Open Listings vs. Exclusive Listings


a href="http://www.bizben.com/business-brokers/27015.php">Joe Robertson, a principal and business broker with Southern California Business Brokers has written a great article on the representation differences business owners can expect from business brokers listing their business. Some exerpts from this article include:

When it comes to selling your business, an exclusive listing with a business broker provides the greatest likelihood of success for both the seller and the broker.

Only a limited number of business brokers will accept an open listing, and typically, a broker that chooses to work with such a limited commitment from a seller will NOT provide the greatest amount of effort to sell the business.  Likewise, the commitment level of the seller is questionable.  To understand this point in more detail, let's start with a definition of the two types of listings.

Open Listing:

An Open Listing is an authorization to sell a business or property.  It may be given to several brokers concurrently or the business may be sold by the owner himself.  There is usually no time limit associated with this type of listing.  If the owner sells the property through his own efforts, he is not responsible to pay commissions to any of the listing brokers.  An open listing may be canceled by either party at any time.

Exclusive Right-to-Sell Listing:

The Exclusive Right-to-Sell listing is the most common type of listing.  It provides one broker the right to sell the business exclusively.  This listing entitles the broker to commissions on the sale during the life of the listing agreement, even if the owner himself sells the business.  This type of listing runs for a specific period of time, usually six months.  The agreement may only be cancelled by the listing broker during that period.

Initially, the open listing may sound like a great way to maintain more options; however, typically this type of listing agreement is a waste of time for both the seller and the broker.  Here are a few reasons why this agreement can be counter-productive.

Categories: Selling A Business







  Helpful Resources To Assist In Selling And Buying California Businesses
Diane Boudreau-Tschetter: Escrow & Bulk Sale Services - CA

California Business Escrow, Inc. is a full service independent escrow company serving all of California and has expertise in a wide range of escrows. Our team prides itself on providing an exceptional escrow experience. For more info phone Diane Boudreau-Tschetter at 888-383-3331 or 209-838-1100.

William F. Ziprick, Attorney: Legal Services For Buyers And Sellers

Through creative problem solving, attention to detail, accessibility, & understanding that unnecessary delay is often a deal killer, I work closely with my clients and other professionals to consistently achieve a high rate of closings. Office: 909-255-8353, Cell: 509-951-7230.

Shalonda Chappel: Escrow & Bulk Sale Services - Southern California

Escrow services to brokers/agents, sellers, & buyers. Established 43 years. Extraordinary service. Experienced with handling difficult transactions. One stop for all your escrow needs: Bulk sales, lien searches, UCC searches, liquor license transfers, publishing & recording services. 951-808-3972.

Helen Yoo, New Century Escrow - Escrow Services In Southern California

New Century Escrow, Inc. is a fully licensed & bonded independent escrow company. Over 20 years combined experience in handling bulk escrow transactions. Multi-lingual staff that speaks your language, including Korean, Chinese, Vietnamese. Call Helen Yoo direct at 626-890-1151.

Brad Steinberg, Business Broker: Laundromat Specialist

PWS is the leading laundromat broker in California. Since 1968 PWS has brokered over 2,500 laundromat sales. With over 90 employees dedicated to the coin laundry industry, PWS has 18 licensed agents, a 3 person in-house finance department, 10 service technicians and a 20 person parts department.

Janet Carrera: Escrow & Bulk Sale Service - SF Bay Area

Redwood Escrow Services, Inc. is a full service, licensed independent escrow company. We are EAFC Fidelity bonded, fully insured & licensed with the Department of Corporations. Committed to offering our clients the most comprehensive variety of escrow services available. Phone Janet at 510-247-0741.

Elizabeth McGovern: Escrow Services - San Francisco Bay Area

McGovern Escrow Services, Inc., is a leading independent escrow company. We are a trusted partner with our clients, assisting them through the tangled bulk sale & liquor license transfer process. We provide attentive, quality & innovative customer service. Phone Elizabeth McGovern at 415-735-3645.


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