Blogs

How to Choose a Business Broker & Why It Matters More Than You Think

 

When it’s time to sell your business, few decisions are more important than choosing the right business broker. This isn’t just a transaction – it’s the culmination of years of effort, risk-taking, and dedication. The right broker can significantly increase your final sale price and ensure a smooth, confidential, and professionally managed process. The wrong broker, however, can cost you time, money, and peace of mind.

So how do you choose wisely?

Key considerations when selecting a business broker:

Experience Matters – But Not Just Any Experience

Why Buying a Business May be the Smartest Way to Grow Your Business Value

Buying a Business

Most businesses are valued on a ‘multiple of earnings’ approach.

And, the higher your overall revenues and earnings, the higher multiple you are entitled to when it is time for you to sell.

For this reason, it may make a lot of sense to consider buying another business in your industry. Here’s why:

Let’s say there is a $2,000,000 annual revenue business in your industry, in your state and it is generating $400,000 in earnings for the Owner.

That business might be worth 2.5 - 3 times earnings.

Now, assuming you are the same size, you are worth a generally similar amount.

How Buyers Value Your Business - Part 2

In this 2nd interview with Jeff Swiggett, award-winning Business Broker, you will learn how Buyers may pay you more or less for your business, based on 6 Risk Factors that they evaluate. In this episode we’ll discuss:

1 - The conditions of the markets that the Business is serving, and

2 - The Client Concentration issues that may impact your value,

and BONUS TOPIC:

3 - Pandemic effects that have adjusted values.

 

CLICK TO DOWNLOAD

 

How Buyers Value Your Business - Part 1

We interview Jeff Swiggett, Business Sale and M&A Advisor as part of our Expert Interview series.

Jeff discusses how Buyers look at your business across 6 different value and risk factors.

This first interview covers Owner Dependence and Financial Controls as key issues that Buyers want to explore as they are preparing to make you an offer to buy your business.

This series of interviews provides great guidance on how to prepare for a strategic exit or sale of your company.

 

5 Exit Planning Mistakes.... when you sell your business.

If you're a business owner and you're thinking about maximizing the value of your business for a sale or an exit someday, it's important to know about exit preparation and the five expensive mistakes to avoid as you're on your way toward a strategic exit. Kevin Murray, the founder of Energize Your Business, which helps business owners grow their companies and get prepared for an exit tells you how to sell your business in this informative video. You can watch the video or read the full transcript below the video.

Pages