In some cases, business owners will seek the services of a real estate broker to sell their business. This is usually a very unwise approach for the business owner as real estate brokers are typically unskilled at selling a business. Not only do real estate brokers generally lack experience in successfully selling a business, they also do not have knowledge of the unique process and various aspects of selling a business. A real estate “sales” mindset will likely produce suboptimal results for the owners of the business. Placing a “for sale” sign outside a business may have mixed results in attracting a buyer but can greatly damage a business’s relationship with customers, verdors, suppliers, etc.
Professional business brokers typically have extensive experience confidentially selling businesses in a variety of industries. This extensive experience is useful when it comes to pre-screening prospective buyers and negotiating or structuring a transaction. Professional business brokers do not have “open houses” for businesses and buyers who are window shopping or looking to kill time on a weekend. Prospective buyers must be carefully pre-screened for financial qualification, so as not to widely disseminate confidential information pertaining to the business. Such dissemination of information could have a detrimental impact upon the business. In addition, professional business brokers’ experience is useful when negotiating and structuring a deal in creative ways that satisfy both the interests of the sellers and the desires of the buyers.