Selling My Business: How Many Business Brokers Should I Interview?


Interviewing Business Brokers

How many business brokers should I interview prior to selecting one when selling my business?

Choosing a business broker to sell your business can be crucial to the success of it selling. A broker who you have an exclusive listing agreement with, which I recommend vs. open listing, will essentially be your partner during the listing term in getting your business sold. How many you interview is entirely up to you, but my suggestion is about 3. You'll probably find that you call the people who are actively marketing towards you and your business on a month-to-month basis, either by flyer, postcard, or door to door solicitation. The brokers who are actively looking for new business are typically the ones who are doing business. I wouldn’t interview too many agents, because a good one may get lost in the search, and outliers on price and terms may be become less apparent, because inexperienced agents are just telling you what you want to hear just to get your business, as opposed to more experienced agents who are apt to tell you the truth.

Referrals - Let's face it, everyone has a friend or family member who has a real estate license. If you have a friend who sells homes, but swears that they can also sell businesses, but really don't, then interviewing them, but also interviewing 2 or more business brokers who actually specialize in selling businesses will help illustrate the skills involved in getting a business sold, and the techniques involved in selling homes vs. business are not necessarily transferable.

Style - Every business broker has a different style, and it's important that you as the seller feel comfortable with who ever you choose to work with. If the seller and broker feel that they are at odds with one another than it makes the selling process much more difficult. Trust, that the broker is doing you right, and them trusting that you are honest with your books/records or that you are not trying to sell the business behind their back is extremely important.

Price/Terms/Commission - These three things are the most common that are brought up when a seller interviews a broker. How much is my business worth? How long is the listing contract? What is your commission? All brokers can negotiate all three with their potential seller. When a seller interviews 3-4 quality business brokers, they should notice a similarity with all three, and be able to immediately spot an outlier. Typically, experienced business brokers will able to give you a ballpark figure of a selling price, tell you the industry average on listing term agreements, and roughly the same on commission. If you interview too many business brokers, it will be more difficult to spot outliers, because like anything, something that is too good to be true, typically is.

One other thing, because business brokers take in a higher volume of listings, than say a real estate agent who sells homes, not only are you interviewing the business broker, they are also interviewing you, because they work on commission and have to determine, are you and your business worth the out of pocket money and time that will be spent until the business is sold? I would suggest a seller be prepared with necessary documentation when meeting with the broker, just as much as you expect the broker to be prepared on how to show how they get businesses sold.

Categories: BizBen Blog Contributor, Business Broker Information, How To Sell A Business, Selling A Business

Contributor:

Joe Ranieri
Areas Served: Orange, Los Angeles County Areas
Phone:  714-292-5448 Cell, 714-292-5448 Text
Having owned retail/restaurant businesses for over 20 years, my interest turned to selling businesses rather than owning them. I specialize in LA & Orange County restaurants, fast food independents and chains, bars, & liquor stores. Call 714-292-5448 Cell/Text.






  Helpful Resources To Assist In Selling And Buying California Businesses
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.

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.

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.

Rick Carlson, Business Broker - Southern California

You Will Never Feel Lost In The Shuffle. Many Brokers Simply Send Out An NDA And That's The End Of Communication. All Buyers Receive A Personal Meeting With An Ace Acquisition Specialist So They Can Recommend The Perfect Business For You. Phone Rick direct at 800-985-4939.

Mike Hurrell, Broker: Laundry Specialist - Southern California

Providencia Properties Inc in association with Golden State Laundry Systems is a full service Coin Laundry Real Estate Broker. At GSLS you will receive personalized attention from our professional staff of coin laundry experts. To sell or buy a Southern CA laundromat call Mike at 310-223-2240 X209.

William Park, Business Broker: Southern California

Highest Volume Broker in California, Simply Check our HUNDREDS of Listings! Over 25 Associates, Speaking Dozen Languages, Helping Buyers and Sellers of Small Business since 1982, Centrally Located between Los Angeles and Orange Counties, while Riverside & San Bernardino Counties are Very Accessible.

Joanne Weber, Broker: Preschool Specialist, Southern California

The Ryan Craig Company is in its 46th year as the recognized expert in Southern California, dealing exclusively in the sale of preschools, Montessori schools, day care centers, and private schools. Our extensive list of references speaks for itself. Phone Joanne at 818-760-3684 for more info.


