By: Ken Lewellyn, CBI

As a business owner, and part of the baby boomer generation, you’ve seen your share of
ups and downs in the business world. The time is coming to step back and take life in a
different direction. You’ve decided it’s time to seriously consider selling your business.
Where do you turn?

Many business owners in similar circumstances look first to their accountant or their
business attorney, people they’ve worked with and have developed a relationship with.
But the fact of the matter is they aren’t experienced in selling a business, just as you
probably would not ask them to sell your home for you (which is much easier). No
doubt, you’ll consult with them as you prepare to sell your business. But an initial step
should be to enlist the help of a professional business broker or intermediary.

A business broker or intermediary works to bring together buyers and sellers of
businesses. Finding the right person to fill that role is crucial to making the right deal to
sell your business. Here are some tips:

• Be sure to get referrals. It’s always advisable to get a referral from a trusted
source. Your accountant or attorney may be able to direct you to a broker with a
proven track record. Business brokers should also be able to provide you with a
list of satisfied clients.

• Check with the International Business Brokers Association (IBBA.org). The
IBBA is a non-profit trade association with over 1,900 members, providing education,
professional certification, conferences and networking opportunities. The IBBA
also provides the Certified Business Intermediary (CBI) designation for those
members who have successfully completed a number of IBBA courses, including
ethics, financial analysis, business pricing and valuation, legal and tax classes.

• Look for a specialist in business sales. A business broker who spends their full
time selling businesses will add more value to your sales transaction than
someone who just dabbles in the sale of businesses, among other endeavors. A
full-time professional intermediary will bring along a network of contacts and an
understanding of the principles of business valuation, marketing and
confidentiality. Find someone who is dedicated to the profession. Again, ask for
testimonials.

• Find a broker/intermediary you can trust. The business broker you contract
with must be someone that you believe you can put your trust in because you will
be working with him or her very closely for some time. He or she must have
credibility and bring across to you a sense that you can rely on him or her to
obtain the best price for the sale of your business in the shortest amount of time.

• Be wary of upfront fees. Fees vary depending on a number of criteria and what
you need in the way of analysis, appraisal and valuation. A business broker’s fee
is typically a commission based on the sale price of your business, and sometimes
includes a small upfront fee for valuation an/or marketing. Think twice before
you decide to work with any broker who asks for an excessively large upfront fee
to do a business valuation or to help market your company. Are they making their
money from their valuation/marketing fee, or from selling your business? (It
should be the latter.)

• Keep your plans confidential. The selling of your business should be kept quiet
until the time is right. A professional business broker will ensure that all
safeguards are in place to protect your company and all information is kept
confidential. Leaking your plans prematurely to suppliers, customers or
employees can have repercussions on your business operations.

• Steer clear of the pressure. Never rush into a decision. Selling the company
that you’ve poured your heart and soul into for years is a complex proposition; not
one to be rushed into. Be sure to take the time you need to learn about and clarify
all uncertainties.

Selling your business will undoubtedly be one of the biggest transactions you’ll ever
make and one that you’ll probably only do once. The right professional business broker
will help you find a source of potential buyers and aid in the sale of your company.
Work with a team of professional advisors for the best results.

Tennessee Business Services serves small business owners by offering services such as bookkeeping, taxes, IRS representation, business valuations, business turnaround consulting, sale of businesses and franchise advising.  Lewellyn is one of six business brokers in Tennessee to hold the Certified Business Intermediary designation, awarded  by the International Business Brokers Association.  Tennessee Business Services is located in Hendersonville, TN and can be reached at www.tnbizserv.com,  info@tnbizserv.com, or (615) 400-2150. 

The International Business Brokers Association is the largest international, non-profit association operating exclusively for the benefit of people and firms engaged in the various aspects of a business brokerage and mergers and acquisitions. IBBA has 1,950 members worldwide, with corporate headquarters in Chicago, Illinois.