When you’re selling a business, finding the right business broker will save a lot of time and stress. More importantly, it will improve the actual chances of selling your business, and it can help increase the value of your sale. So, you want to make sure that your broker understands what it takes to sell your business. For most small business owners, that means choosing a small business broker.
What constitutes a small business? The Small Business Administration is the best place to reference for details, but typically a company with less than 250 employees is considered a small business. While the definition does vary by industry, the Small Business & Entrepreneurship Council found that of all US firms, 99.7% or 28 million are considered small businesses.
Small business brokers are brokers who specialize in selling smaller. These brokers tend to work directly with independent business owners, rather than working as part of a larger, multi-touchpoint team. They also tend to be locally based, focusing on sales within a particular market.
This makes them uniquely valuable to small business owners in a number of ways, both before and during the business sales process.
Why Sell with a Small Business Broker?
If you’re selling a small business, it simply makes sense to hire a broker who specializes in small business sales.
First and foremost, they’ll understand how to sell a small business better than a broker who’s focused on mid-size companies. The best small business brokers have chosen to focus on Main Street business sales because they’re passionate about working with Main Street business owners.
As a result, they’ve built a unique skill set for valuating and selling small businesses. At the same time, they understand the small business market better than most other brokers. They also possess detailed understanding of how different small businesses operate, and how different business structures impact the value of a business listing.
Working with a small business broker also comes with additional benefits. For example…
With small business brokers, one of the biggest advantages is the high-touch nature of their client relationships.
With larger brokerage firms, you’re typically looking at one of two options. Some of these firms specifically target larger businesses. They might accept small business listings, but they don’t invest a lot of time in smaller clients. Then you have larger firms that target smaller businesses, but who churn out listings via an assembly-line-style process.
In neither case will you build the kind of relationship you want with a business broker.
Instead, you want a broker who works specifically with small business owners and who treats each business and listing as a unique project. This kind of broker will take the time to understand the ins and outs of your business, what’s contributing to or detracting from its value, and how to make it saleable.
The vast majority of business brokers are locally based, serving sellers within a specific metro area or regional market. Over time, they develop relationships with other local providers of professional services, including valuation specialists, attorneys and paralegals, real estate brokers, and loan officers.
These relationships can prove valuable to small business owners preparing to sell a business. Most sellers have never gone through the process of selling a business, so they don’t know which kinds of services they need or who to trust with these services.
A small business broker with a strong reputation and track record can refer you to other professionals who provide the services you need. Keep in mind that, typically, a broker only makes money if they successfully sell your business, and the money they make is contingent on the value of that sale. So, it’s in a broker’s best interests to connect you with the services you need to make your business more saleable and valuable.
Best of all, brokers who work with small business owners tend to develop referral networks with similar professionals. That means referring you to other professional services providers who specialize in working with small businesses like yours.
A local business broker isn’t just a great source for referrals. They’re also a great source for information and insights about your local market.
This level of expertise can prove valuable in many different ways. If there are state or local regulations that could complicate the sale of your business, a great broker will not only alert you to these regulations but will also help you navigate them. If you find the perfect buyer but they’re looking for local financing, your broker will know where to direct them.
At the same time, a local small business broker will know how to market your city or region. Many business buyers are looking to not only find a great business, but also a great place to live. A great local business broker will know which types of buyers are attracted to your area, which qualities about your area attract them, and how to market your listing to these buyers.
Finding Small Business Brokers Near You
While selling with a small business broker has lots of advantages, that’s only the case if you find the right broker. If you choose an unreliable, inexperienced, or otherwise low-quality broker, you won’t enjoy these benefits.
Our suggestion? Start by contacting your nearest Murphy Business brokerage office. We have decades of experience working with small business owners. Additionally, each of our brokers offers the kind of local expertise you need in a small business transaction.
While we offer all the benefits that you’d expect from small business brokers, we also offer the perks of a larger brokerage network. Our brokers use a proven system for assessing, valuating, and listing small businesses for sale. We also have access to national and international brokerage networks. This allows us to reach a much larger pool of qualified buyers compared to your typical independent broker.
Looking for small business brokers in your area? Call (727) 725-7090 today and connect with your local Murphy Business Broker!