Proceeding Alone or With a Broker?

It all depends on the context and your skills. Normally, a traditional entrepreneur sells one company in his or her lifetime.

I often say that the entrepreneur is in a better position to manage his business and that he should entrust the sales process, which is time-consuming and can cause the loss of control of the daily operations. We have seen entrepreneurs who have suffered significant financial losses, their company has started to go less well since they lacked the time to follow the day-to-day business. The amount of shortfall can easily exceed the broker’s fee. Remember that the selling price is a profitability multiplier – it can get expensive.

When approaching potential buyers directly, the broker can go in a more confidential way than the seller. Furthermore, the broker, as it is his or her job, will be much less likely to fall in love with the buyer and make undue concessions to reach a transaction.

What we have seen in cases where the entrepreneurs are selling on their own, that they are satisfied with a buyer who has shown serious interest. Every effort is being made to advance the deal. If the buyer backs out, everything has to be started over from zero, as the vendor does not have the tools and the habit of managing this process. We have also seen undue concessions for fear of losing this buyer or for lack of perspective on the transaction.

Knowledge of coordination between tax, accounting, legal and operational remains complex and requires an expert. When the broker is versatile and competent, added value can be found at this level as well.

Simply put, selling a business takes time, costs money, and should be done with care. As in everything, you can't have something quick, cheap and well done..., choose what you prefer. Once your business is sold, you won't know what you could have received. Typically, if you pay peanuts, you get monkeys.

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