Excellent Results For Nada’s Hair Salon Sale
When you’re ready to sell your business, the last thing you want to do is choose the wrong broker.
We understand that as a business owner, it is all too easy to let one bad experience spoil your opinion of all agents. In this case, a few bad apples don’t spoil the whole bunch.
Thankfully in Nada’s case, she decided to engage with Bonza to sell her hair salon. We believe this Google review speaks for itself:
“Absolutely 100% the best! I can’t thank Matthew Newton and his team enough.
I’ve dealt with other brokers in the past and they couldn’t deliver the way Bonza team did. Every stage in selling my business they informed me. Any question asked was never a problem to understand how the process works.
Thank you Matthew for your enthusiasm and support. Wouldn’t go to anyone else. Highly recommended”
The hair salon was listed for just over 4 months and after 17 enquires the business was sold for a price Nada was very happy with.
There are excellent brokers out there who genuinely care about their client’s success and go above and beyond for them. Here are a few things to look out for when looking for a business:
If you speak with a business broker and discover that they have few to no reviews or references, this is not a good sign. A skilled broker should have numerous reviews and references from satisfied clients.
Checking the broker’s Google reviews is a good place to start.
Unrealistic Expectations of Value
This could also be referred to as “buying the listing.”
You may feel validated at first because they agree with what you believe your business is worth, but don’t get your hopes up.
This is usually a red flag for inexperience. Based on business valuation methods, experienced brokers should be able to provide you with an indication of value.
Businesses are valued using a multiple of EBIT (Earnings Before Interest, Taxes, and Depreciation), not a hunch or gut feeling. If you do not properly value your business, prospective buyers may overlook it, and your business may be on the market for a longer period than you would like.
Advertising Your Business Is Crucial
There are thousands of buyers out there in the marketplace but once you filter through those to your specific industry, and then to your geographical area the buyer pool obviously becomes smaller. Therefore, capturing each potential sales enquiry becomes vital. The more buyers the broker can find, the faster the sale in most cases and the better the chance to achieve the desired price.
These days 95% of buyers simply use search engines like google to find businesses for sale. Google directs buyers to the biggest business for sale websites online. It’s very important that your business broker is exposing your business to as many of the major business for sale websites as possible so that you don’t miss a serious buyer.
Professional Representation Of Your Business
This covers everything that occurs after a buyer inquires on your listing. The speed with which the buyer is contacted after making an enquiry shows that we are taking their enquiry seriously. How well your business’s information is presented to them after they sign confidentiality agreements, ensuring that it’s in a clear and easy to understand format so that we don’t overwhelm or frustrate them. This enables buyers to make the decision to move ahead more quickly and comfortably. Finally, the support shown to the buyer throughout the purchasing process, framing them for each subsequent step. It all makes a big difference in the outcome of your sale.
Brokers Who Pressure You To Sell
When a broker tries to persuade you to sell right now, it’s usually a bad sign. The decision to sell your business is highly personal. Avoid any service if you feel he or she is using fear tactics to get you to sell.
Pushy brokers are not acting in your best interests. They care more about getting a listing than doing what’s best for you.
Before signing an agency agreement, a good broker will give you the facts, share their professional opinion when necessary, and ensure you’re truly ready to sell. That is the tone of a good professional advisor.
Any experienced business broker knows selling a business is a huge step. They also understand that good engagements take time to materialise. They proceed with understanding and prioritise the sellers’ interests over their own.
Hire a Broker You Trust
Selling your business could be one of the most significant financial transactions you will ever make. Spend the time necessary to find the broker right one for you.
Knowing the most common issues ahead of time allows you to ask brokers questions about their history, pricing, and processes in order to find one you can trust to sell your business.
Over the years, we have worked with hundreds of business owners who began with negative perceptions of brokers. Bonza Business and Franchise Sales has been exceeding expectations since 2017. If you’re unsure who to believe, contact us for an open discussion about what is and isn’t true.