Selling Your Business in California | Broker vs. DIY

June 11, 2025
Selling your business

What are the benefits of using a business broker to sell your business in California?

This in-depth guide will help you navigate the process of selling your California business.

Discover the stages, benefits, challenges, and California-specific legal requirements.

For many California business owners, the decision to sell represents the culmination of years, perhaps even decades, of hard work, dedication, and significant personal investment. It’s a pivotal moment, not just financially, but emotionally. As you contemplate this important transition, a fundamental question arises: Do you enlist the expertise of a professional business broker, or do you navigate the intricate process of selling your business yourself?

If you are considering valuing and selling your company within six to twelve months, give Andrew Rogerson, a certified business broker based in Sacramento, California, a Call Toll-Free at (844) 414-9700 or email me at support@rogersonbusinessservices.com, who services the whole state of California.

Selling a business in California is far from a simple transaction. It’s a multi-faceted undertaking involving complex financial analysis, strategic marketing, rigorous negotiation, and navigating legal and regulatory requirements. The path you choose can profoundly impact the sale price, terms, confidentiality, and ultimately, the success of your exit. Industry data consistently shows that many business owners are significantly unprepared for the complexities of a sale before seeking professional help, highlighting the importance of understanding the process upfront.

This guide provides a detailed, step-by-step comparison of these two distinct paths: the broker-assisted sale and the Do-It-Yourself (DIY) approach. Drawing on nearly two decades of M&A experience in the California market, I will guide you through the key stages involved, highlighting the advantages and challenges unique to selling a business in the Golden State.

My goal is to empower you with the comprehensive information needed to make an informed strategic decision that aligns with your personal goals, your business’s needs, and your available resources. Whether you ultimately choose to partner with a broker or go it alone, understanding the full scope of the journey is the critical first step towards a successful business exit in California.

Understanding the Stages of Selling Any Business

Regardless of whether you engage a business broker or choose the DIY route, the process of selling a business generally follows a universal sequence of key phases. Think of these as the essential milestones you must navigate on the path to a successful exit. Understanding these stages provides the necessary framework for comparing the broker-assisted and DIY approaches, which we will delve into in the following sections. While the stages are universal, the level of preparedness at each step can vary greatly among sellers, significantly impacting the likelihood of a successful transaction.

Here are the core stages involved in selling any business:

Preparation & Planning: This preparation phase of selling a business in California involves getting your business “sale-ready.” It includes organizing financial records, identifying the strengths and weaknesses of the company, addressing potential red flags, and defining your personal and financial goals for the sale. As highlighted in the “Am I ready to sell?” document, asking yourself fundamental questions about your motivation, post-sale plans, and financial needs is crucial at this stage.
Valuation: Determining the market value of your business in California is a critical step. This involves analyzing financial performance, industry trends, and comparable sales to arrive at a defensible asking price. As noted in the provided materials, various valuation methods exist, and getting an objective perspective is key.
Marketing & Finding Buyers: Once the business is prepared and valued, the next step is to market your business for sale confidentially to attract potential buyers. This involves creating compelling marketing materials and targeting a pool of prospects.
Buyer Screening & Confidentiality: Protecting the confidentiality of your business is paramount during the sale process. This stage involves screening potential buyers to assess their financial capability and serious intent before sharing sensitive information, typically through the use of Non-Disclosure Agreements (NDAs).
Negotiation & Offers: Receiving and evaluating offers is a crucial phase that requires skilled negotiation to reach agreeable terms and a mutually acceptable price with a potential Buyer.
Due Diligence: Once an offer is accepted, the Buyer will conduct a thorough investigation of your business to verify the information provided. This due diligence phase is critical and can often make or break a deal. As the “Successfully Sell Your Business_RBS.pdf” mentions, roughly 50% of deals can collapse during this stage.
Closing: The final stage involves satisfying all conditions of the purchase agreement, securing financing (if applicable), and completing the legal and financial transfer of ownership. This requires coordinating with various parties, including attorneys and escrow officers. See case studies and learn more about these stages in business that Rogerson Business Services helped successfully sell in California.

These stages, while presented linearly, often involve overlapping activities and can require revisiting previous steps. Now that we have this foundational understanding, we can proceed to examine how the broker-assisted and DIY paths navigate each of these phases.

Option 1: Selling Your Business with a Business Broker (The Supported Path)

Engaging a professional business broker is akin to hiring a seasoned guide for a complex expedition. In the context of selling a business, particularly in a dynamic market like California, a qualified broker brings expertise, resources, and a network that can significantly streamline the process and enhance the likelihood of a successful outcome. This is the supported path, where the broker takes the lead on many of the intricate tasks, allowing you, the owner, to remain focused on running your business.

