What Is A Business Broker For Retiring Business Owners
Andrew Rogerson
in Management and Planning, Sell a Medical Practice, Selling your business
To understand what is a business broker, we need to understand the types of brokers first. A business broker helps retiring business owners in California with revenues under $1 million to get their business ready before putting the company up for sale.
If your business happens to generate $5 million to $50 million in yearly revenue, then you need to work with a merger and acquisition advisor, also known as an M&A advisor.
The California sun is setting on another day, and for one business owner, this may be the last day their company sees. It’s not an easy decision to retire and leave behind all the blood, sweat, and tears that went into building the business. But when the time comes, a business broker can help make sure that everything is in order before putting the company up for sale.
A business broker knows all the ins and outs of the sale process and can help get the best price for the business. They will work with the retiring owner to get all the paperwork in order and prepare the business for showings. They will also handle all the negotiations so that the owner can focus on enjoying their retirement.
Choosing a business broker is an important decision, but it doesn’t have to be difficult. With just a little research, you can find someone who will have your best interests at heart and get you top dollar for your company. So when it’s time to retire, don’t do it alone. Choose a business broker or an M&A Advisor to help you through this transition and ensure a smooth sale.
Business Broker Definition
A business broker is a professional who helps entrepreneurs buy and sell businesses. They are experts in the field and have a thorough understanding of the process, from start to finish. This means that they can help you get the best price for your business and find the right buyer for your specific situation.
Mainly, brokers work on small deals: businesses with less than $1m annual revenues. They are known as Main Street Brokers or intermediaries that specialize in business sales. Different from agents, who mainly focus on the real estate industry, brokers don’t take a commission; they earn a fee based on the success of the transaction.
If you want to retire soon and are looking to sell your business in California with revenues under $1 million, then working with a broker is your best option. They will help you get your business ready for sale and find the right buyer who is willing to pay top dollar.
Mergers and Acquisitions Advisors (M&A)
On the other hand, if your business generates $1 million to $50 million in yearly revenue, then you need to work with a merger and acquisition advisor, also known as an M&A advisor. These professionals help business owners with more significant deals and can get you a higher price for your company.
An M&A advisor is different from a broker in that they are more focused on the financial side of the deal. They will work with you to find the right buyer and negotiate the best price. They will also help you with the due diligence process and make sure that everything is in order before the sale.
If you are looking to retire soon and have a business that generates $1 million to $50 million in yearly revenue, then working with an M&A advisor is your best option. They will help you find the right buyer and get the best price for your company.
The Bottom Line
When it comes time to sell your business, you need to choose the professional that is best suited for your specific situation. If you have a small business with less than $1 million in annual revenue, then you should work with a business broker. However, if your business generates $1 million to $50 million in yearly revenue, then you need to work with an M&A advisor.
What Brokers Do
Brokers also have access to a wide network of potential buyers, which increases your chances of selling your business quickly and for the best price. Furthermore, they can help with the negotiation process and paperwork, taking a lot of the stress and hassle out of selling your business.
A business broker can help you sell your business quickly and for the right price by:
1. Accessing a wide network of potential buyers
2. Helping with negotiation
3. Handling paperwork
4. Reducing stress so you stay focused on your business
5. Guiding the process
Business Broker Fees
As a retiring business owner, you have a lot on your plate. Not only do you have to worry about the day-to-day operations of your business, but you also have to think about its future. When the time comes to sell your business, you’ll need to find a business broker or an M&A advisor. But before you sign on the dotted line, make sure you understand their fees.
Business brokers typically charge a percentage of the final sale price, so their fees will vary depending on how much your business sells for, and it can range from 10 to 12 percent for a Main Street Broker, but the fees are different for an M&A Advisor. In addition, some brokers may charge an hourly rate or a flat fee. Be sure to ask about all fees upfront so there are no surprises later on.
