The simple answer, no.
Selling a business does not mandate a broker.
As a business owner, you will be selling a product that has been your heart and soul for many years. And you want to get the price that it deserves but also give it to a buyer who will take it to new heights.
Of course there are situations where a broker may be needed, due to the enormity of the deal or complex matters. But at the end of the day, the point of hiring a broker as a business owner is to find you a buyer. That is all. All the other logistics including organising the sale paperwork and showcasing your business will be left to you or other experts you choose to hire.
So let’s flip it - why do you not need a broker to sell your business?
Not all brokers are specialisedAs you enter the broker market, you will find that many brokers are not specialised in your particular industry. They thrive on selling businesses, but that doesn’t mean they know your industry inside and out. The best person who knows your industry and your business will be … you.
Not needed in certain situationsIf you are selling to your family or friends, using a broker may not be necessary at all. Or if your company has a lot of liabilities and debts to pay off, the broker is going to add a further cost to your already struggling business. It may be better to cut your losses and do the sale yourself.
Easier than you thinkThis is the most important point that business owners tend to forget. To sell your business without a broker is actually not as difficult as you may think. Especially since there are now a range of online platforms, like business-sale.com that can be used to advertise your business and find a buyer pool. Kip Mann, a Leeds-based entrepreneur found selling a business through an online platform got responses very quickly and the price to use the service didn’t make a dent at all in the overall sale price.
You are the best negotiator for your businessYou may think you need to have excellent negotiating and sales skills but remember, you built this business. Who could be better at showing it off to the buyer than you? Once you hand it over to the broker, the personal touch disappears almost instantly. A broker will not be emotionally invested in the sale like you and it is also unlikely that they will spend as much time on selling your business as you may hope. Selling your business on your own may actually mean you sell the business faster than if you were to have a broker.
Cut out the middlemanYou have faith in your business, show that to your prospective buyers. There is no reason why you can’t sell your business without a broker. In fact, you may find that you save a great deal of time and money by doing it on your own.
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