Here’s how a business broker typically assists you through each stage of the selling process in California:

Stage 1: Preparation & Planning with a Broker

Broker’s Role: A broker acts as your initial consultant. They help you organize and “clean up” your financial records, often recommending a “recasting” of financials to accurately reflect the business’s true earnings potential (Discretionary Earnings). They assist in identifying key value drivers that will appeal to buyers and proactively spot potential red flags that could derail a deal if not addressed early. Based on their market experience, they help set realistic expectations regarding the sale timeline and potential price range. As many guides suggest, they help sellers focus on essential items buyers care about.
Seller’s Experience/Benefit: You benefit from a guided, structured process right from the start. The broker’s strategic advice helps enhance the business’s attractiveness and value before it even hits the market. This early preparation, as highlighted in the “Exit-Preparation-Insights-From-Axial-Investment-Bankers.pdf” (where many sellers are unprepared before hiring help), significantly reduces initial stress and saves you considerable time trying to figure out where to begin.

Stage 2: Business Valuation with a Broker

Broker’s Role: A professional broker doesn’t rely on guesswork. They conduct a thorough and objective valuation of your business using methodologies relevant to the California market and your specific industry. This often involves preparing a detailed Broker’s Opinion of Value (BOV) or a more formal valuation report, taking into account factors such as discretionary earnings and market comparables. In California, where market dynamics can vary significantly by region and industry, a broker’s local market knowledge is invaluable.
Seller’s Experience/Benefit: You gain confidence in your asking price, knowing it’s based on professional analysis and market data, not just your perception. A well-supported valuation makes the price defensible to potential buyers and sets a clear starting point for negotiations, avoiding the risk of under- or over-pricing the business.

Stage 3: Marketing & Finding Buyers with a Broker

Broker’s Role: Brokers are experts at creating professional, compelling marketing materials, such as a Confidential Information Memorandum (CIM). They list your business confidentially on relevant platforms and leverage their existing network of potential buyers, which often includes individuals and strategic buyers actively looking for opportunities in California. This includes utilizing state-specific associations, such as the California Association of Business Brokers (CABB), and national platforms known for attracting buyers interested in the California market, as well as their private networks. Their reach extends far beyond your network, increasing the pool of potential, qualified buyers.
Seller’s Experience/Benefit: Your business is presented professionally and confidentially to a broad audience, eliminating the need for you to manage marketing efforts. This saves you significant time and ensures broader exposure to potential buyers than you could likely achieve on your own.

Stage 4: Buyer Screening & Confidentiality with a Broker

Broker’s Role: Maintaining confidentiality is paramount throughout the entire sale process. A broker rigorously implements confidentiality measures, including requiring potential buyers to sign Non-Disclosure Agreements (NDAs) before sharing any sensitive information. They screen potential buyers for their financial capacity, relevant experience, and serious intent, filtering out time-wasters and unqualified prospects. Business brokers protect confidentiality through strict Non-Disclosure Agreements (NDAs) and blind marketing efforts that shield your business’s identity until buyers are qualified.
Seller’s Experience/Benefit: Your business’s confidentiality is actively protected, which is crucial for maintaining employee morale, customer confidence, and your competitive edge. You only spend time engaging with serious, financially capable buyers who have been vetted, saving you the frustration and risk of dealing with unqualified parties.

Stage 5: Negotiation & Offers with a Broker

Broker’s Role: When offers are received, the broker acts as an impartial intermediary, facilitating communication and negotiations between you and the Buyer. They advise you on the terms of the offer, help structure counter-offers, and work to bridge gaps to achieve the best possible price and terms for you. Their experience in navigating complex negotiations can be invaluable in maximizing the sale value.
Seller’s Experience/Benefit: You benefit from expert negotiation skills and experience, increasing the likelihood of maximizing your sale price and securing favorable terms. The broker acts as a buffer, removing some of the emotional intensity from discussions and allowing you to focus on the substance of the deal.

