You may have asked how do I sell my business and who do I list it with: a realtor, commercial agent or a business broker?
The best analogy I can assimilate this to is that you would not go to the optometrist to fix a tooth. Although both are Dr’s they have different specialties as well as different tools, much like a business broker has for selling your business.
A realtor has the MLS and a commercial realtor has Loopnet. I have an optimized site to buy and sell a business, subscriptions to many business for sale sites, nearly 900 cooperating business brokers in my network, a direct marketing campaign specific to your business and access to all of the information to make it successful, I have a database of buyers, investors, CPA’s, immigration attorneys and lenders to distribute the basic listing information for all of their interested clients.
Unfortunately I have seen confidentiality breached many times and many different ways. I have seen pictures of the business in the MLS, the name in the description and sometimes a note to not bother the employees. Last week I was in a meeting with my buyers and the listing agent was a realtor and he exposed the business to an employee. This can create a loss of employees, clients may not come back and I have even seen receivables not be paid. I will confidentially market the business, it will not be divulged to anyone that we have not spoken to and interviewed, all clients will also sign confidentiality agreements and information will not be shared with employees, vendors, competitors or anyone we feel will not have the ability to purchase your business.
#3 Professional Marketing Package
A pictures, paragraph and a P&L will not sell a business anymore. Rarely do I receive a professional marketing package from another business broker but have never received one from a realtor or a commercial agent. My marketing package 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, owners and employee duties, history, projections, video, pictures, asset lists and so much more. My marketing packages will typically start at a minimum of 10 pages for a very small business and will go to 20, 30, 40 and more pages.
If there are any additional questions ask for an existing listing to review, ask for proof of completed transaction, marketing methods, confidentiality forms, processes…if you receive any hesitation you should not be dealing with that business broker.
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