Just like my passion for playing the drums professionally, which is all about rhythm and timing. I feel that selling a business is no different. The rhythm, being the market, and the timing is connecting the right buyer with the right business and then working closely with both the buyer and the seller to close the sale promptly. There is no ‘hit and miss’ approach in sales, sales is a science. The strategies and techniques adapted to each individual business sale will differ because each business is different within their specific industry. Therefore, we will tailor a marketing strategy to suit each business we sell. Benchmark’s sales techniques have been tried and proven over literally thousands of successful business sales that have been completed nationwide.
W hat are the key expectations Sellers are looking for when engaging a professional business broker?
Experience has taught me that Sellers like:
1. Trust, 2. Communication, 3. Professionalism, 4. Support, 5. Respect and 6. Confidentiality from their broker.
The reasons behind a business owners decision to sell could be many and varied, and often include; heavy financial commitments, a partnership split, health reasons, or a forced sale,… Whatever the reason behind the owner’s decision, my time in this industry has taught me that a majority of the sale relates to psychology…. especially if the Seller is emotionally attached.
There is a formal process to undertake to achieve a great result when selling – and the first step is to remove the emotion. That’s why engaging a professional business broker is so important – they remove all emotion.
The next point is to prepare. A business broker should be aware of what has transpired prior to a business being offered for sale, and in some cases (depending on size and complexity of the business) this could take months or even years to work with the business owner to prepare an “Exit Strategy”. This also involves conducting a “health check” of the business, with a review of facets such as; the Legal, Taxation, Accounting, Financial Planning, Insurance and HR requirements. With this completed first, the outcome is more simply and easily achieved.
I have found that when a Motivated Seller and Motivated Broker work together – along with the Seller’s solicitor and accountant (both engaged early in the sales process), downtime is reduced and the Buyer remains engaged and focused through to completion.
What options are there for an “Exit Strategy? This is where the experience of the broker comes in by presenting the best option to achieve a sale. Sometimes the best result can often be achieved through different methods such as a merger, or a strategic acquisition by a competitor or investor, or venture capital (or private equity) firm. It is sometimes a good idea to consider talking to a family member, or to consider a “Management Buy Out”, or a “Management Buy In”. These options can help to produce great results for business owners. Earn Outs, Roll-Up’s, Vendor Finance options or a “Put and Call”. Sellers can become scared of sophisticated business exit options – but all aspects should be considered when planning the eventual exit from a business. This is the type of skill and experience that I offer to business owners.
Let me help you negotiate a win-win outcome! Contact me here.