Common Questions that Business Brokers in NYC Can Answer
Business owners can find it hard to wrap their heads around all the possible variables present in a business selling process. It’s part of what justifies the work of business brokers in NYC and beyond – to begin with.
A business broker (in NYC, of all places) should be readily available to answer many of the questions that an inquiring company owner may have, related to the arduous process of selling a business in such a regulated city. As well, he/she ought to be capable of offering recommendations on how to get the process going and informing of the different hurdles that can be found along the way.
Common Questions that Business Brokers in NYC Can Answer
Below we’ll list some of the most frequently asked questions that business owners may be asking:
1. HOW DO I CHOOSE THE CORRECT BUSINESS BROKER IN NYC?
The best possible way to determine whether a business broker is good for you is through interviews. By interviewing two or more individuals, you could intuitively discern whether the broker is reliable and has the necessary skills, knowledge, and connections to make the sale happen in the shortest period and with the best price tag.
As a side note, this is not a question that a specific business broker could answer, but we’ve included it here anyways.
2. How Long Does It Take to Close a Business Sale?
Business brokers get asked this quite a lot, and understandably so. Business owners would want the process to end as quickly as possible so that they may get on with their lives.
An honest business broker would tell the owner to not set expectations with regards to duration. Many factors could alter the time frame for a business sale, including the size of the company, its location, and the financing options available at a given time.
Valuations can already take a huge amount of time since all kinds of market metrics must be taken into account by business brokers. NYC is likewise a particularly difficult market to tackle due to the great number of competing businesses that operate therein.
In summary, the span of time it takes to sell a business cannot be feasibly ascertained.
3. How Does a Business Broker NYC Find A Buyer?
A business brokerage firm has the required tools to find buyers quite easily. They can choose from a network or shortlist of buyers, or through busy marketing via a myriad of business sale platforms. Brokers can also perform marketing listings on various top publications in the industry for increased exposure.
Additionally, business brokers in NYC are trained to sift through all prospective buyers and filter those with the most qualifications and possibilities of getting financed.
4. What Are The First Stages of A Business Sale?
Business brokers would first have to go through a business valuation and market analysis. For this purpose, a good business broker in NYC would ask for documentation and financial records to be able to delineate an accurate pricing range for the business. This would also grant a business owner the opportunity to invest in improving the business from an operational standpoint, as well as infrastructure, with the goal of settling for a higher price.
Read MoreHow You Can Increase the Value of Your Company
Selling a business is commonly compared to selling a house. It’s not exactly the same, while you may see some overlaps between the two actions.
In any case, even when selling a house, the aid of a real estate agent is key to maximizing revenue and ensuring a good deal with the most compliance. Likewise, the help of NYC business brokers should make your business sale more profitable and quicker than going alone.
Should I Sell My Business Without The Help of an NYC Business Broker?
Generally, it’s not advisable to proceed without the assistance of a business broker.
NYC business brokers are not only there to mediate between a seller and an investor. Top business brokers (NYC and elsewhere) escort the potential seller through all the stages of the selling process, from the moment it’s decided that the business should enter the market to the moment that the papers are drafted and signed.
A good representation is essential to a successful trade. A business agent is not just like your regular real estate broker that places a “for sale” sign on the establishment’s window. A competent brokerage firm has an organized database of solvent prospects with whom you may start negotiations.
If you feel you’re not financially able to afford the best business brokerage firm in town, you can still get the aid of small business brokers. NYC is packed with excellent brokerage firms or agents specialized in both big and small businesses alike so that you may obtain support even at a mom-and-pop level.
These are, in a nutshell, all the benefits of hiring a competent NYC business broker.
1. Pricing and Negotiation
Many business owners tend to fall under two extremes: Either they value their ventures way too high due to the emotional investment they made, or they settle for the lowest price to find liquidity.
Buyers, naturally, would love to buy at bargain prices, though, for the most part, they would be wary of businesses that could reasonably be considered extremely undervalued.
