If you’re selling a business, you will have probably considered hiring a business broker to see you through the process. But what role do they actually take on and what are their typical responsibilities? We break down the role of the business broker to clarify how they assist owners with the sale of their company.

Reaching Out to Buyers and Conducting Negotiations

The first thing a broker can do is to widen your pool of potential buyers. Business brokers are marketing experts and can reach out to buyers using various leads and contacts, both directly and through public listings.

They can contact competitors and investors discreetly, giving them key information on your business while maintaining confidentiality as to your business’s name and the finer details. As well as conducting initial negotiations with genuine parties brokers can also filter out unqualified buyers.

Valuing Your Business

As well as advertising and negotiating on behalf of sellers, brokers are trained in business valuation and are also tasked with estimating the company’s value.

Maximizing the Asking Price

This is all great news if you want to maximize your chances of a good sale – as most sellers want to do. High interest in a business from genuine prospective buyers naturally means that the purchase price is likely to be a good deal higher, and you are also in a stronger position to conduct negotiations when it comes to the terms and conditions of the sale.

Maintaining Confidentiality

As highlighted above, one of the core responsibilities of a business broker is to maintain their client’s confidentiality. Because they have access to sensitive information, it is essential that a confidentiality agreement, examined by an attorney, is signed before any services are agreed upon. As a seller, you maintain control over what information to reveal to prospective buyers and when, though any responsible broker can of course guide you through this process.

Guiding You Through a Sale

It is a business broker’s responsibility to guide an owner through the process of the sale. While it is quite possible, or even probable, that an owner may not have sold a business before, the business broker typically has a large amount of experience on buying and selling to fall back on. This experience is invaluable, so make full use of your broker’s knowledge of similar sales. Brokers will guide you through the essential processes of due diligence and other key aspects of the sale which need to be carried out in a timely manner.

This article was contributed by BusinessesForSale.com, the market-leading directory of business opportunities from online media group Dynamis.