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Should You Hire a New Jersey Business Broker?

Should You Hire a New Jersey Business Broker?

…or Do It Yourself?

Abraham Lincoln once said that a man who represents himself in court has a fool for a client. While we would not go so far as to say that, it also applies to someone who attempts to sell his own business without a NJ business broker. Furthermore, there are significant reasons for not attempting to act as your own representative.

Why Hire a New Jersey Business Broker?

First, there is confidentiality. When you sell a business, confidentiality is usually an important objective.  Employees often leave if they learn of the impending sale, suppliers sometimes stop credit, and customers might leave. If any or all of these occur, the value of the business will be impacted.  A good NJ business broker will be a major asset in helping you maintain confidentiality.

Negotiating

Second, there is a negotiating process.  A capable NJ business broker manages the negotiating process without turning off the prospective buyer. This is important since the seller will often be required to work for the buyer for a period of time after the sale. The New Jersey business broker should also be able to obtain a higher price on more favorable terms then you would be able to achieve on your own.

Financing

Third, a good NJ business broker has financing sources and knows how to present a package to a financial institution that is more likely to be approved than would be the case if you were to attempt to assist the buyer in acquiring funding. They are aware of how different financial institutions perceive different types of businesses and industries, and they know how to present your business and the prospective buyer in the most favorable light.

Due Diligence

Fourth, the due diligence process must be managed. This is the process whereby the prospective buyer will have the opportunity to verify the truthfulness of what the seller has represented. This is the stage where many small business deals fall apart. Sometimes the seller has intentionally lied, but more often they have unintentionally provided inaccurate information.  A good NJ business broker knows how to manage the due diligence process so that the deal stays on track.

Final Thoughts 

Obviously, if you are selling the business to a relative or employee you do not need the services of a NJ business broker. If, however, you are placing the business on the market and advertising it to the general public, think long and hard before you attempt to go it alone.

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Sell NJ Business


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