Selling a business is a highly confidential matter and a broker should institute all safeguards possible to protect your company.
If word leaks out to suppliers, employees or customers there could be dire repercussions on business operations, which could jeopardise a business sale.
Delivering a sound marketing plan is vital when you sell a business. A broker should prove they are competent in marketing your business to a wide range of potential buyers. They should be skilled in highlighting the business’s most attractive features, while downplaying or explaining how its weaknesses can be mitigated.
Avoid any broker asking for a large upfront fee for valuing the business. Broker fees generally range from between 10% and 15% commission of the company’s sale price.
The vendor should never let a broker pressure them into making a snap decision. It’s important to remember that selling a company is a complex transaction and one that takes time to clarify all uncertainties.
It’s the professional intermediary’s job to explain all aspects of the deal which you don’t understand and advise you on the way forward at all stages of the process.