  Related Articles, Events, Blog Posts, Discussions, Videos, Interviews
Can A Business Seller Back Out Of Escrow If They Simply Change Their Mind?

Can a seller of a small business back out of an ongoing escrow? Probably, yes, it all depends how far along the escrow is, which will dictate how messy things will get for both owner & buyer. Joe Ranieri (Southern California Business Broker) gives his feedback with others on this BizBen Discussion.

Broker Explains Allocation Of The Purchase Price When Selling A Business

There are a handful of key asset categories in allocating or breaking down the purchase price allocation of a California business sale. Allocation is required to complete the transaction. In this blog post Lee Petsas (Orange County Business Broker) at 714-363-0440 covers asset allocation classes.

Business Purchase Financing Expert Peter Siegel - Tips On Proving Cash Flow

What are the actual "provable" adjusted net earnings (cash flow) of a small to mid-sized business being purchased? Buyers need to look carefully at all financial info for the "real" adjusted net income/cash flow. Peter Siegel, MBA (BizBen ProBuy & ProSell Lead Facilitator) at 925-785-3118 explains.

BizBen Podcast & Webinar: Business Purchase Financing And SBA Loan Options

Ever wonder what is involved in obtaining business purchase financing to buy a business or franchise? Peter Siegel, MBA who has over 25 years advising on all types of financing for business buyers in this BizBen Podcast & Webinar - SBA loans, Non-SBA Financing, Alternative Financing Sources.

Should You Pay Your Business Broker An Upfront Fee To Sell Your Business?

Are up front fees worth it? In this BizBen Blog post Brian Loring (Business Broker) discusses the pros and cons of owners of small businesses paying business brokers and agents an upfront fee for their services. There are many sides and opinions expressed on this topic by both sellers & brokers!

Attorney Specialist Shares Escrow Instruction Tips When Buying A Business

Once you have successfully negotiated the Asset Purchase Agreement ("APA") for your acquisition it's natural to relax a little and let your guard down. Attorney Specialist Mark Chatow discusses what business buyers should look out for when opening escrow and getting escrow instruction in place.

Deposits With Business Purchase Agreements: How Much? Structure? Refundable?

Purchase agreements when buying or selling a small business can be tricky. A top Southern CA Business Broker discusses this topic including multiple strategies regarding deposits with business purchase agreements. Lee Petsas (Orange County Business Broker) at 714-363-044 contributes this blog post

Millennial Buyers: What Are They Seeking When Buying A Small Business?

First, we must define, who are the Millennials? The exact years are up for debate, but Millennials were born during approximately between 1981-1986, which today would be between 22 and 37 years of age. Joe Ranieri looks at what these buyers are looking for and what qualities they seek in businesses.


Escrow Services From Helen Yoo New Century Escrow
Escrow Town And Country Southern California
Bill Ziprick Legal Advise
Escrow Services Diane Boudreau-Tschetter
Facebook
Twitter
Linkedin
Vlogs and Podcasts
Advertise On BizBen
BizBen ProBuy Program
BizBen ProSell Program
New Postings Reports On BizBen Sign Up
BizBen Blogs And Articles
Business For Sale California Stats

BizBen - Where California Deals Get Done! 888-212-4747
7172 Regional Street #364 · Dublin, CA. 94568
BizBen · Copyright © 1994 - 2020, All Rights Reserved



Clost Login


Please confirm your registration by clicking the link we've sent to .

If you can't see it, please check your junk mail folder.

If you have any problems registering, or need assistance with your new BizBen User Account please phone BizBen Customer Support at 888-212-4747.



First Name:*
Last Name:*
Email Address:*
Confirm Email:*
Create Password:*
Confirm Password:*
Phone:
(   
 


You Are A:
Individual
 
Intermediary
 

Email Address:
Password:
 

500 New & Refreshed Detailed Postings Daily
Over 2500 Resources Available On BizBen
Since 1994. Where California Deals Get Done!
Purchase A Small Business With Limited Or No Cash: Financing Tips For Bu...
Read More News
Business Seller Mistakes Near The Close Of Escrow Can Tank A Deal To Sel...
Read More News