Advantages of Selling Your Business Privately
Selling a business is a life-changing decision for an entrepreneur who has given his sweat and blood to the enterprise and set it up from scratch. With years of commercial trading experience, business owners are aware of the marketplace challenges in cracking a successful deal. It is quite easy for them to privately sell their business in the United Kingdom, without the help of a broker or agent. Although the middlemen are adept at carrying out negotiations and assisting with the paperwork, they charge a hefty fee for their services and may not be able to find the best buyer because of the pressure of work.
With the advent of the digital age, selling a business has become all the more effortless. You can create a business listing online and screen the qualified leads to find the best match for your company. Whether you are a self-employed sole trader working from home or hold the charge of a big conglomerate, all kinds of organisations can be comfortably sold online without the interference of a third-party. More and more people are embracing the idea of buying and selling online as it saves time, money and effort. Let us throw some light on the advantages of selling a business privately in the United Kingdom.
1. Active Participation in the Selling Process
With an agent handling the affairs, usually, the seller tends to take a backseat and relies on the expertise of the broker to get a good deal. However, often it is essential to be on the top of the things to read between the lines of the contract and understand the eligibility of the buyer from the owner’s perspective. It gives you the assurance that everything is going as planned and you personally meet and finalise all the details of the sale with the buyer. It gives you peace of mind to know that you are in charge and, in turn, speeds up the process. You can refer to the UK government website to organise the paperwork and know all about the responsibilities of the seller.
2. Doing Away with the Commission of the Agent
Paying commission to the broker leaves the seller feeling discontented as a big chunk of the payment gets disbursed to him. Starting at 10%, they may go up to 20% of the whole amount which transforms into a lot of money. When you take the responsibility of selling your business privately, you effortlessly save this money which can be reinvested into other ventures. Thus you can earn a higher return on your investment and diversify your finances. Also, the brokers are simultaneously working on a number of projects and it becomes difficult for them to pay individual attention to each sale. At times, the small businesses get neglected and stay unsold for a long time.
3. Prompt Response To Sales Queries
As the owner of the business, you know the company inside-out and are quick in responding to queries from prospective buyers. You can provide instant information on all aspects of the business, whereas an agent will have to consult you and then revert to the buyer which can delay the process and lead to loss of interest from the buyer’s side. An entrepreneur has the expertise of turning hurdles into opportunities in a business environment and can leverage this experience to carry out a smooth transaction. Also, an incompetent broker can prove to be a deal breaker and can land you in a messy situation where you will not be able to get the best price for your much-loved enterprise.
4. Flexibility to Make Changes
Since you control the negotiations, you are free to make changes according to your needs and requirements without thinking about the commission money. You must undertake the due diligence process to come up with the best price for the company. There is a possibility that you may land a big project and would not want to sell your business anymore. In such a scenario, you can comfortably make an exit from the process. However, an agent will not let you do so as they lock the entity for definite periods untill it is sold.
5. Online Business Listing Is A Bliss
With the advantage of getting your business listed for sale online, you can sit back and relax. There is no need of running around to find buyers or publish expensive advertisements in newspapers. You can quickly find qualified buyers and ask for competitive selling price to get a better deal without any fuss. Plus, you can place the advert anonymously so that there is no panic in the workforce or the stakeholder community related to the change of the management. The customer support is available to help you with the process at every step of the way.
Selling your business privately is the best way to get the highest price for your company. It is not dependent on any third-party who can exert its control and take advantage of the situation to mint money. Thus if you are putting up your business for sale in the United Kingdom, then the smart way to go about it will be to do it yourself.