Selling Your Business With a Professional Business Broker
There are many reasons why it is in your best interests to sell your business through a professional rather than privately.
Both running a business and selling a business take a lot of time and effort. Given the commitment that each of these activities requires, it is nearly impossible to do both at the same time and give them both the necessary attention. For this reason, business owners who attempt to sell their business on their own often neglect one of these responsibilities. Neglecting to properly run your business will decrease its resale value, and neglecting the sales process will lead to costly mistakes that draw out the sales process. Either way, most business owners simply do not have the time to both run their business and sell it simultaneously.
The ultimate goal of selling your business is to sell it for the highest price possible. However, businesses that are sold by their owner directly almost always sell for below market value . This is because owners do not usually have access to the same high-quality buyers that professional brokers do. Business owners who have valued their own company also tend to be less objective about its value, leading to unrealistic expectations and the company is priced incorrectly. To sell your company for the highest possible price, you are always better off working with a professional business broker.
Selling your business could be stressful. This stress is made far worse when you sell your business on your own. This is because selling a business is unlike selling anything else. You must be discreet, professional and pay attention to all of the details. Because the average business owner has never been through the process of selling a business before, business sales can be intimidating. This intimidation is made worse by the high stakes involved and the average business owner’s lack of experience with the process. Under the guidance of our professional business brokers at the Riverside, California, office of Morgan & Westfield, this stress can be alleviated. We will teach you about the process so that you know what to expect, provide constant guidance and be a source of support that can help you overcome any obstacles that may arise.
One of the most important considerations in any business sale is confidentiality. It is imperative that your business is sold as discreetly as possible. Breaches in confidentiality and information leaks can have a devastating impact on your company’s value. Unfortunately, many sellers do not understand the importance of this discretion, or they are unaware of what to do to maintain this level of confidentiality. This inexperience often leads to information leaks that negatively impact the sale. At Morgan & Westfield, we will take steps to ensure that your information is always secure. When our business brokers advertise the sale of your business, we utilize our confidential marketing system. This system involves advertising the sale using generic information and prompting buyers to contact Morgan & Westfield to receive more specific information. This marketing strategy limits the number of people with knowledge of the sale and requires these individuals to sign confidentiality agreements. Our business brokers will also advise you on steps that you can take to protect your company’s confidentiality, including:
- Telling no one about the impending sale until it has been closed (this includes employees, customers, suppliers, competitors and any other stakeholders).
- Requiring anyone with knowledge of the sale to sign a non-disclosure agreement.
- Continuing to operate as you normally would in order to prevent suspicion.
- Communicate only with qualified buyers that our business brokers have screened and have signed non-disclosure agreements.
Because of the average business owner’s lack of experience in selling a business, innocent mistakes are common. You may forget to complete paperwork, inadvertently misrepresent something, inaccurately price your business or make an emotional decision during the negotiation process. All of these mistakes may be honest and understandable, but they can also be costly. In some cases, these mistakes can even prevent a sale from happening or cause a completed sales contract to be nullified. Under our professional guidance, these mistakes can be prevented, thus making a successful sale more likely.
Business Brokers of Riverside, California, office of Morgan & Westfield
Our business brokers at the Riverside, California, office of Morgan & Westfield have extensive knowledge of the Southern California business market. We work with business owners in this region on a daily basis , and each year we facilitate hundreds of sales in this region. Through operating exclusively in the Southern California area, our business brokers have gained a superior understanding of the dynamics of the marketplace.
We understand the challenges of selling a business here and how to best overcome them. We also understand the incredible asset of being located in Southern California and how to communicate the advantage of this location to potential buyers. Our business brokers understand these things because of our deep connection to our local communities. Local Southern California communities that we are particularly connected to include:
Riverside, Corona, El Cerrito, Woodcrest, Mead Valley, Lakeview, Nuevo, Terra Cotta, Hemet, San Jacinto, Menifee, Winchester, Murrieta, Banning, Beaumont, Silverado, Fullerton, Anaheim, Brea, Chino, Pomona, Ontario, Fontana, Bloomington, Calimesa, Yucaipa, Redlands, San Bernardino, Rialto, Rancho Cucamonga, Jurupa Valley and Moreno Valley.
Our business brokers have many local connections throughout these communities as well as many of the neighboring communities that make up this region of Southern California. These include: attorneys, accountants, bankers, tax experts and even investors that may represent potential buyers. These resources can prove invaluable as you go through the process of selling your business. They can assist our business brokers in advising you, aid you in overcoming any obstacles that you may face and help our business brokers to expedite the sales process for you. These connections also help our business brokers to keep their finger on the pulse of the dynamics of this local marketplace and adjust the way that we serve you accordingly. The advantages of working with a team of business brokers that are so familiar with your local marketplace are innumerable. If you are a business owner in the Southern California area and you are considering selling your business, contact the Riverside, California, office of Morgan & Westfield to learn more about how our business brokers can help you sell your business.