If you have finally decided to let go of your hospitality business, one of the first steps involves knowing the market value of your business. You can hire professionals such as accountants to evaluate you hospitality business then proceed to the next step which is finding the right buyer then selling it. Voila! The transaction takes place and you get the money while the buyer happily runs a new business. Easy right? Wrong. We wished this was how smooth it went when it comes to selling a hospitality business but unfortunately, it’s not. It involves more than a simple agreement between two parties. If you want a successful sale, a middleman is necessary to keep everything in check.
Hiring a broker
Brokers can help you sell your business easier and faster, but brokers also have categories– the specialised broker and the generalist broker. Both have pros and cons, but it’s still up to the business owner which of these two types he/she would choose.
Learn more about the two types of brokers: Selling Your Business with a Specialist vs. a Generalist
If you need more information about these two types, then we suggest that you continue reading. The difference between the two types of brokers is that a specialised broker is someone who is an expert at selling something from a specific industry while a generalist is a jack-of-all-trades.
Generalist a.k.a. Jack-of-all-trades
As a jack of all trades, a Generalist broker can adapt to any industry. He/she has sold real estate properties to stocks. One positive side about this type of broker is that they have an endless list of possible buyers since they have a broader audience based on their work experience. Another advantage would be their ability easily adapt to any industry so whatever business it is you’re trying to sell, this type of broker can easily familiarise with it.
Of course, there are disadvantages in hiring a generalist broker. First, this type of broker may know something about what you’re selling and what industry it is from but his/her knowledge is not as in-depth as that of a specialised broker. Another “flaw” of a generalist broker is that though they may have a longer list of potential buyers, these “buyers” are not all qualified to buy your business. This broker might need to sift through the entire list before he can come up with a database of “quality” buyers and this may take some time.
Specialised a.k.a. Master of One
The Specialised brokers, on the other hand, are experts on a specific industry. They’ll know what to use as leverage in selling your business plus they know the right people plus they would know the right advertising platforms to use for your business.
There are brokerage firms that specialise in businesses. Redmako Business Sales is an example of this type of brokerage firm. With a focus on hospitality businesses, Redmako has specialised hospitality brokers which have been in this industry for more than a decade. Specialised brokers such as this, have a filtered database of qualified buyers ready to be contacted. This saves you time and energy plus this can also get you the best value for your business.
There’s still an ongoing debate between the two and both have their advantages and disadvantages. So we suggest weighing the pros and cons before hiring a broker.