How Internet Business Brokers Add Value for Sellers

Some online business owners who are looking to sell may be reluctant to pay an internet business broker to sell their business but if you ask any seller that sold their business with the assistance of a broker such as W3 Business Advisors, they will unanimously agree that they are glad they did.

A recent study surveyed 85 business owners who sold their businesses with the assistance of an advisory firm and 100% of the respondents said that the advisor added value to the transaction, with 69% saying the value-added was “significant”. Every transaction is unique and complex, and most sellers do not have experience with transactions, many do not truly know the value of their business, and it is nearly impossible to balance the discretionary demands and time constraints of a sale while still running their online business. Professional website brokerages such as W3 have the experience and to manage the deal process, find the right buyers, obtain the most lucrative price, allowing the seller to continue to operate their business at an optimum level.

The study also analyzed what aspects of the advisor’s role were the most helpful to the sellers and asked them to rank the following functions from most to least significant:

  1. Finding buyers
  2. Negotiating the deal
  3. Managing the sale process
  4. Adding credibility to the seller
  5. Preparing the company for sale
  6. Educating and coaching the seller
  7. Structuring the transaction
  8. Enabling the seller to run the business

While finding buyers might appear to be the most important function of an advisor’s role, surprisingly, it was the lowest ranked of all. Managing the process was actually ranked as the most important of the many roles of an advisor. As you can see from the results below, the core services that an advisor can offer are the most important to maximize value. Those services include coming up with an executing a plan, preparing the prospectus and teasers, dealing with potential buyers in a discretionary manner, managing the data room, negotiating key terms of the transaction, just to name a few. One respondent stated that “representation definitely got us a better price and more favorable terms”.

how internet business broker adds value for sellers

Additionally, 84% of the business sellers polled said that their final sale price was equal to or higher than the initial evaluation provided by the advisor. The increased purchase price certainly makes the commission charged by a business broker well worth their services.

An experienced and professional website brokerage firm such as W3 Business Advisors will certainly more than add value to the sale of your online business. So, what are you waiting for? Give us a call today!