The Role of the Business Broker
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The Role of the Business Broker in a Business Sale
We are certainly in interesting times. I recently put to market a #property #management company. Here in #Orlando these #businesses are highly sought after. It is a fragmented industry where the operational model ranges from owner operator to web based platforms with multi revenue streams. In Orlando, there are something like 700 of these companies of varying sizes ranging from mom and pop operations to publicly traded entities.
Anyway when these things come to market the wolves come to dinner namely larger companies trying to scale come to the game and try to beat down a seller by telling them “how valuations are done” and “what the rule of thumbs are for selling prices”. So back to my title….”What is the role of the Business Broker in the Business Sale?” It is in short to drive competition to create as high a demand for the business and subsequently the highest price for the seller. Of course valuation is part of the equation but a skilled broker should not be lazy and certainly not favor buyer “rules of thumb” and a quick sale.
All offers should be viewed in the proper light of price, terms, speed to close as well as supply and demand but the #sellers #business broker should focus on the target buyer that brings the highest sales price.
So to the sellers out there….if a broker gives you a simplistic value like a flat % of sales, or # of months revenue or Price per account….run and run fast. They certainly are not doing the hard work of proper valuation and certainly not working to get the highest and best offer available in the marketplace #choosewisely #businessbroker #propertymanagement #vacationrentals
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