Stage 6: Due Diligence with a Broker

Broker’s Role: Once an offer is accepted, the broker assists in managing the due diligence process. They coordinate the flow of information between you and the Buyer, helping to organize and present documentation. They anticipate potential questions or concerns that may arise during the Buyer’s review and assist in addressing them promptly to keep the process moving forward and mitigate the risk of the deal falling apart. Buyers conduct due diligence to verify financial representations, assess operational health, and confirm the Quality of Earnings (QofE), mitigating their investment risk.
Seller’s Experience/Benefit: The due diligence phase is more streamlined and less disruptive to your daily business operations. The broker’s experience helps anticipate and troubleshoot issues, reducing the likelihood of surprises that could jeopardize the transaction.

Stage 7: Closing with a Broker

Broker’s Role: In the final stages, the broker works closely with all parties involved – attorneys, accountants, escrow officers, and lenders – to manage the closing checklist and ensure all conditions are met. They help navigate any last-minute hurdles that may arise to facilitate a smooth transfer of ownership. In California, this includes understanding the specific requirements of escrow and potentially the Bulk Sale process.
Seller’s Experience/Benefit: The closing process is typically smoother and more efficient with a broker coordinating the various parties and requirements. This reduces the administrative and legal burden on you, allowing for a less stressful conclusion to the sale.

Choosing the right broker-assisted path means leveraging professional expertise at each critical juncture, significantly increasing your chances of a successful and favorable business sale in California.

Option 2: Selling Your Business Yourself (The DIY Path & Its Challenges)

Opting to sell your business without a broker is choosing the Do-It-Yourself (DIY) path. This route means that, as the business owner, you assume direct responsibility for every aspect of the sales process. While it might seem appealing to save on brokerage fees, it’s crucial to understand the significant time commitment, expertise required, and inherent risks involved. Based on my experience, many DIY sellers underestimate the complexity and demands of this process, often leading to frustration, delays, a lower sale price, or even a failed transaction. Studies indicate that a significant percentage of sellers lack formal exit planning and familiarity with their financial situation before attempting a sale, leading to common mistakes such as unrealistic expectations and inadequate financial preparation.

Here’s a look at what the DIY path entails at each stage and the challenges you’re likely to face:

Stage 1: Preparation & Planning – DIY

Seller’s Action: You are solely responsible for preparing your business for sale. This means identifying what financial statements, legal documents, and operational details need to be organized and potentially “cleaned up.” You must objectively assess your business’s strengths and weaknesses, identify potential issues that buyers might uncover, and set realistic expectations for the process without relying on external market insights. As the “Am I ready to sell?” document prompts, you need to answer critical personal and financial questions yourself to define your goals.
Challenges/Risks: A significant challenge is knowing what needs to be prepared and to what standard. You risk missing critical steps in organizing financials or legal documents, potentially overlooking key value drivers, or failing to identify and address red flags that will surface later. Setting unrealistic timelines or price expectations based on limited market knowledge is also a common pitfall, as highlighted in “Successfully Sell Your Business_RBS.pdf,” which notes that unrealistic expectations are a reason deals often don’t sell.

Stage 2: Business Valuation – DIY

Seller’s Action: You must research and understand various business valuation methods (as discussed in the provided materials), accurately apply them to your own business, and arrive at a defensible asking price. This might involve using online calculators or generic formulas, but you lack the deep market data and experience of a professional appraiser or broker.
Challenges/Risks: The primary risk is an inaccurate or biased valuation. Emotional attachment can lead to overpricing, which can scare away potential buyers; conversely, underpricing means leaving money on the table. Without expertise in normalizing financials or understanding current California market multiples, you may struggle to justify your price to sophisticated buyers, potentially resulting in a significantly lower sale price than the business is truly worth.

Stage 3: Marketing & Finding Buyers – DIY

Seller’s Action: You are responsible for creating all marketing materials, including a business summary and, if applicable, a more detailed prospectus. You must identify platforms to advertise the sale (which can compromise confidentiality if not done carefully) and reach out to your limited personal or professional network to find potential buyers.
Challenges/Risks: Creating professional, appealing marketing materials requires skill and time. Your reach to qualified buyers is likely limited compared to a broker’s network, potentially resulting in fewer prospects. Advertising publicly increases the risk that competitors, employees, or customers will discover the sale prematurely, which can lead to damaging rumors or instability. You may also attract a higher proportion of unqualified “tire-kickers.”

Stage 4: Buyer Screening & Confidentiality – DIY

Seller’s Action: You are responsible for creating, implementing, and managing Non-Disclosure Agreements (NDAs) independently. You are solely responsible for screening potential buyers, assessing their financial capacity, and determining their serious intent before sharing confidential information.
Challenges/Risks: Poorly drafted or managed NDAs can lead to breaches of confidentiality, which can severely damage your business, employee morale, and customer relationships. Without experience, you may struggle to effectively vet buyers, wasting valuable time on unqualified leads or, worse, revealing sensitive information to individuals who pose a risk (like competitors fishing for information).

