The city of Vancouver is known for being home to a dynamic economy that is mostly supported by small and medium-sized businesses. A 2013 report revealed that approximately 98 per cent of all local companies are small businesses, which means that Vancouver has one of the country's highest per capita rates of small businesses.
High business birth rates are usually linked to an increased number of buy-sell activity. If you are a business owner looking to sell your company or an entrepreneur interested in buying a successful business in Vancouver, you should consider using the services of a professional business broker. Here are five reasons why doing so is a good idea:
Higher Success Rates
Whether you are a buyer or a seller, you will want to close a deal as soon as it is realistically possible. However, for-sale-by-owner transactions have a lower listing to closing rate than those managed by business brokers, where success rates range between 25 and 70 per cent depending on how well established a broker is. Qualified brokers have access to a buyer/seller database and to a broad-ranging network of contacts, so your listing stands better chances of reaching the right seller/buyer.
Brokers have knowledge of valuation techniques, so they can ensure that a business value is set at optimal levels and at a fair price that takes into account the transaction's financial and legal implications.
Wider Range of Financing Options
If you're looking to purchase a business in Vancouver, choosing a local broker is an effective way of securing a solid financing strategy. Brokers can help you understand the options available and their advice is an invaluable tool in this essential aspect of the business buying process.
Buying or selling a business always entails a certain level of risk. However, risks can be effectively minimised by working with professional brokers, as their detailed knowledge of the local market is used to point you in the right direction.
Doing research into the current market conditions, financing options, and risk levels is time consuming and can be particularly daunting if this is your first time buying or selling a business. Choosing an experienced broker like Vancouver Business Brokers will save you time and effort in this respect.
What are the benefits of using a broker to sell my business?, IBBA.org
Small business accounts for 98% of all B.C. businesses, VanCityBiizz.com