HOW SHOULD I SELL MY BUSINESS?
There are a number of options open to owners looking to sell their businesses:-
Specialist Business Transfer Agents / Business Brokers.
The Estate Agents of the business world with credible outfits including Christie & Co, First City Business Brokers, Myers La Roche, Adams & Co etc. Unfortunately, like their Estate Agent cousins, as well as reputable firms there are a number of cowboy outfits - charging inflated upfront fees with poor results. Choose your agent carefully.
Good Business Brokers are generally professional service providers able to help sellers to:-
- package and market their businesses effectively
- qualify prospective buyers and avoid time wasters
- negotiate a favourable deal
- co-ordinate the legal transfer process.
Broker’s fees are normally paid by the vendor. To avoid the cowboys, it is recommended that sellers choose an ICBA (Institute Of Commercial Business Agents) accredited individual or company.
Do It Your Self – if there is a willing buyer and a willing seller then it is possible to agree a price and go straight to solicitors. Some vendors proactively market their businesses independently of a Business Broker via advertisements in trade publications e.g. Farmers Weekly or via a number of online portals.
Via an accountant – some accountants will try to sell businesses on behalf of their clients, but many provide unrealistic valuations on businesses and are not really resourced to provide the same level of service, negotiation skills or critical post-Sale Agreed sale management.
Franchisor – for franchisees looking to sell on a franchise, there is sometimes an obligation within the franchise agreement to resell via the franchisor. However the franchisor may be quite happy with the status quo (as they are already receiving an ongoing income from the franchise) and their motivation may be to concentrate on trying to find more new franchisees.
