A business broker is a trained professional who helps people buy and sell businesses.
Brokers are useful in the standard practices needed to sell a business, such as gathering the proper documents, estimating the value of a business, and connecting sellers to potential buyers.
Another important role brokers play in the sale of a business is as a facilitator of marketing.
Without help getting the word out and a proper media strategy, and the proper connections to reach the most people, sales could stall.
Brokers are vital to market a business to buyers, as they often have substantial:
- Access to media, websites, and real estate magazines
- Access to database of qualified buyers and their emails
- Expertise developing marketing strategies
- Professional experience creating business profiles
To sell a business, a broker will provide many ins and out to help with the process. Marketing is an important step in this process and can make or break the success of the sale.
Why is Marketing Important?
It’s tough to sell anything that has sub-standard marketing, and selling a business is no exception.
Marketing of any sale is used get people interested in products or services of a company.
Business brokers use marketing strategies for a slightly different purpose: to represent a business in the best possible and connect them with the best buyers in their databases.
Further, brokers who properly market sales can:
- Accelerate the time it takes to close a deal
- Control the amount and frequency of information exchanged
- Attract serious, high-quality buyers
- Signal clarity and professionalism
There’s a reason business brokers insist on investing time and effort into marketing. It ensures a solid start to the sale process and gives sellers the best chance of success.
So, how is it done?
First of all, when it comes to selling a privately held company, no ready-made market exists. Brokers are professionals who can supply or make a market specific to each business.
Here are the four most common channels used to market a business for sale:
- Direct outreach to a custom buyer list — A targeted auction can be used to identify a relatively small number of specific potential buyers, and reaching out to them through mail, phone, email, or social media accounts
- Internal email list of buyers — Contact information can be used to announce new acquisitions from a proprietary list of buyers who reached out in search of business-for-sale and investment opportunities
- Capturing buyer social media platforms — A broad effort can be make including posting and/or advertising on Facebook, Twitter, and Instagram, and LinkedIn
- Business-for-sale websites — A number of marketplaces can be used individually or in combination as part of a marketing plan to broadcast a business for sale opportunity
These are some of the resources that business brokers use to market a business for sale. Which ones to use — and in what combination — depends on the business, the pool of potential buyers, and the sale process that the broker decides to run.
Creating Marketing Documents
There are two primary documents that a business broker creates — A teaser (sometimes called a “blind profile”) and a confidential information memorandum (CIM).
The teaser is a one-page document that provides just enough information about the business to get prospective buyers interested in learning more. This short document does not name the business or reveal any identifying information. The language in the teaser is typically the verbiage used to set the tone for the marketing channels listed above.
A CIM is a lengthy (50-150 page) marketing document that provides potential buyers with a detailed first impression of your business.
An experienced broker is fluent in creating these documents and using them to market businesses effectively.
Great Marketing Leads to Success
Marketing is essential.
Using a broker can assure that this foundational step in the process is done correctly.
Brokers who provide great marketing attract the right buyers, justify asking prices, and all allow sellers to negotiate from a position of strength.
Powerful online marketing mixed with experience, connections, and drive, deliver the desired results for clients of Michigan Business Broker.
For the best business broker experience that can provide these vital marketing services, call (248) 220-3274 or email nadir@mibizbroker.com.