Skillful NYC business brokers know how to settle for the right valuation using various technical metrics that can be verifiable to ensure a buyer’s trust. For this purpose, the broker will require that you provide financial statements and other relevant documentation.
They also excel in the art of negotiation. It bears repeating that, on many occasions, business owners negotiate their terms based on raw emotion. The help of a qualified business broker is crucial in order to inject some semblance of objectivity and reason into the negotiating table while trying to maximize your gains within the parameters of current market conditions.
Brokers also ought to have enough experience to manage all the possible setbacks that may arise with closing attorneys and escrow companies during the final phase of the negotiation, as the parties sign the papers.
2. Profiling and Marketing
A good NYC business broker knows how to spot a good investor better than a regular business owner, owing to the experience that the former has in these kinds of operations.
One of the hurdles of selling a business is finding time to keep the business going while doing all the errands related to the sale. With a diligent business broker, the owner doesn’t have to waste precious time dealing with unsuitable buyers.
Moreover, NYC business brokers are knowledgeable about the marketing tools needed to find a qualified buyer and the strategies that must be applied in the business market to secure a great deal in the shortest timeframe. They will additionally assist buyers in preparing their respective letters of intent and offers.
3. Confidentiality
Apart from optimal buyer profiling, a thoroughly trained business broker is capable of drafting a plethora of confidentiality agreement models to suit a given prospective buyer. They know their way around this so that you remain under the radar. Only those with a tangible possibility of buying your business would know what you’re selling.
In many cases, brokers will demand a financial statement from the buyers along with their signature on the agreement paper as a way to guarantee that they will abide by it.
4. Coordination
A business broker may be able to take the helm and coordinate with the rest of the support team (consisting of attorneys, lenders, accountants, etc.) as well as outside advisors, all of this in the hopes of making the process much smoother and taking some of the burden off your shoulders.
Read MoreThree Steps to Prepare a Sale
You feel that it’s time to call it quits and sell your Long Island company, either for retirement purposes or to pursue other business goals.
The first thing that comes to mind is to contact a trusty Long Island business broker to begin the process right away. Still, in the meantime, there are other actions that you might want to perform in order to facilitate the sale.
Three Steps to Prepare a Sale
Let’s uncover the first three steps you need to follow in order to have a better selling position:
1. INCREASE PROFITS
The best moment to sell a business is when it is at its most profitable stage. This is what you’ll hear often from every competent business broker.
Long Island is a particularly difficult market to tackle, which is why you ought to try a bit harder to position your company so that it appears on the top of the list in terms of sales.
A thriving business is the dream of every avid investor. A business with poor or stagnant sales will not arouse the interest of anyone, much less a qualified buyer, which is why you have to find methods to stimulate sales before taking your business to the marketplace. A good Long Island business broker would probably advise you to do the following:
* Offer bonuses and incentives to employees and usual customers for bringing new clients.
* Improve the sales department by adding more personnel.
* Register every sale, including those that are paid in cash and not easily traceable.
* Boost the marketing campaign for further brand recognition.
2. Try to Sell off Inventory
Take the necessary actions to empty your shelves as much as possible before putting your business on sale. No buyer wants to deal with old inventory that might not be able to be sold after the deal closes. The best option is to turn that remaining stock into cash, even if that means lowering the price a bit.
The same goes with old equipment that is no longer being employed in the business’ daily operations.
3. Get Less Involved
It’s often said that you should not detach from your business before selling it (and even a while after). This is still applicable, but there are nuances you may want to consider.
A business managed by a single individual is at a rough spot when that single person ceases to operate or leaves. Buyers will not find that very convenient. In that regard, you should consider relying more on a liable and competent management team that can keep things running smoothly during the transaction.
You would still be capable of supervising the whole operation without having to get too personally involved.
Get Help From A Qualified Long Island Business Broker
A good Long Island business broker might not be wholly equipped to boost your sales or manage your company (or at least not directly). Nevertheless, you should be able to count on his/her advice and assistance throughout the whole ordeal of selling your Long Island venture, even at the very first stages of the process.
