Options involved when selling your business

Listing your own business for selling is a crucial stage and a major decision you will take. Before you commence with the search for a buyer you should prepare your own business for the actual sale.

Private selling

Several business sellers prefer selling their business by themselves. Hence, such persons do not leverage services of any business brokers or agents. These sellers search for potential buyers on their own. There are many pros to selling in this manner, namely:

• Price savings: There is no question of paying any brokerage if you sell your business by yourself without aid from any business broker. Since most brokers charge anywhere from 10% of sale value or more, this can translate into major savings. 
• Knowledge of business: If you opt to sell the business yourself, then you are at an advantage. After all, no one knows the business as much as you do. Hence, you can sell the business better and display the plus points of the business.
• Short listing buyers: If you are selling the business on your own, you may have already found an interested buyer. You can then approach this person by yourself.

Business broker services

Most business sellers use services from business brokers because it is convenient, easy and fast. Since business owners do not have the time to hunt for potential buyers, brokers can do this job for them with ease. Brokers are specialized in finding appropriate buyers since they operate within this segment on a regular basis. In addition, brokers have your interest at heart because they earn a commission only when a sale happens. They help to screen all buyers before they are brought for discussion with you. At DforDollar.com, you can search for an appropriate business broker of choice in our broker section. This section contains comprehensive listings posted by business brokers and you can browse through these to find a broker of choice. 

Once you decide on a business broker to sell the business, you should also consult with a qualified accountant as well as lawyer to ensure there are no loopholes in the contract and agreements. 

Listing agreement

When you decide to carry on business with a business broker you will have to sign what is called listing agreement. This lists all the terms and conditions of the contract with the broker as well as various conditions and stipulations involved. The agreement will also detail the compensation provided to the broker when the sale happens. It is a good idea to consult with your accountant and lawyer to peruse the listing agreement details so that they can ensure the agreement is in your interest.

Employees and suppliers

If you do not wish to make the business sale confidential and wish to sell the business on your own, you could approach suppliers or employees to ask if anyone would be interested to buy the business. You could also ask them if they know anyone who might be interested.