Why You Should Use a Business Broker to Sell Your Business

When business owners are looking to transition out of their business for a variety of reasons – relocation, retirement, and change of career – they are presented with multiple options in regards to the future of their company. Should they close? Transfer to an employee or family member? Or sell? And if they sell should they do it on their on or through a business broker.

If the choice is to sell, a relationship with a business broker can provide an easier transaction with multiple and higher dollar offers. No matter what the business owner decides, they should work with someone who is an experienced business professional and active in the business brokerage community. In Colorado, business brokers should have active real estate licenses and be affiliated with our state brokerage association, Colorado Association of Business Intermediaries (CABI) as well as the International Business Brokers Association (IBBA).

For more helpful tips on finding the right business broker to help sell your business, read this article by Inc. Magazine, “Finding the Right Business Broker for your Business.” It includes helpful information from industry experts, including Transworld’s CEO, Andy Cagnetta.

How to Buy a Business in Colorado

The New Year brings many resolutions; one of the top every year however is change of career. To some that may mean changing a job, but to others it may mean entering a new business or becoming an entrepreneur for the first time. As we represent many current and new business owners in Colorado, we have compiled the top five things every individual should know before they buy a business.

  1. Determine what you are looking for: Searching for a business that ‘cash flows’ and is ‘growing’ is a pretty difficult process. Short of interviewing thousands of business owners there is no way to determine which businesses fit these criteria. Start with a more concrete qualifier instead. Do you want a business with high profitability? Low overhead? Established staff? Brick and mortar location?
  2. Narrow your search: Now that you have your determinants, research specific industries that you are interested in and compare them to your qualification requirements. If you want low overhead and a home based business, a restaurant probably isn’t for you.
  3. Do some research: Read up on your target industries; know what typical industry statistics are when it comes to profitability, overhead, and staffing.
  4. Hire a broker: Yes, we are partial on this one but it’s true. Just like you are an expert in your field, business intermediaries are experts in buying and selling businesses. A broker can provide you invaluable knowledge on current sales trends, businesses that are available for sale, and even find you businesses that are not yet on the market. 
  5. Stick to your gut: You can spend years (yes, years) researching different opportunities. Stop wasting time looking at businesses that don’t fit your qualifications, if something doesn’t feel right from the start – trust your instinct. Say no, and move on.

Buying a business is a complicated manner. If you have additional questions, please contact one of our Colorado business brokers at 720.259.5099 or email us. You can also read more about our buyer services at this link.