While business brokers can be a valuable resource, their fees can also take a big chunk out of your profits. With that in mind, be sure to shop around and compare fees before making a decision. After all, it’s your business – and your hard-earned money – so you should make sure you’re getting the best possible deal.
Hire a California Certified Broker to Sell my Business
When deciding to sell your business in California, you will likely go through several questions in your mind. Here are just a handful of many other questions that comes to mind.
- What is the value of your business?
- What should be the price at which you sell it?
- How can you find a buyer?
- How can you find a buyer who is interested in buying your business?
The answers to these questions will largely depend on the experience and network of contacts of your chosen business broker in California that focus on a geographic location by region:
Northern California
City Population
.Source: Wikipedia
Central Valley California
| SMSA | Population |
|---|---|
| Sacramento Metropolitan Area | 2,527,123 |
| Fresno Metropolitan Area | 930,450 |
| Bakersfield Metropolitan Area | 839,361 |
| Stockton Metropolitan Area | 696,214 |
| Modesto Metropolitan Area | 518,522 |
| Visalia–Porterville Metropolitan Area | 449,253 |
| Merced Metropolitan Area | 259,898 |
| Chico Metropolitan Area | 220,266 |
| Redding Metropolitan Area | 177,774 |
| Yuba City Metropolitan Area | 167,497 |
| Hanford–Corcoran Metropolitan Area | 153,765 |
| Madera Metropolitan Area | 152,925 |
| Red Bluff Micropolitan Area | 63,601 |
Source: Wikipedia
So, choose wisely a qualified business broker near you to sell your business in California.
Conclusion
If you’re thinking about retirement or selling your business, working with a broker is a great option. They will help you navigate the process from start to finish and ensure that you get the best possible price for your business. So if you’re ready to take the next step, contact a broker today.
Selling your business is a life-changing event. That’s why it’s essential to plan for this event carefully.
If you’re listing a business for sale in California, you’ll want to find a reliable business brokerage firm. At Rogerson Business Services a team of experienced professionals works to plan and carry out the buying and selling business process in California.
You can also consult with Andrew Rogerson on how to increase your overall value.
You might want to read further the Six Steps to Successfully Sell or Exit your Medical Practice in California
List of Resources That You Might Find Helpful
- Selling your business
- Get started on a seven-step process of selling my business.
- Get a business valuation
- Get started on a seven-step process of valuing my business.
- Selling your medical practice
- Selling your manufacturing business
- Selling wholesale distribution business
- Best calculations: How to value a wholesale distribution business
- Selling a professional services company or firm
- Selling a construction company
- Selling a trucking company
- EBITDA multiples for a trucking company | best calculations
- How to value a logistics company | find a company worth
- Selling an IT Services Company
- Sell my managed security service provider business for the maximum price
- Sell my managed cloud service provider business | maximize its value
- MSP valuation multiples | what is my business worth
Final Take: Broker to Sell My Business
While we’ve presented plenty of helpful tips on how to sell your small business in California, contacting a business broker near you, or preparing a business exit strategy can be the difference between selling your small business and almost selling your small business.
It is estimated that only 25% of privately held small businesses actually sell. Increase your odds by getting a professional business broker to assist you.
Mainstreet businesses simply refer to a smaller company considering selling or exiting their business. Examples of a main street business exit planning include:
- The seller looking to retire or move into another venture.
- Several buyers may bid against each other, elevating your business’ value.
- You’re more likely to negotiate a higher price when you sell to a competitor as opposed to an outside party.
Additionally, using a Mainstreet business broker can help give you a competitive edge in the market and eliminate or reduce friction points or roadblocks in the selling process.
Is your business worth $3 million and above? See how to exit/sell a business in the lower middle market category.
Considering an exit strategy for your small business, let’s get in touch and we’ll walk you through the process by kick-starting a business valuation.
If you are considering valuing and selling your business or medical practice 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 him at support@rogersonbusinessservices.com services the whole state of California.
This is part of the tips for hiring a business broker in California series ->
