NO AGENT-NO FEE VERSUS “YOU GET WHAT YOU PAY FOR”
Time and time again I see (or hear) of business owners that are trying to sell their business – to save on fees. A business is not like a house or car sale, there is so much more to understand, not just about the business but the market, possibly legislation changes, the methodology to prepare the sale price.
What disturbs me is the impact on the business that directly effects the business owner whilst they’re dealing with buyer enquiries. I have seen it many times where the revenue has dropped because the owner has been pre-occupied with selling their business (something they have no expertise in) to the point that they were exhausted with the process by the time I got to them. This has cost the business owner time and money in the long run.
You get what you pay for…
- An agent/professional business broker should be licenced. This takes time, money and continued study.
- Most agents (depending on their licence) are required to work under a principal.
- If an agent holds a full licence, then they are required to maintain 100 CPD points per annum – further training.
- Most brokers attend around 3 to 4 seminars, conferences or industry specific training per year – to stay abreast of everything.
Why engage a broker in the first place? A professional business broker…
- knows that a business sale is not by chance (gambling) – selling businesses is a science.
- can identify buying signals and respond appropriately.
- qualifies buyers before doing anything.
- know how to close out a sale.
- understand that there are many types of buyers, and just as many reasons why buyers buy – it will shock you to learn that it’s not always about money.
- Is the professional within the industry of selling businesses?
- Is not emotionally attached to a business.
- negotiates using experience, logic, training and a proven sales methodology.
- networks within the industry and likeminded professionals and most have a data base of buyers.
- can properly prepare and present information and data – in a timely and logical sequence.
If an agent says to a seller “If I was to get you the money you want, you would be happy to pay my commission wouldn’t you?” – The seller is going to say yes. I think you can agree, that hiring a professional business broker, to work together with the Seller will save time and maximise the sales experience for the Seller.
REIQ Business Broker of the Year 2016 & 2015