Selling or buying a business is a lot easier with the right broker. If you’re selling, business brokers can help you attract the most qualified buyers, maximize your chances of a completed sale, and recoup full value from your investment. If you’re buying, the right broker can help you find the ideal business for your needs and ensure that you’re paying fair value for your new company.
But this all depends on finding the right broker. And in the vast majority of cases, that means looking for local business brokers — brokers who are based in the same area as the business that’s being bought or sold.
With few exceptions, business sales are inherently local transactions. As illustrated below, it pays to have the experience and expertise of a local broker.
Why Business Brokers Need Local Experience & Expertise
Familiarity with Local Markets
Whether you’re selling or buying a company, it helps to know the local market for business sales. This way, you’ll have a strong sense of going rates for different types of local businesses. You’ll know how long it typically takes to sell a business in your area. And you’ll know where to look for off-market sellers and buyers within the community.
No one has a strong understanding of these factors than qualified local business brokers. An experienced local broker will leverage this expertise to help sellers value and market their businesses accordingly, and to help buyers find the best local business opportunities.
Understanding Regional Appeal
Today, many business buyers aren’t simply looking for a new business to buy. They’re looking for a new community and lifestyle. But as a local business owner, you might not realize what makes your area so appealing to out-of-town and out-of-state buyers.
Local business brokers, on the other hand, know exactly what makes their area appealing to buyers. This includes unique and favorable aspects of the local business climate. And it includes things that make your area a great place to live — particularly for small business owners. This makes it easier for brokers to target the right kinds of buyers and to include regional selling points in marketing materials.
Knowledge of Local Regulations
When you’re selling or buying a business, attention to detail makes all the difference. An ‘i’ left un-dotted or a ‘t’ left un-crossed can lead to major headaches for both parties.
A qualified business broker will understand the importance of these details and will use a systematic process to ensure that nothing gets overlooked. But if a broker isn’t familiar with relevant state, county, or municipal regulations, their process might be insufficient.
Local business brokers work exclusively (or almost exclusively) within a defined area, so they can help you navigate any state, county, or municipal fine print governing the sale or purchase of a business.
Referrals to Area Specialists
Hiring a business broker is a smart move whether you’re selling or buying a business. But a broker isn’t the only specialist you’ll want to hire. At a minimum, you’ll also need a financial advisor and a lawyer or paralegal. And there’s a good chance you’ll need additional specialists, like a business appraiser or valuator.
Hiring the right broker can make finding these specialists much easier. The best local business brokers boast strong referral networks for exactly this reason. When you need a local expert, they’ll know exactly where to point you.
Assistance with Local Financing
Occasionally, a business sale is nothing more than a simple cash transaction. But more often than not, business buyers require third-party financing. And that financing usually needs to come from a local lender.
Experienced business brokers can help buyers acquire financing by referring them to local lenders. In some cases, this occurs through traditional financing. In others, it involves an SBA loan.
Assistance with local financing clearly benefits business buyers. But it also makes life easier for business sellers. By helping buyers acquire financing, local business brokers increase the likelihood of selling your business and can speed up the timeline of your sale.
Connect with qualified local business brokers in your area by calling Murphy Business today at (888) 561-3243!