Selling: What Does An Intermediary Expect From You

If you are seriously considering selling your company, you have no doubt considered using the services of an Intermediary / Business Broker. You probably have wondered what you could expect from him or her. It works both ways. To do their job, which is selling your company; maximizing the selling price, terms and net proceeds; plus handling the details effectively; there are some things Intermediary / Business Broker will expect from you. By understanding these expectations, you will greatly improve the chances of a successful sale. Here are just a few:
• Next to continuing to run the business, working with your Intermediary / Business Broker in helping to sell the company is a close second. It takes this kind of partnering to get the job done. You have to return all of his or her telephone calls promptly and be available to handle any other requests. You, other key executives, and primary advisors have to be readily available to your Intermediary / Business Broker.
• Selling a company is a group effort that will involve you, key executives, and your financial and legal advisors all working in a coordinated manner with your Intermediary / Business Broker. Beginning with the gathering of information, through the transaction closing, you need input about all aspects of the sale. Only they can provide the necessary information.
• Keep in mind that the selling process can take anywhere from six months to a year — or even a bit longer. An Intermediary / Business Broker needs to know what is happening — and changing — within the company, the competition, customers, financially, etc. The lines of communication must be kept open at all times.
• The Intermediary / Business Broker will need key management’s cooperation in preparation for the future visits from prospective acquirers. They will need to know just what is required, and expected, from such visits.
• You will rightfully expect the Intermediary / Business Broker to develop a list of possible acquirers. You can help in several ways. First, you could offer the names of possible candidates who might be interested in acquiring your business. Second, supplying the Intermediary / Business Broker with industry publications, magazines and directories will help in increasing the number of possible purchasers, and will help in educating the Intermediary / Business Broker in the nature of your business.
• Keep your Intermediary / Business Broker in the loop. Hopefully, at some point, a letter of intent will be signed and you will move forward to drafting the final documents. Now is not the time to assume that the Intermediary / Business Broker’s job is done. It may just be beginning as the details of financing are completed and final deal points are resolved. The Intermediary / Business Broker knows the buyer, the seller, and what they really agreed on. You may be keeping the deal from falling apart by keeping the Intermediary / Business Broker involved in the negotiations.
• Be open to ALL suggestions. You may feel that you only want one type of buyer to look at your business. For example, you may think that only a foreign company will pay you what you want for the company. Your Intermediary / Business Broker may have some other prospects. Sometimes you have to be willing to change directions.
The time to call a business Intermediary / Business Broker professional is when you are considering the sale of your company. He or she is a major member of your team. Selling a company can be a complex and long-term proposition. Make sure you are willing to be involved in the process until the job is done.