I recently went out on a listing call and during the course of a presentation I mentioned to the seller that I co-broker with other business brokers. She told me that she had the business listed with another broker some months prior, and he also said that he co-brokered with other business brokers. However, when she went to look at her ad online on BizBen.com it said, "No" under co-brokering. I was shocked that a person in a trusted position, such as my own, would do that. Obviously, her business didn't sell or she wouldn't have been talking to me. I told her that I am very professional in the way that I handle all my listings and I suggested that she take a look at all my other listing to see how they were handled and advertised online.
I share her frustration. As a member of several professional Business Broker Associations, part of our pledge is to foster a spirit of co-operation in working with each other. Also by eliminating co-brokering, non cooperating brokers are eliminating 70% of the opportunity to find a viable buyer for that business being sold. We, as business brokers are doing a disservice to our sellers and to ourselves buy not co-brokering with other business brokers. What's worse, many sellers are unaware that's even an option. They often just assume that a broker will co-broker but all too often I see business brokers that feel that they have good shot of getting the commission on both sides so they close that door. Don't get me wrong, I also love to get the commission on both sides, and I do a fine job of being a dual agent, but I won't hinder my clients chance to sell just to line my pocket.
In regards to residential real estate agents, I personally don't co-broker with people who primarily sell houses for a living. I believe that selling businesses is much more litigious and complicated than selling houses and unless the other agent knows how to handle the sale of businesses, I don't want to put myself or my client in jeopardy. On the other hand there are many fine business brokers that are working out of real estate offices and they are more than capable of holding up their end of the deal.
If you are selling your business and you're in the process of choosing a broker or agent, take the time to really look at other listings this person has. Does it say, "yes" to co-brokering? Are the ads well written? I've seen some business for sale listing ads that are poorly written and sparse. They give the impression that not much attention or effort was put into the listing.
Like every industry, we have excellent professionals who take what they do very seriously and then we have people who are not working with their heart in what they do. It's your responsibility to try and find a business broker that you can connect with, that shares your work ethic and standards. We are out there you just have to look.
Contributor:
The Veld Group provides a refreshing approach to Business Brokerage, Mergers & Acquisitions and Business Consulting and Valuations. From Your Street to Wall Street, we cater to Main Street Businesses as well as more complex Strategic Firms and Start-Ups.
ServingSouthern California
Laundry consulting, due diligence, buyer representation: We preview laundries for you and evaluate them. 28 years laundry industry experience: buying, selling, valuing, retooling, analyzing, consulting services for laundry buyers and entrepreneurs in California. Contact us today about our services.
ServingSouthern California
Cheryl's a restaurant business broker, over 25 years in the bar and restaurant industry coupled with a J.D. Cheryl works tirelessly to create successful strategies and effective negotiations for those who wish to purchase a new or sell an existing bar, restaurant, cafe, or night club. 415-309-2722
ServingCity Of San Francisco
If your business involves alcoholic beverage sales, we can help. Obtaining a liquor license transfer or selling a business with a license in California does not have to be a frustrating and overwhelming process. We have procured thousands of licenses for our clients.
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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.
ServingSan Francisco Bay Area, North Bay, Central Valley
Laundry consulting, due diligence, buyer representation: We preview laundries for you and evaluate them. 28 years laundry industry experience: buying, selling, valuing, retooling, analyzing, consulting services for laundry buyers and entrepreneurs in California. Contact us today about our services.
ServingSouthern California
Financing a business purchase, or getting cash for a down payment can take many forms. Hopefully the options listed below will give you some ideas where you can find the money to buy a California business!
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Many Californians want to buy a coin laundry because it's a business that doesn't require full time owner attention and because, as an all cash business, the owner is always paid before the service is provided. But there are a few misconceptions about the business and a buyer should have the facts.
Laundromats and coin operated Laundromats are popular choices among business buyers as they often can be successfully run as an absentee run business. You need to be strategic about when you sell your Laundromat so you don't get taken to the cleaners by a buyer and so that you maximize your profits.
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