Selling a business can be an exciting prospect, especially if a brand new chapter is waiting just around the corner. Going through the process all by yourself without knowing the nuances of the process, though, can be a daunting task. You could easily become swamped by all of the paperwork, agreements, evaluations, and due diligence involved in selling your business.
Accountants and attorneys can assist you with some of those steps, but there are some requirements you will still have to facilitate yourself. Completing all of the tasks in the run-up to selling your business can certainly be anxiety-inducing. But, if you have a business advisor on your side, who has the experience, tools, and foresight you need, it can be a much smoother process. A business advisor can also anticipate problems before they arise and ultimately set you up for a successful sale of your business.
4 Benefits of Hiring A Business Advisor
A business advisor assists sellers in numerous ways. They are great for sharing ideas on how to best present your business to be sold, keeping all of your ducks in a row in terms of organization, and will motivate you to stay on track.
1. Due Diligence
If you’re just starting out the process of selling your business, a business advisor will help you understand what you are getting into. A good business advisor will also have extensive experience with doing market research and will inform you of how much you can realistically sell your business for.
A business advisor will have a long list of potential buyers in your area that you can start contacting right away. This will be a fantastic way to see how much your business is worth through a buyer’s eyes. With a business advisor at your side, you will be able to cut through the uncertainty and get potential buyers looking at your business sooner.
Getting the word out that your business is for sale might sound straightforward, but you would be surprised by how tough it is. A good business advisor would help you attract serious potential buyers by marketing your business the right way.
A business advisor knows how to make your business look appealing. This could mean implementing a flyer that highlights the best features of your business or how to present it when potential buyers stop by. Unless you have the know-how yourself, trusting a business advisor with the task of getting the word out will give you better chances at selling and quickly.
3. Buyer Screening And Negotiating
How do you know a buyer is a serious one? A business advisor would have the experience, knowledge, and resources to know if you have someone you can invest time in or just someone who is wasting your time. A business advisor will turn away browsers and prospective buyers whose aim is to low-ball you. That way you will only be put in contact with well-qualified and well-intended people who want to make your business theirs.
Once an interested party has made an offer, your business advisor will crunch the numbers, revisit expectations, and be able to counter if the proposed price tag doesn’t stack up. Thanks to the research your business advisor put in at the beginning of the process they will know how to leverage a better deal. They can base this on the potential buyer’s finances, readiness to buy, and other factors.
Once the deal is structured in a way that suits you, the buyer will probably need to get financing for the purchase. A business advisor helps the process along by submitting the necessary documents in a timely fashion so the lending bank can process the loan. They can also handle paperwork regarding the lease, land transfer, equipment purchases, and other important loose ends.
The business advisor will then prepare your business for the sale. Some conditions might have been laid out in the pre-agreement documents you and the buyer both signed. All of the necessary documents will be prepared in a dossier to be handed over if that hasn’t already occurred. Your business advisor will oversee the transfer of funds and be available to assist with any other matters related to the sale.
Finding The Right Business Advisor
It’s vital to find the right business advisor that meets your needs. It may be necessary to interview several candidates to find a good fit. Two good questions to ask when choosing the correct advisor are: Are they certified? Do they belong to any advising associations?
You should also check the advisor’s rating on Google, Yelp and other websites. A positive presence on the web is a good sign the advisor is well-regarded.
Also, ask what they charge. A good business advisor should charge what they believe they are worth but do your research to make sure you are not getting overcharged. Most advisors charge a commission based on the success of the sale. Be sure to ask about other fees they might charge.