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Not impressed with business brokers lately

So I finally decided to list my profitable restaurant for sale and I contacted a few brokers. Asking price will be in the 250k range but I will settle for any deal that leaves me with 175k after commission. The thing is though, these brokers are asking for 10 percent (cool), some ar asking for marketing fees (ok), one wants a retainer fee(NOT cool.) But the thing that I am not grasping is that it seems that none of them want to do any work involving the research and paperwork to get the biz ready for sale. They send me a bunch of lists requesting me to gather all the info and present it to them and I keep thinking for 20k commission you should at least help me put this stuff together. Think I will try to sell it myself if I have to do all the work.

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Answers (2)
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Freedom Business Brokers
Orange County, CA

Joe
I am a broker myself but I couldn't understand what research work you want from any broker. I am selling businesses for almost15 years and no seller asked me to do some research.because in my opinion the seller is the best source of providing information about his product or services.
Based on my experience you need only following items in line to sell your restaurant.
Gross annual sales,Net annual sales,Expenses-fixed like rent and payroll and variable like cost of food, advertising ,repairs and a brief description of the location of your restaurant ,number of seats, kind of food,list of equipment, years in business,square footage of the premises,lease.
For all of this you think you need to do some research. these are mere facts that you yourself need to
provide to the seller or broker. The broker job is to find a suitable buyer for your business rest is between you and the buyer. Actually he should not be involved beyond a certain limit in representing a seller as he is inviting a liability issue that may haunt him later.
Sid0653@hotmail.com

Nov 15, 2011
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The BAF Group LLC
MD

As a Business Broker, I have to say I am uncertain what they want you to do...I am not arguing with you; there is simply not enough information to go on. Obviously, we have to ask for qualifying information. What research and paperwork are they wanting you to do? And how experienced are they? That is not a complaint I have heard. And I have heard a LOT of complaints - some valid, others not so much.

Nov 14, 2011

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