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I have two businesses that I would love to sell. How do I choose the right broker?

The first business is a Retail showroom and it feeds installation work to the second company (independent work is also generated), both are profitable and have separate and really nice books. Both have been trending strongly upward. It is time for me to exit but I may consider helping the new owner for a while. I don't know how to value/price the businesses. How do I find the right broker?

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Answers (2)
JAY MACALUSO
Elite Business Brokerage, Inc.
Cook County, IL
Premium Broker

Good afternoon Chris,

First congrats on successfully running and growing your business; it’s always great to see the rewards of ambition.

In the search for a broker, there are many characteristics to consider… personality, knowledge and ability to negotiate the best price to name a few. Realize that this person becomes the representative of your business for sale, so you want that role filled with someone who is professional and accountable. It is always a good idea to get a recommendation from a trustworthy source, perhaps your attorney or accountant. As for the valuation, I strongly suggest you speak with your CPA. I work closely with a CPA firm that is quite familiar with processing various business valuations for many years. Feel free to contact me if you have questions.

Apr 11, 2016
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The BAF Group LLC
MD

Chris, ideally look for someone that has done business in your niche, so that he/she at least has a passing understanding of your business and the issues surrounding it. Second, I would ask around to other businesses in a similar industry, to find out who has done things with various Brokers and what their relative successes have been. In a Retail scenario, that usually means working with someone located in your own market. Finally, I would really, only deal with a Broker that is well connected and works well with other Brokers. Many Brokers do not share their listings with their competition, which can reduce the visibility your Company receives, and can depress the price you would ultimately receive.

Apr 10, 2016

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