How A Business Broker Can Save A Deal
A business broker is not only responsible for bringing a buyer and seller of a business together
. A skilled business broker is also the intermediary that can help save a business sale if required.Selling a business is a process that is unlike the sale of a building or land. A business is typically sold as a going concern. As such, there are many points throughout the process where a deal can fall apart. A buyer may see something in the financial due diligence that causes some concern, there may be a miscommunication, a financing issue or perhaps a simple case of cold feet. A business broker should be able to address each concern with a sense of professionalism.
Sometimes legitimate reasons come up where a buyer needs to walk away from the sale and the only logical course of action is that the transactions not go though. Other times, the reasons for a deal unraveling are simply unfounded and are usually based on miscommunication. This is when a business broker can add significant value to the business sale and help the buyer and seller come together. This article explores some of the ways that a professional business broker can assist in saving a deal.
Communication between the buyer and seller
The number one reason why a business sale does not complete is that the communication between the two parties falls apart. Sometimes miscommunication is the reason and sometimes it may be due to a perceived slight. Whatever the reason, a business brokers job is to ensure that the right messages flow between the vendor and the purchaser.
Emotions on the part of the business seller or purchaser
Selling a small business is a highly emotional process. A business sale can take a long period of time and tensions may get high so a good business broker must know when to let clients cool off. A business broker should also have a thick skin so that he or she can be used as a sounding board. Sometimes it is better for the broker to take the verbal discontent of the client so that at least they are civil to one another in person. This is important.
Reality check
Some business owners simply have an unrealistic version of what their business could or should sell for. A business broker is doing their client a service when they keep them grounded on what the market will bear for their specific business for sale. A business owner who is unrealistic about selling price or other deal terms is not done a service by their business broker who doesnt give them a frank reality check.
Keep a deal moving
Long delays in a business sale are never a good idea. Delays breed doubt and can cause emotions to rise. A skilled business intermediary will help move the deal along and not allow the long delays to occur that can make a deal go stale.
A business brokerage professional can save deals and help transactions come to a successful close. Selling businesses is really more than just finding a buyer. It really involves nurturing a business sale transaction (which has been compared to a marathon) and ensuring that all parties act rashly and with the best information possible. Doing this is a service that a business broker can perform for their clients.
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