Whether you are starting a brand new venture or expanding your current business you need to ensure you aren’t paying more than you need to. If you have considered using a business agent, we urge you to remember that a business agent isn’t working for you. They are working for the seller!
Using a business agent may be a quicker process but is it the best for your business?
It will likely cost you more, as the agent is usually paid a commission on the sale price. The more they can persuade you to pay, the more they earn. Businesses offered for sale via business sales agents are usually overpriced. A previous example we were involved in, was a business which two agents said was worth £80,000+. It was eventually sold for £15,000. Neither we nor the client thought the price suggested by the agents was credible, and it wasn’t.
Some agents offer us commission for helping them sell a business. In other words to persuade our clients to pay as much as possible so we, and them, earn more.
Here at Central Business Services we prefer to be independent and advise our clients properly.
Our team have years of experience and knowledge. With our understanding of accounts, we can look at the business and the available information to help you arrive at a sensible valuation. This will help you negotiate with the seller. We will help you identify the risks involved in the business – the riskier the business, the lower the price should be. Something conveniently forgotten by agents who often work on (inflated) multiples of sales or profit.
Sellers will sometimes hide things in the accounts. Our experience across a range of different businesses, helps us spot the anomalies – and question them.
Asking us to check any business you are considering buying is not going to be free but our input and experience could save you thousands of pounds!