 |
|
Guide to Business Brokers
An experienced broker can smooth the process of buying or selling a business
By John Fuller
|
|
Extremely
Useful
7.1
out of 10
|
|
| |
|
| |
Selling a business you've spent years to build or taking the huge risk of buying one will be the most important transaction you will ever make, so many choose to work with business brokers. The broker's fee is typically 5 percent to 10 percent of the purchase price, either paid by the buyer or the seller. If you're selling, the broker may also charge a retainer fee to cover costs associated with marketing the business. Unless you have extensive knowledge of the market and a lot of time to do the legwork, a broker may be your best bet. A broker will help: - Prescreen businesses for buyers. Brokers don't want to represent businesses that are overpriced or are reluctant to open their books.
- Cut through the mountains of paperwork (including everything from financing and escrow to licensing) associated with the sale of a business, saving both parties time and money and assuring the deal is carried out legally. Brokers serve as a go-between for the lawyers, CPAs, bankers and other agents needed to close the deal.
- Negotiate the deal, making the most stressful (and important) part of the process smoother and ensuring a fair price.
- Guide the buyer to the right business that matches his background and goals and provide advice throughout every step of the process.
Action Steps
The best contacts and resources to help you get it done
 Be an educated shopper
Make sure you're working with a reputable, experienced broker who will guide you to the business that is right for you.
I recommend: Inc.com has a list of the seven essential questions to ask when choosing a business broker and other information on brokers.
Cast a wide net
Working with a network of brokers allows you to check out more business in a wider geographic area or reach more potential buyers. The best business for you to buy, or the buyer who will give you the best deal, may be a time zone away.
I recommend: Organizations such as the Brokers Network Group, a network of independent brokers throughout the U.S. and Canada, provide buyers and sellers with more options then they would have had working with one local broker.
Run the numbers
How much is the business you're buying or selling really worth?
I recommend: Inexpensive software packages, such as BizPricer, can give you a fair-market appraisal to get a second opinion after talking to a broker.
It pays to advertise
In addition to working with a broker, or if you want to go it alone initially and hire a broker later on in the process, placing an online ad for your business may be the way to go.
I recommend: Business Broker.net enables owners to place ads starting at $50 a month and buyers can use the site for free. The site also offers franchise locations for sale and links to brokers and other services.
Tips & Tactics
Helpful advice for making the most of this Guide
- Sealing the deal: To save some money on fees, you may want to hire a broker just to handle the negotiations.
- Early innings: If you're serious about buying a business, make a reasonable offer early on because the seller will only allow the broker to show you the company's books after getting an offer. You can always withdraw the offer later.
- Do your homework: Talk to other people who've worked with brokers as well as your lawyer, CPA and chamber of commerce to get a list of good, trustworthy brokers.
The official source of Business Brokers is the Business Brokerages page at Business.com
Featured Vendors
Business Brokerages ResourceFind Business Brokerages. Search listings and reviews of retailers, specialists and services in your local area now.
JustClickLocal.com Manhattan Office, Loft & Showroom SpaceFind Manhattan office space, lofts or showrooms for rent. Thousands of listings: Lower Manhattan, Chelsea, Grand Central, Garment District.
www.nyc-officespace-leader.com Mailing Lists-free QuotesFree Quotes from Multiple Brokers Compare & Save - $300 min order.
Mailing_lists.BuyerZone.com Broker BusinessLooking for a Broker Business? Search listings and reviews of providers and specialists in your local area today.
JustClickLocal.com
 Recommended Solution Providers | Back to top |
|
Search for established business for sale or post ad to sell a business.
Classified advertising database of businesses for sale and business brokers.
Mergers and acquisitions advisory company.
Consulting brokerage for small and mid size businesses.
Marketplace of businesses for sale and resources for buying a business or selling a business online.
Business brokerage network with affiliate broker offices nationwide.
Online database and resource center for buyers, sellers, brokers and advisors providing services to facilitate transactions.
Consulting and matching service for small business buyers and sellers.
Business broker directory with information and advice for sellers.
Tools and resources including articles, a valuation guide, forms and contracts and a broker directory.
|
|
 Best Sites to Learn More | Back to top |
|
How-to guides, articles, columns, expert advice, tools and recommended resources.
Articles and tips to finding a broker for small businesses.
How-to guide with tips for choosing a broker to sell a business.
Guides for helping business buyers and sellers through the business exchange process.
International non-profit association for people and firms engaged in business brokerage and mergers and acquisitions with a broker directory.
International organization of merger and acquisition intermediaries representing the middle market.
Global partnership of middle market merger and acquisition advisory firms.
Monthly newsletter covering issues, trends and strategies for buyers and sellers of middle market companies.
Articles and research resources on brokers, valuation and negotiating.
Articles and resources for business buyers and sellers with a broker directory.
Global mergers and acquisitions information provider.
|
|
 Best Blogs and Forums | Back to top |
|
Forums on buying a business, selling a business and business brokerages.
Observations, tips, news and case studies on selling or buying a small business for business buyers, owners, advisors, brokers and agents.
Blog entries by companies looking for businesses to purchase and corporate executives looking for businesses to own and operate, sponsored by the representative brokerage.
Information about buying and selling a business, business news and views from professionals.
|
|
 Is any content on this page inappropriate? To let us know, please click here.
|
|
|
 |
|
Ads by Google
200 New Listings Daily. Buy or Sell California Businesses.
Open Your Own Business Or Franchise Now You Can For As Little As $2500.
Don't Waste Time, Start Now, Use 3 Easy Steps With This Home Business
Don't buy a franchise - Sell them! Training/listings/leads provided.
|
Related Resources from Business.com
Comments
