without the use of a broker?
It’s more interesting to begin by asking: Can a business be sold without the use of a broker? The undisputed answer is obviously yes. Many businesses still sell through private parties.
Sellers hire brokers because they believe the broker will do a better job than they would. Knowing whether the broker you’re hiring has any practical experience and any success selling businesses in your area—that’s the hard part!
Key Functions of a Broker
Business valuation: Fair market value is what a willing buyer will pay a willing seller, period. Without selling a number of businesses in a particular area, a broker couldn’t possibly know what fair market value is for a business. Without this experience, it’s simply theory. The right broker will know the value based on experience and work with local valuation experts to assist in the process.
There is a reason
some brokers successfully sell many businesses each year
while others don’t. Some work hard and produce results while others merely list businesses and wait. Selling a business is not a simple process. It’s a complex, legally binding transaction with potential repercussions far into the future.