Vendor Guide

This shows you how active they are and the resources to sell your business. A good dedicated broker can only work on 6-8 deals a year. More than that they lack the focus and dedication to your business. Less than that they don’t have the resources to fully assist you.

Since this money is usually taken up front, your broker should know exactly how much they are spending and where they are spending it on. Brokers have package deals with advertisers like Seek Business or Commercial RealEstate your ad usually costs an agency between $25 to $40 per month on each of these websites.

This could be a factor in how quickly a business is sold due to the subtle nuances each industry might have. For example, certain franchisors require assets in form of property in Australia or licensing requirements that the broker in a given industry might have identified in the buyer screening process.

This relates directly to how well they are suited in pricing your business. Your Accountant could value your business but what the market is paying for could be different and your broker must know what the market is paying for your type of business based on what they have sold recently. For example, a technology company is valued based on the growth numbers and what the market believes the business could be in 5 years not necessarily based on today’s earnings.

Most likely the answer should be yes. Cash transactions could happen even for large transactions over 2 million dollars but it is possible for a buyer to request this if they are short on cash. Getting a buyer secured in the business with vendor financing at a higher asking price could mean a win-win situation for both the buyer and seller.

It depends on the industry and size of the business and due diligence involved. Seek Business released their survey data showing on average businesses listed for sale take 7-9 months to sell. Depending on the buyer’s experience, both parties’ solicitors a deal could happen in less than 3 months.

It’s not about how many websites you are on, but the broker's ability to have your business where it’s most likely to be seen by possible buyers, but most importantly, they should have a database of potential buyers that have been screened already matching them to your business.

A broker could help close a deal, stay emotionally detached from the deal, and do the work you would have to dedicate your time to while operating your business or be charged by your solicitor per hour to do the negotiations that they are not equipped with to do. The average commission is about 6-10 % depending on freehold on the business. Make sure you understand how much you will have in pocket for the deal.