9/14/05

Selling Without A Business Broker & Setting A Price To Sell


I am selling my business because I am want to relocate, maybe back to the East Coast where my wife and I are from. I decided on selling the business myself versus using a broker because I could not justify the 10% most brokers were asking for. It is not like they have a Multiple Listing service, so basically I felt I could do everything they could. To set the price I asked several of industry contacts (both marketing and real estate), other business owners (who recently sold their business or were in the process of selling) and business brokers. All of these people have seen business recently and are aware of the approximate multiple of net profit for setting the price.


Comments & Advice From Peter:

Since you have been in the industry before you were in this business and because you have the time to take calls from buyers and show your business then not using a broker to sell your business yourself. However I usually suggest utilizing a professional business broker to sell a business if you do not have the time or expertise in the selling process. Be careful in setting your price yourself, it may be advisable to get a 3rd party professional business valuation to realistically see what your business is actualy worth. Just remember that if there is going to be financing involved for the purchase of your business the price may deviate from a standard business valuation since lenders look at adjusted net income and pricing differently than business owners and business brokers.
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Posted at 11:45 pm in
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