Stage 5: Negotiation & Offers – DIY

Seller’s Action: You will receive offers directly and must negotiate all terms with the Buyer yourself. This requires managing communication, understanding complex deal structures (like earn-outs or Seller financing), and advocating for your best interests without an objective intermediary.
Challenges/Risks: Emotional attachment to your business can hinder objective negotiation, potentially leading to poor decisions or creating an adversarial dynamic with the Buyer. Lack of experience in business sale negotiations means you may leave significant value on the table, agree to unfavorable terms, or fail to anticipate potential issues in the deal structure.

Stage 6: Due Diligence – DIY

Seller’s Action: You are responsible for responding to all Buyer requests for documentation and information during due diligence. You must manage the flow of information, answer questions directly, and address any concerns the Buyer raises while simultaneously running your business. Buyers conduct due diligence to verify financial representations, assess operational health, and confirm the Quality of Earnings (QofE), mitigating their investment risk.
Challenges/Risks: The volume and complexity of due diligence requests can be overwhelming, particularly when attempting to manage daily operations. You may not know what information is standard to provide versus what is excessive or unusual. A lack of organization or delays in providing information can raise red flags for the Buyer and potentially cause the deal to collapse, as noted in the provided materials, which highlight the high failure rate during this stage.

Stage 7: Closing – DIY

Seller’s Action: You must coordinate with your legal counsel, accountant, the Buyer’s team, and the escrow company to manage the closing process. This involves tracking conditions, ensuring all necessary legal documents are prepared and executed, and navigating the final steps required for the transfer of ownership, including specific California requirements like the Bulk Sale process.
Challenges/Risks: Inexperience with the intricacies of business sale closings can lead to delays, errors, or overlooking critical legal or financial details. Managing the coordination between multiple parties is complex and time-consuming. This stage can be highly stressful, and mistakes can have significant legal or economic consequences.

While the DIY path eliminates brokerage fees, it demands a substantial investment of your time, requires a diverse skillset you may not possess, and significantly increases the risks at every stage of the sale process. The lack of preparation is a significant factor in the high failure rate of DIY sales, with roughly 50% of deals collapsing during the due diligence phase alone. For many California business owners, the perceived savings are often outweighed by the costs of a less favorable outcome or a failed sale attempt.

Direct Comparison: Broker vs. DIY Side-by-Side

To provide a clearer picture of the two paths, let’s compare the broker-assisted and DIY approaches based on key factors crucial to a California business owner considering a sale.

Factor	Selling with a Broker	Selling Yourself (DIY)
Time & Effort	Saves significant owner time; the broker manages most tasks.	Extremely time-consuming; requires substantial owner involvement (15- 20+ hours per week).
Confidentiality	Broker expertise ensures rigorous confidentiality measures, including non-disclosure agreements (NDAs) and blind marketing.	High risk of breaches due to limited experience and the necessity of public marketing.
Valuation Accuracy	Professional, objective valuation based on market data and expertise (BOV).	Potentially inaccurate or biased valuation; it is difficult to justify the price to buyers.
Buyer Pool & Quality	Wider reach to a screened pool of qualified, serious buyers through broker networks.	Limited network; attracts more unqualified leads and “tire-kickers.”
Negotiation Outcome	Benefits from expert negotiation skills and an objective intermediary for the best terms.	Risk of leaving value on the table due to emotional attachment and lack of negotiation experience.
Likelihood of Success	Statistically higher close rates due to expertise, process management, and resources.	Many DIY sales fail due to a lack of preparation, exposure, negotiation issues, or due diligence collapse.
Stress Level	Significantly lower; the broker handles complexities and acts as a buffer.	High; the owner manages all aspects, often while continuing to run the business.
Cost vs. Value	The broker fee is an investment for potentially higher net proceeds and a smoother process (typically ranging from ~5.5% for a $5M deal to ~2.0% for a $ 100 M+ deal, as per industry surveys).	The saving fee comes at the cost of significant time, increased risk, and potentially a lower sale price or no sale at all.
Expertise	A broker brings market knowledge, process expertise, and negotiation skills.	The owner must learn and execute all aspects of the complex sale process independently.
Market Knowledge (CA)	The broker understands specific California market trends, Buyer types, and regulations.	The owner must research and understand complex local market dynamics without expert guidance.
Legal/Regulatory (CA)	The broker is familiar with California-specific requirements (licensing, Bulk Sale, escrow). In California, business brokers involved in transactions including real estate or lease assignments are legally required to hold a California Department of Real Estate (DRE) license, providing sellers with an added layer of regulatory oversight.	The owner must navigate California’s legal and regulatory landscape independently, risking errors or delays.

