Home
Distressed Businesses
  • All Distressed Businessess
  • Administrations
  • Liquidations
  • Winding Up
  • Insolvency Advice  New
Buy a Business
  • All Businesses for Sale
  • Find a Business for Sale
  • Raising Business Finance
  • Buyer Acquisition Service   New
  • Escrow Service   New
Sell a Business
  • Sell Your Business
  • List your Business
  • Seller Accounts
  • Need Help Selling?
  • Help With Finance New
  • Business Valuation
  • Business Wanted Adverts
Insights & News
  • View All News
  • View All Insights
  • Exclusive Insights New
Lens
  • Search all UK Companies  New
Log in
Join Now

Home / Insights / Do I need a broker to sell a business?

Do I need a broker to sell a business?

FOR SELLERS


The simple answer, no.

Selling a business does not mandate a broker.

As a business owner, you will be selling a product that has been your heart and soul for many years. And you want to get the price that it deserves but also give it to a buyer who will take it to new heights.

Of course there are situations where a broker may be needed, due to the enormity of the deal or complex matters. But at the end of the day, the point of hiring a broker as a business owner is to find you a buyer. That is all. All the other logistics including organising the sale paperwork and showcasing your business will be left to you or other experts you choose to hire.

So let’s flip it - why do you not need a broker to sell your business?

Not all brokers are specialised

As you enter the broker market, you will find that many brokers are not specialised in your particular industry. They thrive on selling businesses, but that doesn’t mean they know your industry inside and out. The best person who knows your industry and your business will be … you.

Of course, a broker can provide you with advice on the sale process and having done it day in and day out, they are best positioned to know the shortcuts. But you should keep in mind, you will not be getting specialised industry experience with all brokers.

Not needed in certain situations

If you are selling to your family or friends, using a broker may not be necessary at all. Or if your company has a lot of liabilities and debts to pay off, the broker is going to add a further cost to your already struggling business. It may be better to cut your losses and do the sale yourself.

Easier than you think

This is the most important point that business owners tend to forget. To sell your business without a broker is actually not as difficult as you may think. Especially since there are now a range of online platforms, like business-sale.com that can be used to advertise your business and find a buyer pool. Kip Mann, a Leeds-based entrepreneur found that when he used an online platform to sell a business, he got quality responses very quickly and the price to use the service didn’t make a dent at all in the overall sale price.

If you’re worried about marketing and advertising, the online world has made connectivity so much easier and this also means connecting buyers with sellers. The role of a broker is to find a buyer for you but when that is no longer the problem, why appoint a broker at all? Don’t spend money on the middleman, get connected to your buyer directly. As online platforms are not brokers, there is no excessive brokerage fee. Rather, you will be looking at a fixed fee to use the service, but nowhere near the fees of hiring a broker. Also, since you don’t have a broker, you can meet your prospective buyer sooner and also screen them early on.

It is true that using a broker gives you access to their pool of buyers but in the digital age, online platforms and social media have stepped up the competition for brokers. You may even find you can create your very own personalised buying pool.

You are the best negotiator for your business

You may think you need to have excellent negotiating and sales skills but remember, you built this business. Who could be better at showing it off to the buyer than you? Once you hand it over to the broker, the personal touch disappears almost instantly. A broker will not be emotionally invested in the sale like you and it is also unlikely that they will spend as much time on selling your business as you may hope. Selling your business on your own may actually mean you sell the business faster than if you were to have a broker.

It is you who has the familiarity with the day to day running of the business. Even if there is a buyer, you’re the one who will be taking them through your premises. The broker won’t do that. So a lot of the work is already being undertaken by you.

Cut out the middleman

You have faith in your business, show that to your prospective buyers. There is no reason why you can’t sell your business without a broker. In fact, you may find that you save a great deal of time and money by doing it on your own.

At the end of the day, the broker’s biggest strength lies in finding a buyer for you. But with social media and online listing sites, finding a buyer is not as difficult as it is made out to be.

Stay tuned for our DIY sell your business download - coming soon! Sign up to our mailing list today and be the first to know about it.


Share this article



Latest Businesses for Sale

Boutique Recruitment Business
London, UK

An accredited company with an excellent industry reputation. Client base includes a wealth of well-known blue-chip organisations and brands. Services an estimated 400 active clients and benefits from high retention rates, with approximately 80% of cl...

Asking Price: Offers Invited
Turnover: £1,000,000

RELOCATABLE


River-Front Restaurant
Gloucestershire, South West, UK

This is a well-established restaurant with a renowned reputation amongst local residents. This is a superb opportunity to take on a high turnover local business in an area teeming with customers. The business was founded in 2007 and has flourished un...

Asking Price: Offers Invited
Turnover: £526,777

LEASEHOLD


Designer, Manufacturer and Fabricator of Metal Components
South East, UK

Designs, manufactures and installs a range of lift and escalator components for clients within the construction industry, including car interiors, gear rafts, lift cars and slings, landing door seals, tracks, brake shoe linings and division screens...

Asking Price: Offers Invited
Turnover: £3,120,000

LEASEHOLD



View more businesses for sale

Search Insights

Latest Insights

A comparison of the private company M&A landscapes in the US and UK

FOR BUYERS

So you don’t have enough money to buy the business?

FOR BUYERS

How do you know when the right time is to sell your business?

FOR SELLERS

Free guide: 10 Biggest Buyer Mistakes

Sign up to receive our acquisition alert emails to get your FREE guide

Email


Insight Categories

  • - For Buyers
  • - For Sellers
  • - Distressed Businesses
  • - Industry Insights
  • - Sector Guides

View all insights

Want access to the latest businesses for sale?

Business Sale Report is your complete solution to finding great acquisition opportunities.

Join today to receive:

  • Comprehensive range of businesses for sale
  • Make direct contact with business sellers or their intermediaries
  • Access to all UK administrations, liquidations and winding-up petitions
  • Daily email alerts for the latest businesses for sale & distressed notifications
  • Business Sale Report publication posted to you every month
  • Advertise your acquisition requirements on our "business wanted" section

All this and much more, including the latest M&A news and exclusive resources

Become a Member

About Us

Business Sale Report is the UK's leading independent business for sale & distressed business listing service. Established in 1995, the report offers an up-to-the-minute, comprehensive overview of businesses for sale, latest distressed business listings and daily acquisition news.

Our Services

Businesses for Sale
Distressed Companies
List a Business
Help with Finance
Buyer Acquisition Service
Small Businesses for Sale

Company

About Us
Insights
News
FAQs
Reviews
Terms & Conditions
Privacy Policy

Get In Touch

020 8875 0200
[email protected]
167 Oakhill Road, London, SW15 2QW
Working hours: Mon-Fri, 9am - 5:30pm


Sign up to our free newsletter



© 1995-2022. Business Sale Report Ltd. All rights reserved. www.business-sale.com.