Are business brokers worth it?

As business brokers, we certainly understand a potential client's rationale for questioning whether hiring a broker makes sense vs. just selling the business themselves. Afterall, why would anyone opt to pay a fee, often 10% or possibly even slightly higher depending on the size of the business (under $1M), unless you have to? The short answer is that most sellers will need a broker in order to complete a transaction. And even if a seller is able to find a buyer for their own business, it's entirely possible that they will end up selling for a lower price and less favorable terms than if they had used a broker to market and sell their business.

Good brokers are worth their weight in gold because-

• they typically have databases with thousands of buyers/ sellers.

• they have pre-existing relationships with some of these buyers.

• they market and advertise their listings to generate in-bound inquiries.

• they know how to negotiate with buyers to get as much money as possible.

• they can help you navigate the often complex acquisition process increasing the likelihood of a successful exit.

• they focus on selling your business while you focus on running the business.

• they charge modest fees, typically below 12%, with the percentage getting lower as the deal gets larger.

• they properly market your business opportunity in a way that drives demand thus increasing the exit price of the business.

Although brokers certainly do have a cost, overall they are worth every penny for the value they provide. The competitive environment alone that brokers can create is the perfect example of why hiring a broker is so essential to a well planned exit strategy. For more information on how we can help value and then sell your business, schedule a call with one of our expert brokers. We never charge any upfront fees, so feel free to book a call with one of our experienced brokers to learn about how we can get the highest price for your business.