Below are the key reasons why a business owner should use a Business Broker instead of a Real Estate Agent to answer the question “how do I sell my business”?
- Confidentiality-Real estate agents believe in putting a sign in front of your business saying “FOR SALE.” Most savvy business owners know that is the kiss of death for the business. You can lose employees, customers, vendor relationships and banking relationships and, using a real estate person, you may never be able to sell your business. You lose twice!
- Pricing-Real estate agents know a lot about pricing a piece of real estate but nothing about pricing a business. They may price your business so high that you never sell it. Or they may price it too low and leave your money on the table.
- Errors and Omissions Insurance-Most real estate agents aren’t aware that the real estate E&O insurance generally has an exclusion for business sales.
- Negotiations-Real estate agents aren’t allowed to tell a prospective buyer why a piece of real estate or home is being sold. Business brokers know the first question a business buyer is going to ask is, “Why is the seller selling?” Business brokers prepare the seller to answer that question as the beginning of negotiation.
- Financing a business sale-Real estate agents don’t know how to help a buyer get a business loan. It’s a much more complex loan that real estate mortgages.
- Due diligence is much more detailed-Real estate agents know how to walk through a home and order an inspection but they don’t understand the nuts and bolts of tax returns, profit and loss statements, balance sheets and other financial data that is absolutely necessary as part of due diligence for a business sale and purchase.
- You may have a real estate agent who you really like. If they really like you they will refer you to a professional, experienced business broker.
Contact us today to see how we can help you sell your business! Call (877) 582-5200 or email firstname.lastname@example.org.