This is a frequently asked question heard regularly by many reputable agencies. There have been many horror stories from business owners who attempted to sell their business on their own. Many experienced owner operators have felt and understand that temptation.
Business owners that have tried this usually follow a script on how the unpleasant experience goes. Here is a common scenario in first person:
I placed an ad on a web site and craigslist and received multiple phone calls. When I was finally able to get back to them, they all seemed like tire kickers and not serious qualified buyers. Some just wanted my personal business information.
The few that I felt were half way decent buyers, looked at the business and never got back to me. Some showed up unannounced when I was busy.
That leaves the one or two who wanted to make an offer. Either they make a ridiculous low offer or I find out late in the process that they didn’t have the finance available and wanted me to modify the initial agreed upon terms.
All this effort has wasted my valuable time and money on something I know little about.
Further to this my sales are down because I have taken my eye off operations due to wasting my time on the sale process.
In a nutshell selling your business is harder than you might think.
Even if you do find a buyer, you might find yourself asking some of these questions:
- Did I value my business properly and get the highest possible price?
- Have I covered myself from getting sued because I might have accidently misrepresented myself or my business? This is usually not covered under standard business insurance.
- Is the landlord going to come after me if the new owner fails? What are my obligations to her in the future?
- What is the best way to expedite a loan for the buyer?
- How do I get the deal closed and exactly when do I hand over the keys to the new owner?
- If I am doing seller financing, how do I set it up and make it legally binding? What happens if they default?
In any case a broker can make this process easier, less time consuming and return a higher amount on the final sale price in most cases.
If your require broker services, contact Alert Property Group today.