Both brokers and real estate agents can be licensed to handle the sale or purchase of commercial property and existing businesses. There are a few differences that business owners will want to keep in mind when considering Selling a Business. It may be wise to set up a consultation appointment with one of each before making a final decision.
Difference Number One
The first difference is in how valuations are conducted. Real estate agents focus on presenting accurate valuations of the land, building, equipment, fixtures, and inventory. Accurate valuations are presented by business brokers Baltimore as well, but include non-tangible components in addition to the physical ones. The location of the business, the potential for growth, and the experience of current management professionals and staff are also included. This difference can add several thousands of dollars to the asking price, if not a million.
Difference Number Two
Agents have marketing strategies and viewing techniques geared toward selling the space. Brokers have a better understanding of business buyers and can market the business in a manner that attracts serious buyers. Some buyers are interested in operating the business, while most buy businesses as investments and have no intention or desire to run the business. This is where an experienced management staff becomes a selling point.
A Third Difference
Knowing how to sell a business is different from actually selling a business. Success rates will vary, but in terms of selling the business, a broker may be the better choice. Pitching the entire business to a buyer is different than attempting to sell property. The outcomes will also vary. Timing, pricing, marketing, and finding the right type of buyer for businesses aligns closer to the scope of experienced brokers than commercial real estate agents.
Huge Investment
Business owners have invested large amounts of money, time, and talents to building up their businesses. Selling it is a major decision, and a difficult one. Ensuring desired outcomes depend a great deal on valuation and presentation. Take the time to discuss wants and needs from the sale of the business and discover how each type of professional plans on meeting the goals.
Find someone with whom you are comfortable and feel confident about. That professional will be representing the business and your interests, so trust in also an important aspect of the working relationship. Do not rush into a final decision that may cause regret later. Consult with as many people as needed before signing a contract.