Selling your business may be one of the most important financial decisions you make in your life. Whether you are moving toward retirement or changing course in your career, you will want to secure the highest possible sale price. Working with a certified business broker (CBB) can maximize your earnings and make the sales process much smoother.
If you’ve never sold a business before, you might not be sure where to start when it comes to selecting a business broker. There are many different factors to consider, including past sales experience, education level, areas of specialty, and certifications.
One thing’s for sure: Your chances of success selling your business drop dramatically if you don’t use a business broker. Only about 20% of business owners who try to sell their business themselves are successful. Of those 20%, the vast majority could have secured a better price and saved themselves many headaches if they had used a certified business broker.
What Does a Certified Business Broker Do?
Certified business broker Steve Barnett will help you through the many steps of selling a business. He will:
- Examine your business thoroughly to determine a fair listing price.
- Market and advertise your listing to serious buyers.
- Vet interested parties.
- Keep you informed of changing market conditions.
- Negotiate a deal that suits both the seller and buyer.
- Handle legal contracts and other paperwork.
Benefits of Using a Certified Business Broker
- Market knowledge and experience. Certified business brokers are experienced professionals with solid educational backgrounds and proven success in business sales. Your broker will know how to valuate a business, negotiate with buyers, perform due diligence, and guide you through a complex business transaction. With insider knowledge of market conditions, industry trends, business financials, and more, your broker will provide a realistic valuation and land the best possible price.
- Access to a professional network. When you work with a certified business broker like Steve Barnett, you gain connections to expert accountants, attorneys, and escrow personnel, as well as a network of motivated buyers looking for their next business opportunity.
- Confidentiality. In many cases, you will not want to publicize that you are selling your business until your deal is completed. Certified business brokers understand the importance of confidentiality and will ensure sensitive information and negotiations are kept private to protect both seller and buyer.
- Negotiation skills. Negotiating the sale of a business is a delicate process that requires a careful, professional approach. A certified business broker will advocate for you and your business while being sensitive to the needs of potential buyers to reach a deal that makes everyone happy.
- Handling the details. There are numerous steps to selling a business and lots of paperwork along the way. A certified business broker will manage your documentation, staying on top of deadlines and legal requirements. They will also coordinate with lawyers, accountants, and other involved parties to keep things moving as quickly and smoothly as possible. This way, you can continue to focus on running your business while the sales process moves ahead.
How to Choose a California Certified Business Broker
- Check their credentials. To become a business broker, the bare minimum requirement is obtain a real estate license. Additional credentials, including being a Certified Business Broker (CBB) or Certified Business Intermediary (CBI), show that a broker has serious training, documented experience, and a proven sales record. In your search, a broker who holds only the minimum real estate license and has limited experience in business sales should be a red flag.
- Consider their background. When you are checking out a potential broker, consider their education and work history. Do they have experience working in business, accounting, or another relevant field?
- Investigate their areas of expertise. Some business brokers like to focus on selling businesses of certain sizes or in certain industries. For example, The Valley Business Broker focuses on small to middle market and takes a special interest in family-owned and -operated businesses.
- Read client testimonials. Reading reviews and other testimonials can help you understand more about a particular broker, the results they deliver, and whether you may work well together.
- Don’t underestimate the importance of interpersonal skills. When you meet with a potential broker for the first time, pay attention to the way they interact with you. Do they give you their undivided attention and sound confident, informed, and respectful? If a broker makes you feel pressured or uncomfortable, chances are they will make potential buyers feel that way, too.
More About The Valley Business Broker
In addition to being both a certified business broker and a certified business intermediary, Steve Barnett has decades of professional experience and an education well beyond a basic real estate license.
Steve’s career has included several executive-level roles in the manufacturing and professional service industries, plus experience in consumer products, banking, staffing, and more. He has a Master’s of Business Administration (MBA) in Business Management, a Bachelor’s Degree in Accounting and Certified Public Accountant certification.
Steve’s well-rounded experience in the worlds of business and finance means you can trust him to understand your business, its worth, and how to lock in the best possible price with the perfect buyer.
Steve serves clients in and around the following areas:
- Los Angeles
- San Fernando Valley
- Ventura County
- Conejo Valley
- San Gabriel Valley
- Santa Barbara
- San Luis Obispo.
Make a Connection
Whether you’re ready to list your business ASAP or just want to start to understand your options, a free consultation with Steve can help you determine your next steps. Call (818) 625-2713 or fill out the form on our website to get started.