Many people have never had to deal with Business Brokers. Why? Well, it’s not because Business Brokers are unfriendly or out of reach (come and visit us at Core and we’ll chat it over a cup of coffee!). It’s purely because most people haven’t bought or sold a business… yet. In the world of business sales, using a Business Broker to facilitate the successful sale or purchase is vital. However, we’ve heard a few myths floating around out there and thought it was high time to do a Business Broking – Myth Busters blog to give you the low down on what is fact and what is fiction.
Here are the top three Business Broking myths on the list today:
- I don’t need a Broker. It’s easy to sell my business myself
TRUE AND FALSE. Sure, it’s true – you don’t necessarily NEED a Business Broker to sell or buy a business. That’s if you have a thorough understanding of the legal requirements, the paperwork involved, due diligence specifications, non-disclosure agreements, negotiations and more. Importantly, do not discount the emotions that emerge especially when a Buyer disparages the business in order to lower the price. The right broker is experienced to handle this and protect you the seller from emotional reactions. Not 100% sure you’re top dog in all of those areas? Then that’s where this one becomes a MYTH.
Here at Core Business Brokers, we work on the sales of businesses every single day. By focusing our time and energy on this process for years on end (we’ll just say we’ve been at this game a very long time) we can both agree that we know the ins and outs of the industry and processes from top to tail. Business Brokers can guide you through the sale journey with ease, answer your questions, help you prepare (very important) and negotiate the best outcome. Alongside this, we can provide expert industry advice, guidance and assistance throughout the process. Our job is to provide you with a few options which best suit your needs.
- Business Brokers work for the Buyer only
FALSE. The majority of the time, Business Brokers are employed by the Seller, however – we can act on behalf of either party as Selling Agents or Buying Agents. Whichever party employ us are the ones that are responsible for any fees associated with our services. A business broker cannot act for both a buyer and a seller simultaneously.
- Business Brokers are extortionately expensive
NOT AT CORE BUSINESS BROKERS. The short answer to this one is true and false. Some Business Brokers are more expensive for a variety of reasons. Here at Core Business Brokers, our services are priced accurately and fairly for the work and professionalism involved. Nothing more, nothing less. A professional broker will be able to negotiate the best sale price for your business, which makes the commission payable to us almost irrelevant i.e. the added value of the sale price should more than cover the commission and we would have shielded you from a lot of the emotional impact when negotiating a sale. The most important part to consider is transparency. When you embark on your business journey here at Core Business Brokers, we outline upfront all fees associated with our services so clear expectations are set from the get-go. Whether you choose to use Core or another Broking service, we highly recommend you ask for a transparent account of the fee structure at the outset.
Have you heard a whisper about Business Broking and want to clear the air? Contact Core Business Brokers today, on (02) 9413 2977, or email Roy on [email protected] and we’ll alleviate your concerns and answer your questions.