Selling your business alone is no easy feat, but with the right amount of research and an eager commitment to the process, you can sell your small business without a broker.
In this short guide, you’ll learn how to find buyers, navigate your sale, and save significantly on the costs of your business transfer.
But first…
Why would do other owners work with a broker?
Many owners who work with brokers are first-time sellers. They want a pro on their team who will give them the guidance and expertise they need to valuate and market their business, connect them with a pool of qualified buyers, and navigate the finer points of closing their deal.
Others who use brokers do so because their businesses are complex, and they need some help calculating a value that isn’t so straightforward and marketing a business that may be a bit unique or seem overwhelming.
Still others work with a broker because they can’t afford to put in the time that’s required to navigate the ins and outs of selling a business.
For lots of owners, working with a broker is a smart move. But for savvy owners who are willing to devote time and energy to the process, selling a business without a broker is a completely viable option.
Can I really sell my business without a broker?
You can accomplish every task that a broker performs, though many of the steps will require a great deal of time and research, especially for first-time sellers.
You can choose to sell your business entirely on your own, as many owners do. Or, you could act as a foreman to your sale, contracting out specific tasks for others to perform and choosing to take on the parts of the process that fit into your own unique skillset.
Is it a smart call to sell my small business without a broker?
It depends. In some circumstances, selling without a broker makes more sense than employing one. This is true when:
- You have a plan to sell to someone you already know.
- You have bought and sold numerous businesses and know the ins and outs of the business transfer process.
- Your business is too small to bear the burden of a broker’s costs.
- You have more expertise about the uniqueness and intricacies of your business or industry than a broker could ever fairly represent.
It can make sense to sell without a broker in other contexts, too. To determine if it’s the right approach for you, you’ll need to decide how much time you can invest in the process, whether you have or are willing to attain the knowledge that’s required to handle the marketing and complexities of a sale, and whether the costs you’ll save—which are, indeed, sizable—are worth the potential headaches that could occur at every phase of your journey.
How much can I save if I sell my small business without a broker?
Broker fees vary, but many charge a 10-15% commission on the total price of the sale. Others ask for a non-refundable fee or retainer that can range from $10,000-$50,000, based on the listing price of your business.
I’m ready to take this on. How do I get started?
There are ten steps you can start working on today to prepare for your sale:
1 | Gather your financials, including tax returns, profit-and-loss statements, bank statements, capital commitments, and payroll information. Then, meet with a reputable accountant who can help you assess them and prepare clean financial statements. Be sure to read our article, How to Find an Accountant Who Can Help You Sell Your Business, before getting started. How to Find an Accountant Who Can Help You to Sell Your Business An accountant can play an important role in helping you sell your business. They can organize your company’s financials and tax returns, ensure that your business demonstrates its full earning power, and construct sound forecasts that’ll attract potential buyers. Some business owners choose to take on this work alone, in part to avoid […] www.owneractions.com .Need help finding an accountant with this skillset? Here are a few firms to consider:
Reconciled is an award-winning organization and one of the fastest-growing accounting firms in the country. Their team of entrepreneurship gurus, e-commerce pros, and tech-loving cloud accounting specialists look at your business holistically and help you analyze your spending, measure costs, and find opportunities to enhance margin and profitability, along with taking on your day-to-day bookkeeping. Want to learn more? Click the connect button below for an introduction. With Xendoo, you can access a dedicated team of expert CPAs and accountants who provide monthly bookkeeping, tax preparation and filing, and tax consulting, three services that will help you stay on top of all your financial needs. Their team can also help you with your personal tax returns, too. You can explore their plans with totally transparent pricing by following the link below, and for a limited time, you can try their online bookkeeping service free for one month. Restrictions may apply. See Xendoo’s site for details. Business owners love 1-800Accountant. Here’s why. First, the service pairs you with a CPA who is an expert in your state and industry and can answer the tough questions you have about your business. Second, while many others charge by the hour, or worse, by minute, 1-800Accountant sets you up with an affordable, flat-rate pricing plan so you always know what you’ll be paying. Follow this link to try 1-800Accountant for 30 days with a money-back guarantee. |
2 | Contact a valuation specialist who can help you to set a fair price for your business.
Looking for a valuation specialist who’s experienced in pricing businesses? Click this button to find one near you:
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3 | Find an attorney who will help you create a non-disclosure agreement (NDA), assess the offers you receive, and ensure that you and the business you’ve labored to build remain protected.
In our article, How to Find the Right Attorney for Your Business Exit, we explain some of the qualifications you should look for.  Find the Right Attorney to Help You Sell Your Business Before, during, and at the close of your sale, you’ll need an attorney to help you protect your business secrets, navigate offers, and make informed decisions. In this guide, you’ll learn how to find experienced attorneys, review their qualifications, and select one with the skills and know-how to help you sell your business. Who […] www.owneractions.com .Want to find an attorney? Start here:
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4 | Look into buyer-and-seller platforms that’ll allow you to list and promote your business. These may include Bizbuysell.com, Bizquest.com, Dealstream.com, and Smergers.com, among others. |
5 | Study other business listings to learn how to market your business. |
6 | Draft a prospectus or an executive summary that explains what your business is, who it serves, and how it generates value. Our article, Ready to List Your Business? Presentation Is Key., can help you with this process. Ready to List Your Business? Presentation is Key. Thinking of listing your business for sale? Whether you choose to sell it with a broker or go it alone, you’ll need to devote time to determine how you should present your business to your pool of potential buyers. What does this mean? For one thing, you should think about how many specifics you’re willing […] www.owneractions.com . |
7 | Research what potential buyers will be looking for and ensure that you’re prepared to share the kinds of information that vetted potential buyers may request. Our article, The Six Must-Have Elements You Need to Secure Offers from Qualified Buyers, can help you get started. The Six Must-Have Elements You Need to Secure Offers from Qualified Buyers More investors than ever before are eager to buy reputable, high-performing businesses with proven records of success. What’s attracting these buyers? Surprisingly, it’s not only the industry a business serves, the market it supports, or the projections that it can make for future years. Buyers are also looking for transparency, organization, and clarity in the […] www.owneractions.com . |
8 | Consider smart moves like upgrading your business’s operating systems, dressing up your storefronts, or pushing out bloated inventories to make your business appear more physically and fiscally attractive to potential buyers. |
9 | Study confidentiality best practices to protect your operating secrets and other elements that are critical to safeguard. Read our article, Confidentiality and the Sale of Your Business, for guidance. Confidentiality and the Sale of Your Business Many small business owners wonder whether they should share the news of their sale with others or keep their plans to exit confidential. Experts often recommend full confidentiality when owners sell a business, partly because of the problems that exit announcements can introduce. These problems, which may include rapidly declining sales, strengthening competition, turnover of […] www.owneractions.com . |
10 | Post your listing, and be ready to field questions, arrange site visits, and host interviews and evaluations with buyers who may make an offer. |
As offers come in, be sure to connect with an attorney who can help you understand the specifics of their offers, form counteroffers, and come to an agreement on terms.
With preparation—and a little outside assistance—you can handle the sale of your business.
Find more support and a checklist of important seller actions by logging into your owner’s portal.