Read MoreBuy a Business (NYC) in 2022
Are you planning to buy a business NYC in 2022? Then don’t hesitate to contact the best New York City business agents. Getting professional help will prove to be extremely useful in order to streamline your purchase.
Amidst the economic turmoil that was caused by the health crisis experienced during the past 2 years, the business selling market has been subjected to severe fluctuations and changes along the way, both positive and negative. Nonetheless, it’s often said that, in times of crisis, new investment opportunities spawn.
WHAT ARE THE CHALLENGES YOU MIGHT FACE IF YOU DECIDE TO SELL OR BUY BUSINESS NYC IN 2022?
It’s important to be aware of what you might have to face whenever you decide to sell or buy a business. NYC is touted as the financial capital of the free world but, at the same time, it’s filled with challenges, both with regards to competition as well as regulation.
These challenges will vary according to which side of the business selling market we decide to analyze.
Challenges for Buyers
If you lie on the buyer’s side, it’s essential that you familiarize yourself with the industry you plan to get yourself into, as well as the budget needed to choose your ideal business within that industry.
To attain this goal, the aid of skillful New York business brokers could turn out to be very convenient, for they may hand useful tips that ought to reinforce your decision or, rather, make you reconsider where you want to put your money. Business firms can also get you in contact with trustworthy sellers thanks to their exclusive network of clients and connections.
Challenges for Sellers
Sellers don’t have it any easier. You would need to be capable of weeding out any “window shoppers” in the course of the selling process, This time-consuming chore will not be doable when you simultaneously have a company to run.
An experienced business agent has more time to sift through all the list of people who’ve shown moderate interest in the sale and to pick the ones with the best qualifications for participation in the next phase.
These agencies also have the advantage of possessing a database comprised of qualified investors who could match your specific profile and are eager to buy a business NYC clients especially.
Privacy is another concern, especially since you wouldn’t want information regarding the sale to get to the ears of the competition and the employees. A diligent business agent is trained to get the process going without much disclosure, meanwhile permitting buyers with an ounce of liability to learn more about the company.
Challenges during the Sale
In the midst of a business sale, a “natural” tension is fostered between the interests of both the buyer and the seller. They both hinge primarily upon financial concerns.
On the one hand, the buyer would like to seal the deal at a bargain price, while, on the other hand, the seller wishes to have the best return on investments.
In light of these two conflicting interests, each party should benefit from the assistance of a professional broker. That way, both of them benefit from the deal by finding a middle ground, not only on the negotiating table but also when setting expectations at the very beginning of the procedure.
Read MoreHow To Find A Good Buyer For Your Business
People looking to buy a business in New York City would want to be informed about the best deals from the most trustworthy sellers. Nevertheless, sellers will also want to look for the most reliable investors in a short span of time. Stick around to find out how to proceed from a seller’s point of view.
Best Methods For Finding Investors Intending to Buy Business New York City
Unless you are the owner of a big company, the best way to get the needed exposure for your business sale is by doing some advertising work.
Insofar as people who are on the lookout to buy a business in New York City would turn to certain mechanisms for finding a good investment option, a seller also ought to be aware of what these mechanisms usually are and tackle them. This is ascertained through a process called “market analysis”.
Nevertheless, as of the time of writing, these are the most common strategies utilized:
1. INTERNET MARKETING
Gone are the days when you had to go to a physical building or call the local newspaper to buy space in its classified section. The internet has roughly overridden this tedious process and has streamlined advertising so that, in many instances, you don’t even have to pay.
There is a great array of internet sale sites, but many of them offer membership plans. If you’re not financially able to acquire membership on every one of those sites, you might try at least the most popular ones such as bizbuysell.com [https://www.bizbuysell.com/] or axial.net [/axial.net]
2. Email Marketing
This is mostly applicable to business brokers since they’ve been already establishing networks and connections with other buyers, brokers, venture capitalists, and private equity firms.
Sometimes, the optimal way to target investors looking to buy a business in New York City is through the broker’s email address book. A brokerage firm very likely has a more extensive list of people who already authorized them to notify whenever a new business is up for grabs, so the process of looking for buyers becomes a bit more immediate.
