» The Truth About Selling Your Business Yourself – Part 5

What Business Broker's Don't Want You to Know
Categories: Sell a Business

Truth #5: You Can Learn the Process

Although selling a business is complex, as a business owner, it is a process and you can learn it with some guidance.

The Business Selling Process

The process to sell a business is the following:

  • Prepare the Business to sell
    • Determine the listing price (via a valuation)
    • Determine the terms you are offering (from Deal Structure Scenario Report)
    • Create the Listing Package
    • Post Blind Listings
    • Qualify buyer and send a non-disclosure agreement (NDA)
    • Present the business package to qualified buyers who signed a NDA
    • Review all offers / Letters of Intent (LOI) with an attorney / accountant
    • Accept an offer / LOI
    • Provide information per due diligence requests
    • Go to closing and sell the business

 Hiring  Broker

Certainly hiring a broker is a “done for you” service and you will pay a percent of your sale price for this service. This can range from 9% up to 12% depending on the size of your business.

Hiring Broker vs. For Sale By Owner Consulting

If you were looking to sell your business for $900,000, here is the difference between a “done for you” service and For Sale By Owner Consulting:

  • Business broker: 10% commission = $90,000
  • For Sale by Owner Consulting: $6,500

 The Truth About Selling Your Business

TRUTH: A business broker will spend 250-300 hours working to sell your business and they have vast networks and resources to find buyers that you might not have. This comes at a cost. 

TRUTH: At RPR Associates our experienced business brokers and business transfer consultants can provide the insight and guidance you need to sell your business yourself at a flat fee regardless of the price of your business and can provide valuation services, and counter offer analysis services based on data and facts .

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Posted on Jan 23, 2014

Contact Info – David Bandars

 12110 Port Grace Blvd. #201, LaVista, NE 68128