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DIVEST MERGE ACQUIRE
Focus on business
Put a broker on your team
NGAGING a business broker can
be seen as an unnecessary expense for someone trying to sell
their business and maximise the
proceeds from that sale. Why over-complicate your to-do list by adding another thing
to do? In reality, a business broker is so
much more than an extra cost.
Studies show that engaging with a broker
increases your chances of selling the
business more quickly, at a higher asking
price and to a better qualified buyer.
There are many reasons to hire a broker,
but here is my list of what I consider to be
the top five:
Focus and expertise
The experience and knowledge of a
business broker are invaluable. More
importantly, expert brokers only focus
on selling businesses. They avoid the
temptation to sell real estate to boost their
cash flow, thereby getting distracted from
“give” your business away. Buyers are very
motivated to make low offers and almost
always do. A broker can see through lowball offers and save you time that would
otherwise be taken away from operating
your business dealing with bargain hunters.
selling your business. Selling businesses
is what they do full-time. They can give
your sale the time and dedication necessary
to achieve higher prices in the quickest
possible time. Allowing you to focus on
what you do full-time – running a business
Professional negotiation skills
Unless vendors are experienced in
negotiating complex transactions, they are
best to leave it to a professional who won’t
Your business competes with all other
businesses on the market at that time.
Why would someone take a look at your
business? But be aware, buying businesses
is a Return on Investment decision not a
Understanding buyer psychology is a
key attribute of a successful broker who
knows how to advertise to attract buyers.
Brokers have the experience to present your
business to the right buyers so it stands out
in the ‘sea-of-sameness’.
Experienced business brokers have a
full network of potential buyers organised
by industry and level of financial capacity.
This simplifies your selling process, as you
will need less marketing to find interested
buyers for your business.
This also encourages more offers
which can be an advantage to drive
bids higher. Brokers also have access to
detailed market data of what businesses
are in demand and which ones are out of
Commitment to your success
Because a professional broker only
sells businesses, they are vested in
getting the vendor a result.
The broker gets paid when the vendor
gets paid, and the higher the price the buyer
gets the higher the reward for the broker.
An interesting industry statistic is that 50
per cent of signed contracts fail to complete
in business sales. A professional broker will
stay in the process right to settlement to
ensure a successful outcome.
Business Sales & Acquisitions Tasmania
Divest Merge Acquire is a market leader delivering exceptional results
in the sale and acquisition of medium and large Australian businesses.
M&A Transaction Advisory firm
Mergers and Acquisitions to medium and large enterprises
17 offices and member firms in Australia
Advises on clients' businesses with EVs $1M - $100M
AFSL and Business Sales licences
Contact Us for FREE
0437 733 811
0448 887 398
divestmergeacquire.com | 1800 700 111
TASMANIAN BUSINESS REPORTER, November 2020 11