You may also take advantage of the email lists provided by sites such as bizbuysell.com, albeit the relationship is not as personal.
3. “INSIDER” OR “STRATEGIC ACQUIRER” CAMPAIGN
Through this method, we would target business owners in the same sector who may wish to merge our company with theirs, expand into your local market, or increase their business group.
This type of marketing aims at keeping our dealings away from the public eye while also directing our efforts towards people with a proven track record, basically making the screening process a lot easier.
However, it demands a bit more effort on the part of the marketers, since they would need to get a hold of email addresses, telephone numbers, and/or LinkedIn connections, as well as to try to get in contact with them numerous times until they get an answer.
4. Print Marketing
The printing press is not out of the woods, yet! Though this is probably the least efficient method nowadays, owing to the widespread use of digital means. Nevertheless, publishing our campaign in a magazine catered to a specific industry may help arouse the interest of possible candidates potentially looking to buy a business in New York City that matches your proposal.
TO CONCLUDE
Finding a suitable buyer is just one milestone in the long process of selling a business. New York business brokers can make the process a lot shorter by assisting you with their expertise and extensive knowledge in the field of business sales.
Read MoreWhat Do Business Brokers Do?
If you’re in Long Island and are looking to sell or buy a business, a good Long Island business brokerage firm can help boost the chances of landing good deals.
But the work of a business broker is not reduced to finding good buyers and sellers. They should be endowed with sufficient qualifications and expertise in the financial, technical, and legal aspects of business buying/selling to assist you through most of the burdens involved in every stage of the process.
WHAT IS BUSINESS BROKERAGE LONG ISLAND?
Business brokerage consists of the assistance provided by individuals or firms in all the operations related to buying or selling a business. This assistance comprises the following tasks:
1. Screening
Business brokers are instructed to assess the market and find the businesses that match the criteria and parameters laid out by an investor/buyer. A Long Island business brokerage firm should be more than equipped to show potential buyers the best investment opportunities for their needs.
In terms of selling. the business broker ought to be qualified for analyzing the financial situation of all interested buyers and to aid in choosing, from a pool of potential investors, the best prospects in terms of credit score, liquidity, capital, and professional experience.
2. VALUING
Surely you know how much your business is worth, but probably by heart! This is, frankly speaking, not enough to convince investors. You’ll need to show spreadsheets and measurable data that can be easily verifiable. A business broker walks sellers through the arduous task of doing an accurate business valuation to make sure that they’re not overpricing or under pricing their ventures.
3. FUNDING
In the “small” world of business brokerage, Long Island agents and firms would most probably know and associate themselves with the m0st trusted banks in the area, which should generate confidence at the moment of choosing the best bank in which to apply for a loan. The broker is also theoretically knowledgeable about the most efficient ways to get financing approved.
4. COMPLYING
Long Island business brokerage agencies should be thoroughly trained and updated with regards to the regulatory framework for business purchasing and selling. You won’t have to deal with the cumbersome task of finding out how to do all the paperwork. The broker should streamline the process so that you won’t skip any form or fee.
5. MARKETING
Posting an ad for your business is really not that hard, but you won’t be capable of getting noticed unless you have an adequate understanding of how positioning and marketing strategies work. In that sense, a competent Long Island business brokerage agent is versed in the most effective tactics aimed at driving traffic to your ad. He/she can also help you find the best business marketplaces to ensure that your business gets the necessary exposure to spark a negotiation.
6. NEGOTIATING
If there is anything that business brokers excel at is in the art of negotiation. We, as investors or sellers, can be very emotional about how we handle a deal, which is why it’s crucial to find a third party that can keep things “professional” and right any possible wrongs in the negotiating table so that any tensions in the relationship between buyer and seller can be alleviated before they escalate.
Conclusion
Hopefully, we’ve been able to support the reader in ascertaining the basic functions performed by a business broker and how a good Long Island business brokerage professional or firm can smooth out any rough edges in all the phases of purchasing or selling a company.
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