This side-by-side view clearly illustrates the trade-offs involved in choosing between a supported, broker-assisted sale and the demanding DIY path. While the allure of saving the commission is understandable, the potential costs in terms of time, stress, risk, and ultimately, the final sale outcome, are significant.

Key Considerations for Your Decision in California

Choosing the right path to sell your business in California is a strategic decision with lasting implications. It’s not a one-size-fits-all answer, and the optimal approach depends heavily on the unique characteristics of your business, your circumstances, and your goals for the sale. Drawing from my experience in the California market, here are the key factors you should carefully consider when deciding between hiring a business broker and pursuing a DIY sale:

Note: The point below regarding Legal/Regulatory considerations in California includes a specific sentence highlighted for emphasis.

Key Consideration	Description
Size and Complexity	Larger, more complex businesses (multiple locations, intricate financials, many employees) benefit significantly from a broker’s expertise in valuation, marketing, and due diligence. Even smaller companies benefit from a broker’s network and process management, which ensures confidentiality and facilitates the identification of qualified buyers.
Your Time & Expertise	Selling DIY requires 15- 20+ hours per week for months. Can you dedicate this while running the business? Do you have expertise in valuation, marketing, negotiation, and legal and financial aspects of business? Limited time or expertise strongly favors hiring a broker.
Need for Confidentiality	Protecting confidentiality is crucial. Brokers excel at confidential marketing and screening. DIY, especially with public advertising, risks premature disclosure to employees, customers, competitors, or suppliers, which can be detrimental.
Your Financial Goals	If maximizing sale price is key, a broker’s expertise in valuation, broader Buyer reach, and negotiation can achieve a higher price that outweighs the commission, resulting in higher net proceeds. This makes the broker path generally more strategic for maximizing financial return.
Market Conditions (CA)	California’s diverse market requires an understanding of specific regional and industry trends, as well as comparable sales data, which brokers possess. Navigating CA-specific legalities (broker licensing, Bulk Sale Act, escrow) without expertise is challenging and risky. A CA-experienced broker is essential here.
Legal/Regulatory (CA)	Navigating California’s legal and regulatory landscape independently can be challenging and increases the risk of errors or delays. This includes understanding requirements like the Bulk Sale Act and escrow procedures. In California, business brokers involved in transactions including real estate or lease assignments are legally required to hold a California Department of Real Estate (DRE) license, providing sellers with an added layer of regulatory oversight.
Emotional Detachment	Selling is emotional. Attachment can cloud judgment during negotiations and due diligence. A broker provides an objective third-party perspective, buffering emotions and keeping focus on the deal’s business aspects. If emotional detachment is challenging, a broker can offer valuable support.

Weighing these factors honestly will help you determine which path is best suited for your specific situation and increase the likelihood of a successful business sale in the competitive California market.

Making Your Informed Decision: When is a Broker Right for You?

Based on the complexities outlined and drawing from years of experience in the California M&A market, hiring a business broker is typically the strategic choice for a Seller in several key scenarios:

You want to maximize your sale price. A broker’s expertise in valuation, marketing reach, and negotiation significantly increases the probability of achieving the highest possible price and most favorable terms for your business.
You need to maintain confidentiality. Brokers are equipped to market your business discreetly, protecting sensitive information from employees, customers, and competitors until the appropriate stage of the process is reached.
Your time is valuable and best spent running your business. The selling process is incredibly time-consuming. Engaging a broker allows you to focus on maintaining and growing your business’s value during the sale period, rather than getting bogged down in the transaction’s intricacies.
You lack experience in business sales, valuation, or negotiation. Selling a business is likely a once-in-a-lifetime event for most owners. Brokers bring specialized knowledge and experience gained from numerous transactions.
Your business is complex or has significant value beyond tangible assets. Businesses with substantial intangible assets (like goodwill, systems, or customer relationships) require sophisticated valuation and marketing strategies that a broker can provide.
You want to increase the probability of a successful closing. Brokers are skilled at managing the entire process, from preparation and marketing through due diligence and closing, navigating potential roadblocks and keeping the deal on track. As the provided materials suggest, many DIY deals fail during critical stages, such as due diligence.

