A business broker is first and foremost about contacts. There was a small company which produced a new kind of energy drink last year that was doing very well. With a staff of just nine people, the company was valued at around two million dollars, and the owners decided it was time to sell off and get rich. Instead of hiring a business broker to set up meetings and find the right buyer for their company, the owners decided to sell their business on their own. Sadly, the energy drink geniuses were unable to make the right contacts, and ended up spending months traveling from one potential buyer to the next, taking meeting which brought them nowhere and which costs them thousands of dollars. Finally, the company reached a point where they were losing money and they knew if they didn’t sell of their company fast that they would lose miss their chance, perhaps for good. The company decided to contact a local business broker, www.businessbrokercolorado.com, and try their luck with them. After just one week, the Colorado brokers were able to get their clients into a meeting with a giant energy drink producer who had been looking to acquire a new energy drink for moths. The deal was made in just six hours, and the small energy drink producer which had valued its worth at around two million, ended up selling their company at almost double that price. Business brokers spend the vast majority of their time and resources at the task of making the acquaintance of every important business buyer in their area. Brokers have long lists of potential clients which they know are itching to buy different types of business. When a small company comes to a broker to sell business, they are matched with the best option of buyers which the brokers already have lined up. Many companies end up not being able to sell, or selling for far too little because they simply didn’t have the needed contact to make the sale.
A business broker firm can also make a massive difference because they know when to sell. Apart from the many contacts that brokers have, they also have a very intimate knowledge of the market which helps them assist their clients by letting them know when the time has come to buy or sell. A company may decide to put their business on the market, but after speaking with a broker they are advised to wait. A company might sell for huge amount more when it is placed on sale at just the right time. Brokers watch the market patterns and study the sale of other related companies all year round, and that allows them to be able to detect when the right time has come to sell off. A broker can tell their clients if the market will be better a few months down the road, or if they need to let their business grow a little more in order to attract bigger fish. The way that brokers know the markets inner workings is what makes them so valuable to their clients.