3 Ways to Sell Your Business
- Mar 24, 2021
1. Business brokers
Choosing to use a business broker to sell your business might feel like the best choice, but that's only because it's a common choice. And, the fact that it's popular doesn't mean it's the best option.
The biggest downside of using a broker is the high fees. Broker commissions typically tend to be around 7-8% of the final sale. While for some big businesses, this may not be that much of a deterrent, it can be a far more significant blow to smaller business owners.
The word 'expert' gets thrown around a lot in our world, and some business brokers impulsively stick it into their bios. As the business world is a jumble of contrasting industries, it's almost unjustified to declare yourself a 'business expert.'
If you have a specialised business, the likelihood is that a business broker 'expert' won't actually be an expert in that market and won't truly be able to find the best or most profitable buyer for your business.
Lack of experience or not properly doing market research are common mistakes made by business brokers, and the only one that really suffers, in the end, is you. By placing the sale into the hands of someone completely unfamiliar with your business or industry, you could be jeopardising your deal.
2. Privately
If you are now firmly put off from business brokers, you might now be thinking – why don't I do it myself? That's understandable. However, there are drawbacks to this option as well.
While you will have a better understanding of your company than a broker, there are still vital components of business selling that you might be unfamiliar with.
There's also the time aspect. Selling a business is time-consuming, and there's a substantial amount of paperwork involved. Working through legal documentation and securing a smooth transition of power aren't easy, straightforward tasks.
What should be a period of relaxation can quickly become overwhelming and stressful.
3. The Legacy Partners
The best option for selling your business is not only one that will yield the greatest returns but also one that ensures continuity.
Our process does both. We take the time to understand the ins-and-outs of your company, its constraints, financials, and capital. By establishing a more coherent understanding, we can start to identify growth opportunities.
Since you are the business's beating heart, it is also important for us to understand you, your strengths and weaknesses, your goals and objectives, and ultimately how we can help create an ideal (and profitable) exit strategy.
We don't claim to be experts in your industry, but we are experts in finding someone who has the right experience and capital to carry your business forward.
An essential part of our process includes assembling an advisory board. This board will be made of you, your new incoming business partner, and an independent advisor. The advisory board will oversee pre-determined objectives and ensure the business is staying on track.
After purchasing a share of your business, your new business partner will take over managing and growing your business while you get to sit back and relax or concentrate on parts of the business you enjoy doing. Over the next few years, they will become the expert you always dreamed of having. Over a period of time, they will eventually buy 100% of the business, and you can make your final exit.
Passing your business off to a stranger with no previous knowledge of your industry or trying to navigate through the confusing world of business-selling on your own can both have serious financial implications. Through The Legacy Partners, you can be confident that you will receive what your company's worth and be assured of its continuity.
Get in touch with us today to see how we can maximise your return and leave a legacy.
