Selling a business is not an easy task—the process can be quite difficult and stressful, especially for smaller business owners who have never gone through the process of selling a business before. It’s why many business owners turn to professional business advisors for guidance. Business consultants are in increasingly higher demand due to the fact that they help guide owners through the selling process step by step. The following are some of the ways that business consultants can help:
1. They Will Provide a Comprehensive Business Analysis
Before putting a business up for sale, a business advisor will perform an in-depth analysis of the company. They will take a close look at the company’s finances, their operation and their marketing research potential. This gives the adviser a better idea of the company’s capabilities and worth, which in turn allows them to generate an accurate business profile that will represent the business in a way that will attract more potential buyers.
2. They Will Structure the Sale of the Business
This involves identifying the proper value of the business in order to set the price of the sale. A business advisor will use a wealth of information in order to determine this price, including not just the business analysis that they performed, but also the condition of the current market, the sale of other similar businesses within the same industry, the sales potential of the company and the projected growth of the company. This is no easy task—setting the value too low will lose the owner money, while setting it too high will scare potential investors away. This is not something that you can figure out yourself, no matter how many leadership workshops you have attended in the past.
3. They Will Market the Sale of the Business
Once the price is set, the advisor will use their network in order to reach other business brokers and buyers throughout the world. Their network provides more exposure to the sale of the company, which helps attract more potential buyers for a quicker sale at the price that’s been set. Additionally, they will aggressively market the business on various sites, industry databases and publications. Obviously, these are some of the notable outsourcing benefits that come with hiring a business advisor to sell your business.
Without access to their extended network or their aggressive marketing, an owner’s business can languish on the market for months, losing value as it does so due to a lack of interest caused by a lack of exposure.
4. They Arrange Meetings.
Business advisors will help you arrange meetings with potential buyers. In addition to just getting in touch with prospective business buyers, they will also schedule important viewings and meetings on your behalf. That leaves very little for you to worry about managing on your own. That can be especially helpful if you are not the most skilled at public speaking. Of course, when you have an expert dealing with buyers by arranging meetings for you, you are bound to have better results when selling your business.
5. They Will Be Careful with the Company’s Information
Only the necessary documentation and information will be needed for advertising the business in order to maintain confidentiality. Buyers will be pre-qualified and will be required to sign a confidentiality agreement before any sensitive information concerning the sale is provided to them. Even in online meetings, the level of security is maintained.
6. They Will Qualify the Potential Buyers
In many cases, the buyers who make an offer for a business are not properly qualified, which ends up leading to a doomed negotiation. This, in turn, wastes the time and money of the owner. Advisors for businesses will ensure that potential buyers are qualified for financial ability before they are allowed to present their offer. This is definitely the kind of business help you need.
7. They Will Help with the Negotiation Process
In order to receive the best price and terms, negotiations are necessary. A good business advisor has the experience and expertise to effectively negotiate with potential buyers in order to ensure the owner gets the best price and terms that they can get.
8. They Will Guide Owners Through Due Diligence
Once the right buyer has been found who is willing to pay the right price, the owner must go through due diligence. This is particularly essential if you found a buyer through online small business forums or similar means of digital correspondence. Business advisors will work with all of the accountants, banks, lawyers, and other third parties involved in order to help push the transaction through.
9. They Will Help with the Closing
Unfortunately, closing the sale isn’t as easy as just signing on the dotted line. There are all kinds of administrative procedures, intangible assets, inventory counts, licenses, and lease assignments that have to be taken care of. A business advisor will help the owner prepare and get through all of the paperwork that’s involved in this step of the sale.
10. They Will Help with the Transition Phase
Once the sale has finished, most business advisors will provide additional consultation to the previous owner to help make the transition from the owner to the buyer a smooth one. They can even teach useful cost containment strategies that will help the new owners reach success.
11. They Provide A Neutral Opinion
Business consultants have the added advantage of providing a neutral, third-party opinion when you really need it. Things can get a little heated when selling a business. Sometimes it can be difficult for business owners to detach themselves from the emotional connection they have with their business. This can negatively impact decision-making abilities. You cannot make clear business decisions with a mind that is crowded with emotions. Business advisors provide a much needed neutral third-party to provide impartial input when you need it most. This is a huge advantage if you want to stay in the business long-term.
Consultants play an important role in the sale of a business. Because so few business owners have experience selling a business, they often turn to business consultants for their expertise. As you can imagine, this has resulted in a high demand for business consultants.