Do you want to sell your business? Hiring a business broker in Singapore can make selling your business quick.
Some business owners think that it’s not necessary to hire a broker when selling their business. However, without the right knowledge on valuation, market, and prospects, selling could take time.
Check the importance of hiring a business broker:
- They know the valuation of your business.
Not all business owners know how much their business costs because there are many factors to consider. They may set a very high price that will make their business look stale on the market. On the other hand, selling it at a very low price can lead to a loss.
Business brokers are the only experts in determining the value of your business. They know how much your business is worth.
Factors like location, size, contract, customer concentration, accounts receivable, and length in the industry can affect the monetary value of your business. If you are not a broker, you’ll likely make mistakes in determining its value.
Knowing the real price of your business can help you in your next step. A broker can determine its real value before they offer it on the market.
- They make a formal presentation.
Take a look at the photo taken by a professional and an amateur photographer. There is a big difference in how they captured the photo. There’s no doubt that a professional photographer has a better presentation of a picture.
It’s the same when selling a business. A professional business broker knows how to present your business in front of prospective buyers.
Even if there are loopholes and negative parts, they can turn it into positive ones. In short, they can present it beautifully to qualified clients and give a boost to its value.
- They make excellent negotiations.
As expert business brokers, they are trained in negotiation. They know the ins and outs of this business.
Brokers are equipped with knowledge and expertise in negotiating with both parties (seller and buyer). Since they have experience in this job, they know how to direct the conversation in the right direction.
They can carry out the deal smoothly and avoid misunderstandings and issues. Most importantly, they make perfect negotiations that are most likely to end in close deals.
- They know how to market your business.
It’s their job to sell your business and earn by the commission, so they will do anything to close the sales quickly. Part of the job is to market your business using the right strategy.
They know what techniques to use to promote your business in the right buyers. There are internet ads, social media, newspapers, and other marketing techniques.
Not only they know how to present your business in the right manner. They also know how to use the proper means to spread the information quickly.
Aside from that, they know how to target the real buyers. They know where to get qualified leads. They don’t waste time in the matchmaking process between the sellers and buyers.
They have access to interested buyers in the local market. They can match sellers to the right buyers who are interested in acquiring new business.
Lastly, they have access to the business database. They can expose your business to a wide market of buyers who are more likely to buy it.
- They maintain confidentiality.
Part of the deal between a broker and a business owner is confidentiality. Business brokers can keep the entire process of selling confidential. They don’t expose sensitive information that may bring some problems along the way.
Most business owners don’t want their people, suppliers, or customers to know that they are selling their business until the right time. A broker can assure that this remains confidential.
- Less stress for sellers.
Instead of doing all the work to sell your business, a broker can take care of them for you. It could mean less stress for you because you no longer have to worry about paperwork including NDA (non-disclosure agreement) and CIM (confidential information memorandum).
Brokers know how to draft and produce these papers because it’s part of their job. You can concentrate on other parts of your business while they are in charge of the deals and agreements.
Also, closing a deal takes time especially if the seller has lots of obligations in the business. The presence of a broker can help speed up the work because they can take much of the selling work for you.
A business broker can help a seller as well as the buyer. They play a huge role in a successful business deal. If you are a seller, would you hire a business broker?