Unfortunately, sometimes the only way to keep a business up above water is to sell parts of it to other companies or merge with a more well established company in the same business looking to bring in new products, fresh faces and/or just take over your business in general and run it their own way. A big example would be Google, they own more than 50% of the search engines on the internet, at this point. They bought out the rest and are now enjoying the benefits.
It’s not all about money though, sometimes people just get too old or too tired of their business and are looking for a way out of it that will benefit everyone involved. This is where resources like the Business Broker Association come in handy. If you’re unaware of what a business broker actually is – it’s a person or firm that acts as an intermediary between sellers and buyers of businesses. They’re also known as business transfer agents or intermediaries who assist buyers and sellers of privately held business in the buying and selling process. They typically estimate the value of business; advertise it for sale with or without disclosing its identity; handle the initial interviews, discussions and negotiations with prospective buyers; facilitate the progress of the “due diligence” investigation and generally assist with the business sale. Traditionally, the Business Brokers provide a conventional full-service, commission-based brokerage relationship under a signed listing agreement with a seller or “buyer representation” agreement with a buyer, in most states thus creating under common law an agency relationship with fiduciary obligations.
I will say that I haven’t come across many websites on the internet in regards to business brokers, until I came across the Business Broker Directory earlier this evening. They are a comprehensive directory of Business Brokers and M&A Professionals. With over 5,000 Brokers and M&A Professionals listed in their database. Brokers are based in the USA and Canada but they are currently in the process of expanding their directory to include over 80 countries world-wide.
A resource worth checking out if you’re interested in selling your business through a professional.