Updated: Mar 10
When you’re ready to consider selling your business, one option is to use a business broker. Here are a few of the questions prospective sellers ask about using a broker.
First, "Why should I use a broker to sell my business?"
Every FNBC licensed office represents business sellers and is successful in pricing, packaging, marketing, and selling the business. There are several reasons for this, and they revolve around knowledge and service.
First, pricing a business is challenging, especially if you don’t know how other businesses are being priced and presented to potential buyers, and especially if the highest fair price is to be achieved.
Next, selling a business means fielding a lot of buyer inquiries. If you have tried selling your business directly, you’ll know that managing these calls takes a lot of time. Most owners just don’t have the time to field the 50 or more buyer calls that, on average, it takes to sell a business.
Qualifying callers is not easy. By the time you get a "real" prospect, you may be so tired of wasting time on under-motivated, under qualified buyers that you miss out on the really good ones.
Finally, we know from experience that 90% of callers buy something different than they first called about. That means that your ad featuring a single business will reach only 10% of potential buyers!
Second, "How does FNBC work?"
Simply put, our affiliated offices make selling your business really painless.
We start with a free pricing evaluation of your company to determine the top price a buyer might pay in today’s market. There are absolutely no up front costs to sellers for this free pricing service. Even if you decide not to proceed, we hope that you will call us when you are ready in the future.
When you decide to hire our affiliated office, you will sign a listing agreement that gives the affiliate the right to represent you. Up to this point, all these "preliminaries" are completely confidential; no one anywhere – not even our other associates– will know about your interests until you approve the listing agreement.
The licensed office then "packages" all the information about the business & develops a professional marketing plan, all at the FNBC office's cost and at no charge to the seller.
Once you have listed your business, our licensee will market your business to our large bank of local buyers, and those in our affiliate offices nationwide. Our licensee office will also actively promote your business, but will not reveal its actual identity until a qualified buyer has signed a confidentiality agreement.
Our office creates "BLIND" ads for use in the newspapers and on the Internet. These ads describe the business acquisition, but are worded so that the reader can not determine the actual business being described.
A general business description (but not the business name or address) will be added to FNBC's incredibly successful web site, which generates thousands of annual buyer inquiries. The general description is also registered with over 200 other international and national business opportunity and newspaper web sites.
Our licensee will be showing the business to buyers, but only after scheduling a convenient time for you. Our associates will repeatedly advise buyers on the importance of absolute confidentiality.
Our associate will do their best to bring you offers at or very near the listing price. Because the listing price is substantiated by your business’ records, we are very successful in selling businesses at top prices.
Third, "How does FNBC differ from other brokers?"
As soon as we have a purchase agreement signed by both buyer and seller, that’s when our associates really go to work!
While our associates actually work for you, our associates also assist the buyer with all the details of completing the sale. We’re specialists, for instance, in helping buyers arrange financing. Since 90% of buyers are "first-timers", this valuable service really keeps a deal on track.
Our associates coordinate the closing with your creditors and the Buyer's lender, so that there are few last minute surprises and everything goes smoothly. No other firm goes so far to ensure that deals actually close.
These services are provided as an accommodation to our clients; and there are no extra charges for our offices\' to assist in the closing.
Finally, "What does this cost?"
For all these services, our licensee charge a success fee, which is a commission based on a percentage of the selling price, and is collected at closing. Our affiliates don’t charge sellers up front for anything on most transactions