sure what your options are or if your business is “sellable”
- Planning for retirement
- Experiencing burnout
- Wanting a lifestyle change
- Looking for a change or other opportunities
- Dealing with health issues
- Going through a divorce
- Dealing with a partnership dispute
- Ready to cash out
- Uncertain about the future and you feel the timing may be right
- Having financial concerns/issues
- Convinced you have taken the business as far as you can or would like to
- Not confident that you have the right exit team in place
My Ideal Brokerage Clients:
- Are serious about planning their exits
- Motivated to sell now or within the next few years (and all the decision-makers are in accord)
- Are honest / fair / reasonable people of integrity
- Want Help: They see the value in hiring an experienced broker
- Have clarity on what they want to do post sell
- Have profitable businesses
- Small to mid-sized privately held businesses
- Revenues of $1 Mil. – $10 Mil.