Can I Sell My Own Business?

Selling your own business is a big decision, and naturally, many business owners wonder whether they can handle the sale themselves rather than hiring a professional. The thought of saving on broker fees might be tempting, but selling a business involves far more than simply listing it for sale and waiting for buyers.

In this post, we’ll break down the pros and cons of selling your own business, so you can make an informed decision. If you’re considering selling your business in New Zealand, we’re here to guide you every step of the way at New Zealand Business Brokers.

The Pros of Selling Your Own Business

1. Save on Broker Fees One of the most obvious reasons you might consider selling your business independently is the potential savings. Business brokers charge a commission. By handling the sale yourself, you eliminate that cost and potentially pocket a larger portion of the sale price.
2. Full Control of the Process Selling your own business means you have complete control over every aspect of the sale. You can choose the buyers you engage with, set your terms, and negotiate directly. If you value complete control over the sale process, this could be an attractive option.
3. Personal Knowledge of the Business No one knows your business better than you do. By handling the sale yourself, you can directly showcase the strengths and potential of your business to potential buyers. You’ll be able to provide in-depth insights and answer questions from buyers with a level of detail that a broker might not.

The Cons of Selling Your Own Business

1. Time-Consuming Selling a business takes time. From preparing financial documents to marketing the business and vetting potential buyers, the process can be incredibly time-consuming. Many business owners don’t have the bandwidth to dedicate themselves fully to the sale while continuing to run their business.
2. Limited Buyer Reach Business brokers have established networks and access to a broader pool of qualified buyers, including those who may be specifically looking for businesses in your industry. When you sell on your own, your pool of potential buyers is limited to your personal contacts and general marketing efforts, reducing the chances of finding a serious, well-qualified buyer.
3. Valuation and Pricing Challenges Determining the right sale price for your business is tricky. You want to price it high enough to maximise your return, but not so high that it deters buyers. Without an expert broker, you may overprice or underprice your business, leading to missed opportunities or loss of value. Professional brokers use market data and business valuation methods to help set a realistic price that will attract buyers.
4. Legal and Financial Complexity Selling a business involves a complex web of legal, financial, and tax considerations. Contracts, due diligence, and the negotiation process can be overwhelming, especially if you aren’t familiar with the intricacies of business sales. Without professional help, you risk making costly mistakes that could affect the final deal.
5. Emotional Attachment It’s natural to be emotionally attached to the business you’ve built, but this can cloud your judgement when it comes to selling. Having an external, objective advisor can help you make rational decisions and ensure you’re negotiating the best deal for the future of the business and yourself.
6. Confidentiality. It’s hard to maintain confidentiality when you’re selling your own business. Confidentiality for most business owners is paramount. It can have a serious impact on staff, clients and suppliers.

Why Choose New Zealand Business Brokers?

While it’s certainly possible to sell your business independently, the process can be far more challenging and risky without the right support and knowledge.

At New Zealand Business Brokers, we offer expert advice, marketing, and negotiation skills to ensure you get the best possible outcome when selling your business.

Here’s what we bring to the table:

• Professional Valuation Services: Ensure you price your business correctly and attract serious buyers.
• Wide Buyer Network: We have access to a pool of pre-qualified buyers actively looking for businesses like yours.
• Time-Saving: Let us handle the details so you can focus on running your business during the sale process.
• Expert Negotiation: Maximise your sale price with skilled negotiators who advocate for your best interests.
• Legal and Financial Guidance: We’ll help navigate the legal, financial, and tax complexities involved in selling a business.
• Confidentiality: All buyers are vetted and are required to sign a confidentiality agreement to provide added protection to ensure your staff, clients, and suppliers are not aware of the sale process until the right time.

Ready to Sell Your Business? Let Us Help You!

While selling your own business can be a viable option in some cases, the expertise, time-saving, and buyer access that a business broker provides can make the process significantly smoother and more profitable.

If you’re ready to take the next step in selling your business, contact New Zealand Business Brokers today. Our team of expert brokers are here to guide you through the sale process and ensure you achieve the best possible outcome.

Reach out today for a no-obligation consultation, and let us help you turn your business sale into a success!