When you decide to sell your business, you have two options on the table. You can either try to sell your business on your own or retain the services of small business brokers in Melbourne to handle all the transaction’s details. Taking all the responsibilities of selling the business on your sounds like a piece of cake or doable, but what most business owners don’t have these days is their precious time. Selling a business requires time, contacts, or related negotiation skills to close a safe and fair deal. To achieve great results making use of a third-party professional is one of the best options. But this is only possible if you hire the right small business broker who can properly represent your best interests. Hiring the wrong broker can be a difference between not selling at all and selling the business for a price that leaves satisfied.
Choosing a business broker with tremendous experience can handle the sale of your business. They can even try to maximise the value in the sale of your business.
Here are three questions you need to ask before hiring a business broker:
1) How Many Years of Experience You Have With Selling Businesses?
Before hiring a business broker, it is important to know whether they have any experience when it comes to selling businesses of different niches to different people. One must understand that selling a restaurant is different than selling a website, their business model is different and so as their target buyers. Experienced business brokers will have a handful number of buyers, making it interesting to work with someone who has buyers related to your business and has a better understanding of a particular industry. If you hire a business broker with less experience in terms of selling a business similar to yours, they will need to learn everything about your business and industry. This wastes valuable time that can be used on prospecting and negotiating.
2) How Many Businesses Have You Sold Similar To Mine?
Make a note of asking this question! It is important to find out how many businesses like yours a business broker has sold. However, one must not confuse this with the business type. Even in business type, there can be a huge difference in terms of business category, for instance, a restaurant. A small and cosy breakfast restaurant that has 20-25 seats is different from an Italian fine-dine with a bar that holds the capacity of 200 people. If the broker has not sold a business similar to yours, keep the search on and find the one that is experienced and qualified enough to handle your listing.
3) How Do You Value a Business?
This is one of the best ways to identify the experience of the business broker. Asking business brokers how they value a business will provide you with a good indication of how well-versed they are in this industry. If they respond to your question with an answer net income multiplied by two, get up and head out straight. Business valuation is a complex topic. Valuation calculation is much more than using a simple formula. There are various factors to be considered and they don’t work the same for every business. Most businesses are valued on a multiple of seller discretionary earnings (SDE). SDE is the net profit of the business added to expenses, that may benefit the owner but not necessarily the business.
If there is an agency you can trust with selling or buying a business, then ED Business Brokers is the right place for you. Many Chinese investors rely on their business brokers in Melbourne with their business because they offer a wealth of experience in business sales.
To know more about their service, visit https://www.edbusinessbrokers.com.au/.