General BusinEss
Broker, Banker, or Web Site?
your best bet for selling your business
sales contracts. As the sales process
proceeds, these sites will continue to offer
B
U
S
I
N
E
S
S
you guidance and advice — although not
always for free. They will even find a local
F
O
R
lawyer, who has been prequalified, to
represent you at the closing.
SA
L
E
… versus man
Alternatively, professional sell-side
representatives, such as business brokers
and investment bankers, add a lot of
value by providing an actively managed
until recently, small-business owners who wanted to sell their
sales program. They regard the Internet
companies were limited to becoming their own sales agent
as just one in a number of effective
marketing tools they can use. And
or using a commercial business broker. But times have changed.
because they get paid when the deal
closes — and their fees are usually
a percentage of the sale price they
negotiate — their interests and yours
Selling a small business has become big wired into as many as 30 search engines, are always aligned.
business. In California alone, more than a web of connectivity that enables you Sales agents also differ from online
7,550 businesses were sold in the first to tap into the global market to find a sales sites in that they start with an
four months of this year — that’s about buyer. And the premise is one that works. in-depth analysis of your company to
62 every calendar day. Given the growth Because the sites offer you a bigger pool determine its value. Then, they develop
of the business brokerage industry, it’s of prospects, you’re more likely to identify a comprehensive marketing plan and
no surprise that investment bankers and qualified leads. write an offering memorandum that
Web site operators have joined business In addition to global reach, a Web site outlines the business’s attributes. And
brokers in this market. sale means you’re firmly in control of the most important, they personally qualify
As a result, business owners who are sales process. Plus, you save money by
all prospects before working with them,
looking to sell their companies have three
replacing your broker with a mouse. which quickly eliminates the tire kickers.
choices: Internet, broker, or banker.
Simply post basic information about your Once a potential buyer is identified,
company’s customers, suppliers, sales, and sell-side representatives can add even more
Machine… finances on one of the many available value. They understand how to provide
Driving the argument for using a Web Web sites, and your business is officially seller financing and structure an earnout
site is the fact that buyers increasingly are for sale. If you want more exposure than to make a deal. They can pit one buyer
Web-savvy entrepreneurs who don’t make you’ll get by being in the site’s database, against another to drive up the sales price,
a move until they’ve completed an you can buy a banner or sidebar ads. or they can handhold the lone buyer to
Internet search. Consequently, sites such These sites will help you through the get a deal done. Whereas an Internet
as SellMyBusiness.com, Bizbuysell.com, sales process by showing you how to value site puts you firmly in control, using
and BizTrader.com have become popular. your business and by providing standard- an intermediary enables you to sit back
These sites pitch common benefits: They’re ized documents, such as purchase and and let someone else do all the work.
sellMyBusiness.com Bizbuysell.com Biztrader.com
simply post basic information about your company’s customers, suppliers, sales, and finances on one of the many
available web sites, and your business is officially for sale.
52 I July 08 I Growing Wealth I growingwealthmag.com
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