Biz Broker Assistance

[Paul Sofia]

I am assisting someone who owns a hardware store in NC  It is housed on property she owns.  She can sell separately or together. The business has been there just shy of 56 years.  I just need a broker that will give her a proper valuation and someone that will be truly looking out for her best interest.

Thank you in advance

[Jonathan Bock]

@Paul Sofia

That is a truly large ask from a biz broker it is a rather interesting community with a lot of characters and certainly not filled with a ton of amazing and trustworthy operators.  Spend a day calling brokers on Biz Buy Sell and you will get a feel for how crazy this space is.  

The sales process should not be fast have they been preparing for their exit?  

The leverage possible with SBA financing should help increase the buyer pool and exposure. Hopefully, they can find a purchaser nationwide versus local so pricing is competitive and they get the best price/terms possible.  

So in summation, no broker getting 10% of the sales price is going to give the best valuation or look out for their best interest and that does not make them unethical; it is simply an impossible ask for their model.  They will look at the earnings apply a multiple and try to get it sold as fast as possible and get their check that is the model.  

Jonathan Bock, CPA