I want to list my business, but I’m not sure who I should list with. Should I choose my real estate agent or maybe a commercial agent since businesses are considered a commercial space?

The answer is neither. The professional you should employ when you want to sell your business is a business broker.

Why a business broker and not the other two? A business broker specializes in the buying and selling of businesses. They have the right tools and know-how to get your business from listing to closing. Sure, real estate and commercial agents are also professionals that help with sales, but they specialize in homes and property – not existing businesses. It would be like going to a plastic surgeon when you have the flu. Sure, the plastic surgeon is a doctor, but you are asking them to serve you outside of their area of expertise.

Here are some specific reasons why a business broker will serve you better as you try to sell your business:

A business broker has the right tools.

Real estate agents have the MLS and commercial agents have a system called Loopnet where they list and find properties for sale. Good business brokers have their own sites, networks of cooperating business brokers, direct marketing campaign systems they create for each business they list, databases of buyers and investors, and relationships with professionals like CPA’s and immigration attorneys who can bring in interested clients as buyers.

A business broker can market your business without breaching confidentiality.

Confidentiality is what protects your business from losses while it is for sale. It means that the only people who know your business is for sale are the people who need to. Prospective buyers must sign non-disclosure agreements before your business is disclosed, and a broker works hard to keep employees, vendors, and customers from finding out as well. Only a broker knows how to properly market your business without improper disclosures. Realtors and commercial agents do not appreciate the importance of confidentiality, and we have seen images of businesses end up on the MLS and employees find out because an agent brought in buyers at an inappropriate time. Use a broker instead to protect your business.

A business broker creates a unique marketing plan for your specific business which includes a professional marketing package.

Pictures, a paragraph and a P&L will not sell a business anymore. Real estate agents and commercial agents will not have the know-how to put together the best marketing package for your business. A great broker will put together  a marketing package that will include a complete financial recast along with a SWOT analysis, a complete business profile to give a buyer an idea of what is needed to run the business, owner and employee duties, history, projections, video, pictures, asset lists and so much more. A marketing package should typically start at a minimum of 10 pages for a very small business and can go to 20, 30, 40 and more pages.

If you have an agent or a broker who you think may not meet these criteria- ask for an existing listing to review, ask for proof of completed transactions, marketing methods, confidentiality forms, processes…if you get any hesitation you should find a better business broker to list you business with.

Are you looking to list your business and have questions about how we can meet the needs of your business with the right tools and the best marketing? Please leave us a comment or question here, and we will be happy to help you get your business SOLD.

Michael Monnot

941.518.7138
Mike@InfinityBusinessBrokers.com