Should You Sell a Business Privately Or Use a Broker

Should You Sell a Business Privately Or Use a Broker



This article on businesses for sale by owner can be from the perspective of a business owner or from the perspective of a business buyer. A business can be for sale by the owner or he can make arrangements with a broker to sell it. Business opportunities can come in several ways and has been enumerated in the second to last paragraph.

If you are a business owner and decide to sell your business yourself then the first thing you have to do is to find out the value of your business. This can be done by ascertaining the price that similar businesses have fetched, over a period, say, in the last five years. The research for this can be done on the Internet and also by talking with people in a similar business. There are also trade magazines which can be used to gather information.

You also need to decide whether you will handle all the legal matters pertaining to the sale yourself or whether you need to hire an attorney. If you decide to hire an attorney you can decide the scope of his work. The fees can be determined as an amount for the job from start to finish or you and the attorney may decide that you will be billed on an hourly basis. You should in that case ascertain an estimate from the attorney and perhaps also have the phrase not to exceed in your contract with the attorney.

After you have ascertained the value of your business you need to advertise it in the proper media. Depending on what business it is, a certain medium may be more conducive for this purpose. For example, certain businesses might advertise their sale in the local newspaper or in a magazine whilst others may advertise the sale on the Internet.

After you have advertised the business in the proper medium/media you will receive offers. You will need to respond to these offers. Some offers may be rejected right away as they are too low or are conditional.

When you are satisfied with an offer and decide to sell the business you will receive payment and go through the process of transferring the ownership of the business to the buyer. You may also decide the payment method which is most beneficial to you from a tax perspective.

Business opportunities can be found in your neighborhood, on the Internet and in your local newspapers. It is prudent to buy a business which you know something about.

Some business opportunities come in the form of franchises. To buy a franchise may be the easiest way to run your own business. When you buy a franchise you will receive training or guidelines on how to run it. Examples of franchises are Subway, MacDonald and so on.

While a business is for sale by owner saves the owner from paying a commission to a broker it may also not bring in the best offers. A broker is usually an experienced knowledgeable professional and if the broker works hard on behalf of the owner he will be able to find several buyers and thus several offers. The owner needs just one offer to make the sale provided it is a good offer and meets his expectations. Business opportunities are available to buy a business from an owner or through a broker or when you buy a franchise.

This business for sale by owner article was produced for http://www.business-trader.com.au.

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