Why You Shouldn’t Sell Your Business Without a Broker
Selling a business is not an easy endeavor in the slightest. Business owners who try to avoid the help of professional business brokers in New York City will be essentially handicapped to deal with this cumbersome process.
WHY YOU SHOULDN’T SELL YOUR BUSINESS WITHOUT A BUSINESS BROKER NEW YORK CITY
Below is a list of mistakes that business owners incur when trying to sell their company without the assistance of a business broker New York City:
1. INCORRECT PRICING
Even small business owners could struggle to define a fair value for their business. There will be a natural tendency to over evaluate o underestimate the business because of miscalculations and emotional factors.
When these miscalculations happen, there is a good chance that you’ll scare off prospective buyers, either because they find it suspicious that the business is sold at such a low price, or they feel the seller is asking for too much.
2. INCORRECT MARKETING
Most business owners are not very savvy in the art of selling a business. Unless they find relatives or friends interested in buying, they will ultimately be left with little to no candidates. This is because they lack the tools and connections necessary to draw the attention of investors.
Business owners will likewise tend to get emotional when showing their company. This may not be a very attractive approach to most buyers because, in most instances, they will come to the conclusion that something awry drove the owner to sell and they’d probably want to steer clear from proceeding with the deal.
You’d want a relatively emotionally-neutral third party who is able to showcase the perks and features of your venture without making it seem as if he/she simply wants to get rid of a troubled business (even if that is, indeed, the case).
3. Lack of Confidentiality
When you decide to deal with buyers yourself, you’re sometimes bound to disclose personal data.
Business owners are particularly susceptible to revealing too many details of their personal life and their company to people who might not be very serious about the sale and who may, in turn, reveal them to others who “have a dog in this fight”.
These are the hazards associated with doing a sale without the aid of competent business brokers in New York City. A good business broker is trained to deal with the sale in the most confidential way possible (at times, even your name is not mentioned at all during screening.)
4. Problems Gathering Documentation
Buyers will demand a copious amount of documentation in order to assess the company’s financial status, especially in the context of “due diligence”. Things can get quite tough at this stage, and gathering all the documentation could seem next to impossible.
Among other things, you’d have to make a list of all your current assets, fixed assets, liabilities, debts, and contracts, as well as collect a plethora of financial documents. These tasks can be effectively streamlined thanks to the help of a business broker New York City who understands all the nuances and caveats present in the process of selling a business that corresponds to your industry in the New York area.