According to the Queensland Government, one of the main advantages of hiring business brokers is their strong negotiation skills. However, this is just one of the many invaluable communication skills offered by business brokers. From marketing your company to negotiating the deal, these professionals know how to navigate a successful sale.
Here are five essential ways a business broker can help you communicate your way through an effective business sale:
1. Compartmentalising skills
When selling a business, you need to advertise and market it to reach potential buyers. However, in many cases, you may want to keep the fact that you are selling the business quiet on an internal level. Unfortunately, if your employees hear you are selling, they may want to leave.
Balancing these two issues at the same time can be challenging if you have never sold a business before. Luckily, a business broker knows how to navigate these issues simultaneously. Additionally, because the broker is handling affairs, your employees aren't likely to hear about the sale as they would if you were handling things inside the office.
Brokers also know where to most effectively market your company. They know which channels work the best, and they may even have contacts who are looking for your type of company.
2. Knowledge of business sales vocabulary and concepts
In addition to knowing where to talk about your business, an experienced business broker knows how to talk about your business. Obviously, through years in your industry, you know the advanced lexicon and vocabulary surrounding your business and its products. However, unless you have sold a business before, you may not know how to talk about selling a business.
Whether they are discussing the price of your company based on asset-based valuation or the earnings multiplier method, business brokers know business sales terminology inside and out. That makes it possible for them to field questions and concerns from interested buyers in a knowledgeable and useful way.
3. Time to focus on communicating about the sale
Business brokers know how to discuss business sales, but they also have the time to do so. If you are wrapped up in the day to day running of your company, you may not have time to field phone calls from potential buyers. If you don't have time to talk to buyers, they may get frustrated and lose interest.
If you have a broker handling the sale, they can field calls, answer questions, follow up with potential buyers and take care of all of those communication concerns.
4. Understanding of when to hold back and when to release info
Talking to prospective buyers isn't just a matter of having time and knowing the right terminology. A successful sales chat sometimes involves knowing when to stay quiet and when to disclose information. If you release too much information, you may scare away potential buyers. In contrast, in some cases, you may be legally obligated to disclose certain information. Due to their vast experience selling companies, business brokers know when to talk and when to stay quiet. Ultimately, that can help you garner a great price for your company.
5. Communication without personal bias
Selling a business can be an emotional experience, especially if you have spent your life building up your business. Unfortunately, emotions can cloud judgement and get in the way of a successful sale. For example, a business owner may sell to someone they like rather than to a competitor, and sadly, that choice can lose the business owner money.
A business broker, however, does not have this issue. A broker can look at the matter objectively, and his or her lack of personal bias can be essential in terms of getting the best price. However, if you want the broker to avoid selling to your competitors, you can add that caveat to your agreement with him or her. Keep in mind that you get the communication advantages of a broker, but you can still be involved in the process.