What is a Business Broker?
A business broker is similar to a real estate agent. Business brokers provide the match making service of bringing together buyers and sellers of businesses. A business broker who spends all their time selling businesses will add more value to the sales transaction than a part-time agent. A full-time business broker can not only bring in a network of contacts but has an understanding of the principles of business valuation. Selling your small business for the highest price is the result of years of dedication and persistence. Finding buyers for your business sale can be difficult if you aren’t in a hot industry or lack unsolicited offers. An option to gain access to a larger pool of buyers is to consider using a business broker. The right business broker can help your small business find a source of potential buyers and aid in the sale of your company. Selling your business is a complex time consuming matter that can be stressful and emotionally draining to an owner who is also trying to run their business.
You can be sure you will be treated professionally and fairly, because Horizon Business Brokers abide by the Business Broker Code of Ethics.
1. Keep a Secret: Avoid losing key staff and suppliers by keeping your business sale a secret. The selling of your small business is a highly confidential matter. A business broker should ensure all safeguards are in place to protect your company. One word to your suppliers, employees, or customers that you are selling the company can have repercussions on your business operations.
2. Deliver a Marketing Plan: Selling your business is all about marketing. Properly positioning the sale of your company to attract and motivate as many buyers as possible should be your goal.
3. Allow You to Avoid the Pressure: A Broker should assist you and let you take the time to learn and clarify all uncertainties to avoid the pressure you may feel in a complex transaction.
4. Keep Costs Low with No Heavy Front Fee: A business broker fee ranges from 10 to 15% commission of the sale price OR a flat fee of $10-$15,000 if the business’ sale price is less than $100-$150,000. Avoid any broker asking you for a large, upfront fee to assess your business value or start an application process.