When selling your business, you want the right professional to help steer the sale and ensure everything goes off without a hitch. Normally, businesses would hire either a corporate advisor or a business broker. But aren’t they the same thing? Not exactly. While many functions and services may overlap, corporate advisors and business brokers differ. To find out more, keep reading.

What is a corporate advisor?

A lot of what a corporate advisor and business broker do overlaps. However, corporate advisors generally offer a more holistic approach. Also known as a lead advisor, a corporate advisor usually takes the lead on an entire transaction. Their transactions are also usually for larger businesses and corporations that require more resources and expertise to sell.

Their approach to selling a business would also be a lot more specific. Generally speaking, they would take a closer look at your business and how to market it, offering you a strategic sales plan, conducting analyses like EBITDA, and doing a valuation for your business. Their approach to sourcing clients is also different. Because corporate advisors usually work with corporations and other larger businesses, they may have a larger network of potential investors. This allows them to approach specific buyers they think would be a good fit for your business.

Why Would you hire a corporate advisor?

Looking at a corporate advisor, here are some reasons why you may want to hire one:

Better suited for mid to larger businesses

Corporate advisors are better equipped to handle larger and more complex business transactions, making them better suited to working with larger businesses. Their expertise ensures that larger, higher-value business transactions go smoothly.

Offer more strategic planning to improve business value

Upon inspecting your business’s financials and operations, a corporate advisor could provide a strategic plan to improve your business’s value and appeal before you take it to market. In addition to this, most corporate advisors also offer business valuation services.

Offer financial restructuring guidance to improve business value

In some cases, for a business to increase its value and appeal to potential investors, it needs to restructure its finances. Corporate restructuring can take time and must be done correctly to achieve the desired results. Corporate advisors can guide you through how to restructure your business effectively so it works in your favour when you want to sell.

More industry connections

As the top professionals in selling businesses, corporate advisors usually have larger networks of quality buyers to whom they can advertise your business. This may result in you getting a better-quality buyer in a shorter time.

Better suited to complex transactions, mergers and acquisitions

For businesses considering mergers or acquisitions, a corporate advisor can offer you valuable guidance in the process. During the transaction, they’ll ensure that everything runs smoothly, is compliant, and that the due diligence is thorough. Additionally, they’ll participate in structuring the deal, making it fair and beneficial for both parties.

Hiring a corporate advisor in Melbourne

Knowing what corporate advisors you can consult is essential for business owners. Corporate advisors in Melbourne, like those at Lloyd’s Corporate, are equipped with the right knowledge and experience to offer their professional services to businesses in and around Australia. As one of the leading corporate advisors in the country, Lloyd’s Corporate Advisors would be an invaluable resource if you’re restructuring or selling.

What is a Business broker?

Business brokers are often the go-to when business owners want to sell their business. This is one thing that overlaps with corporate advisors, as they can also assist in a business sale. The main role of a broker is to facilitate the essentials of a sale. For instance, they might do a financial analysis of your business, create a marketing plan, market your business to potential advisors, and facilitate the negotiations and closing of the deal. Generally, this approach works a bit better for smaller transactions and businesses. Unfortunately, it doesn’t always work for much larger transactions, which is where corporate advisors come in.

Why would you hire a business broker?

Here are a few reasons why you would hire a business broker:

Better for small to mid-sized businesses

Business brokers are usually well-equipped to handle business transactions for smaller to mid-sized businesses in a variety of industries. Their experience in handling these transactions ensures that business owners get the best possible deal they can without unnecessary complications.

Assist with marketing and attracting buyers

Most business brokers assist in creating a tailored marketing plan to attract buyers. They’ll use their own network of sources as well as post your sales on various marketing platforms to maximise your exposure.

Facilitate negotiations

When buyers make an offer, a business broker will act as an intermediary between you and them, negotiating the price for your business on your behalf with the aim to get you as close to the market value of your business as possible.

Cost-effective and generally straightforward

Usually, hiring a business broker to assist in selling your business is a more cost-effective option. While brokers do take between 5% to 10% commission on the total sale price of your business, they will free you up to invest your time into preparing the business for its sale, which can be important as it could increase your business’s appeal to others.

Motivated to close deals

Finally, because business brokers earn their commission if the business sells for a good price, their efforts and motives are directly aligned with yours. They want to sell your business sooner because it poses a financial benefit for them.

Final thoughts

Both corporate advisors and business brokers have their merit. Business brokers are great for dealing with the sale and transfer of assets in a business. However, if you need a more holistic approach, corporate advisors would be a better choice. Consider your needs and get in touch with either or sooner rather than later.