While there might be rare instances where a DIY sale is feasible for a straightforward, small business with a readily available Buyer, for most California business owners, the benefits provided by a professional broker far outweigh the commission cost when considering the overall outcome.

Final Take By Andrew Rogerson

Deciding how to sell your business in California is one of the most significant choices you will make as an owner. You stand at a crossroads, with the path of engaging a professional business broker offering support and expertise, and the Do-It-Yourself path demanding your direct, extensive involvement.

While the allure of saving the brokerage commission on the DIY path is understandable, it is crucial to recognize the substantial demands it places on your time and the significant risks it entails. As we’ve explored, selling your business yourself requires you to become an expert in preparation, valuation, confidential marketing, Buyer screening, negotiation, due diligence management, and complex closing procedures – all while continuing to run your business effectively. The risks of compromised confidentiality, inaccurate pricing, failing to attract qualified buyers, making errors in negotiation, or seeing the deal collapse during due diligence are considerably higher. This often results in a lower sale price than the business is truly worth, a prolonged and stressful process, or ultimately, no sale at all.

For most California business owners seeking a smooth, efficient process and the best possible financial and personal outcome from the sale of their life’s work, the expertise, extensive network, marketing resources, negotiation skills, and process management provided by a qualified business broker make it the more effective and ultimately more rewarding path. It is an investment that typically yields a higher net return and a far less stressful exit experience.

Frequently Asked Questions (FAQs)

Here are some common questions California business owners have when considering selling their business:

What’s the most significant risk of selling my business myself?

The most significant risks of selling your business yourself include compromised confidentiality, inaccurate valuation, difficulty finding qualified buyers, poor negotiation outcomes, and a higher chance of the deal failing during due diligence. The most significant risks include breaching confidentiality (which can damage your business and employee morale), setting an inaccurate valuation (either overpricing and deterring buyers or underpricing and losing money), failing to reach a vast pool of qualified buyers, making mistakes in negotiation that leave value on the table, and the high probability of the deal falling apart during the complex due diligence phase due to inexperience or disorganization.

How much does a business broker cost?

Business broker costs typically involve a success fee based on a percentage of the sale price, often with a tiered structure, and sometimes include an upfront retainer or monthly fees. Business broker fees typically consist of a success fee, calculated as a percentage of the final sale price. This percentage often follows a tiered structure (like the Lehman Formula), where the rate decreases as the sale price increases. Many brokers also charge an upfront retainer fee or monthly work fees, which may or may not be credited against the final success fee. The specific fee structure and percentage are negotiable and depend on the size and complexity of your business, as well as the anticipated sale value.

Does hiring a broker guarantee a higher sale price than selling myself?

No, hiring a broker does not guarantee a higher sale price, but it significantly increases the likelihood of achieving a higher net price compared to selling yourself. While no broker can guarantee a specific sale price, their expertise substantially increases the probability of achieving a higher net sale price (after accounting for their commission) compared to a sale conducted without their assistance. They accomplish this through accurate valuation, professional marketing to a broader pool of qualified buyers (which creates competitive tension), and skilled negotiation. Their goal is to maximize your return on investment.

Can a small business in California benefit from using a broker?

Yes, even small businesses in California can benefit significantly from using a broker. Absolutely. Even small businesses in California can make a significant impact. Brokers provide crucial confidentiality, access to a broader network of potential buyers (which is vital given the lower statistical success rate for small business sales), and professional management of the complex sales process. This can lead to a faster sale, a better price, and a less stressful experience for the owner.

How long does it typically take to sell a business with a broker versus doing it yourself?

Selling a business with a broker is typically faster than attempting to do it yourself, often averaging around 6.6 months compared to potentially over a year for DIY sales. The timeline varies based on market conditions and the specific business, but selling a company with a broker is often faster than attempting to do it yourself. Brokers have established processes and networks to mfacilitatethe tefficient movement of transactions forward While the California Association of Business Brokers (CABB) has cited an average time of around 6.6 months to sell a business when a broker is involved, a DIY sale can take significantly longer, often over a year, or may never close at all.

About the Author

Andrew Rogerson brings nearly two decades of hands-on experience in the California Mergers and Acquisitions (M&A)market. As a Certified Business Intermediary (CBI) and Certified Business Broker (CBB), he has guided numerous business owners through the intricate process of selling their companies. His insights are derived from a profound understanding of business valuation, market dynamics, negotiation strategies, and the unique legal and regulatory landscape of selling businesses in California.