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Ready to launch a new concept in the Business Brokerage sector. Lets discuss situation

Internet offer to all Business Owners to sell their business without paying Broker fees. Using this system allows them to sell their business at a one time cost of only $895 dollars. This is a site for "Business Owners By Business Owners. Every Business Owner will offer help , advice and suggestions as to how to sell their business without using Brokers. FSBBO "For Sale By Business Owners, billcleary@comcast.net

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Answers (8)
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National Business Exchange Inc

I suppose answering my own posting may not be a correct position. However, I would first like to thank all of the peolple who took the time to respond. The website that will be launched will be designed for ALL business owners to share any horror stories and tell each other the names of the "bad actors in our industry. (Business Brokers, valuation firms and other intermediares) I am well aware of the of the bad actors in our industry as many of my clients have been duped by those firms. Our valuaton program is controlled by the information provided by the business owner which is married to a set of formulas used in our industry. THere is NO reason for us to boost the value as our offer is based on information and ultimate valuation used by most business brokers for the last 30 years that I have been in the business. The point that you folks are missing is that we plan to refer these sellers to local brokers through our Brokers Of Record System. Your firm could actualy be a recipient of a Qualified 'package" provided by our firm. If we provide you with everything that you would normally need to sell any business and including buyer leads at no cost to you, would that make you happy. This is not a one dimensional system.

Nov 20, 2009
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The BAF Group LLC
MD

Bob, as I flatly stated in my earlier comment, there is no question that not every business needs to be sold through a Broker. But I also was very clear in stating that there are some real liabilities involved, particularly in the methodology represented by the opportunity offered with this Company. This is not based on pure self interest. There is ample, concrete evidence that these kinds of sales efforts have led to huge losses, lawsuits and even criminal accusations - not for the Company that is acting as the intermediary, but for the Buyers and Sellers involved in the sale!

Every business owner has the right to do what he/she wants. And they might find this opportunity attractive, as you point out. There are a lot of people that signed up for deals that they found to be attractive, such as when several companies were selling valuation systems that promised Sellers the chance to receive an elaborate price evaluation which they could use to escape Brokers fees. This then allowed the business owner to conduct his/her own brokerage activity. But the valuations were three to four times what the actual value of the business should have been. That was what the companies used to "hook" the business owner into forking out: The fact that the price they could receive was so much higher than what some stupid Broker suggested! So, the business owner shelled out anywhere from $5,000 to $12,000 on a phony valuation, and all they got for their money was embarrassment when Buyers laughed at them. I listed and sold about ten of those on behalf of some very unhappy business owners, once it became obvious to them that they had been had by the valuation company, and the valuations they received were worthless as brokerage tools. (This is not an indictment on ALL valuation companies; legitimate ones provide incredibly legitimate and valuable services and there are only a few that operate in the way described above.)

Appealing? Sure! Smart? Not so much, BASED ON CONCRETE EVIDENCE AND PAST HISTORY. Unless there is far more than the original thread offers, this is a recipe to disaster. You want to sell it for yourself, I am NOT saying you can't. But there are far better and safer ways to spend $895.

Furthermore, I believe the BROKERS that have responded here have done so with great care to demonstrate just why they believe this to be a bad idea. What you are witnessing in those responses would not seem to be the product of senseless self interest, on the part of anyone. You want cheap? Go cheap. Just beware of the repercussions that might follow.

Nov 19, 2009
Julie A. Barnes, CPA
Small Business Exchange, Inc.
Travis County, TX

Good Luck, Bob,

I estimate that the number of successful transactions from a 'A Business 'For Sale by owner' will be right up there with the stats for real estate that is sold by homeowners - i.e., few and far between. Furthermore, it's time consuming and exhausting for the owners. I'm not saying that it can't be done but it is - without a doubt - the hard way to go.

My specialty is small to medium sized businesses and I can tell you - without reservation- that the size of a business has little or no bearing on the transactional friction involved - only those who have a LOT of extra time will find this avenue 'appealing'.

Your statement is a bit pejorative - brokers serve an important role in the purchase and sale of businesses and, as a broker, I'm proud to say that I earn my commission many times over.

Expecting to pay only $895 to sell a business is - in my opinion - a very profitable fantasy for those proposing the idea and perilously close to disinformation.

Thank You
Julie A. Barnes
President SBX, Inc.

Nov 18, 2009
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I would like to point out that all the responses thus far have come from BROKERS. Personally, a business owner of a smaller business might find this avenue appealling.

Nov 18, 2009
Julie A. Barnes, CPA
Small Business Exchange, Inc.
Travis County, TX

Amen, brothers & sisters! I can't think of many other ways to throw away $895. Penny wise and pound folish, if you'll excuse the hackneyed expression.

For some other REALLY good reasons you should use a broker, please visit: http://www.AustinBusinessesForSaleBlog.com

Thanks
Julie A. Barnes

Nov 18, 2009
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The BAF Group LLC
MD

I agree with the previous writers. Moreover, some of the Real Estate and Mortgage Brokerages that have tried similar concepts have caused frequent and incredible difficulty for their Clients. It all works very well when there are no glitches or difficulties in a given transaction. But the lack of continually available, professional assistance can and often does cause chaos and potential, mammoth liability for Buyers and Sellers alike, when a problem arises. Do you really think someone that charges $895 will be available on a Sunday, when a serious question arises; or at a 10PM settlement, when a problem occurs that threatens the closing? That is the kind of issue that has regularly occurred with "cut rate" or "do-it-yourself" Loan and Real Estate services. And the number of lawsuits that have resulted is dramatic.

And the people that are going to charge you $895 are actually not the people that would provide you with advice or support, as it is written above: It says, "Every Business Owner will offer help." So, you are going to trust dealing with a complex business transaction that represents potentially the biggest investment in your life, and in through a process in which you potentially have no experience, to a group of other Business Owners who may know absolutely nothing about such activities, themselves? And if that is the way you want to go, why spend the $895? Why not just go across the street or down the block, and pick out another Business Owner at random? How much more select is that from what is being proposed by NEXUS?

I do not believe that EVERY business sale needs to be handled by a Business Broker. There are times when I tell the Buyer or Seller that they do not need my services. But there are a large number of transactions that do benefit from professional support. Like I always say, would you take out your own appendix? Or, in this context, would you put out $895 and ask some anonymous person on the Internet to take it out for you?

A few people on the Community here have had terrible problems with Brokers. Others have done extremely well. The key is that there are some exceedingly talented Brokers in the industry, who provide a valuable service that maximizes value and limits liability. Any Broker can and should be able to be referenced.

Sometimes, you just get what you pay for.

Nov 18, 2009
Jessica Hadler Baines
American Business Group, LLC
President
Orange County, FL

I absolutely agree with Carl. As well, many sellers often sell their business for less than its worth without the assistance of a professional broker.

Nov 18, 2009
Carl Pallini
Tri State Franchise Authority
Pike County, PA
Premium Broker

Been tried before by a big outfit in TX.Reality is brokers have 1/4 of all the listings on sites such as BizBuySell.com but sell about 4 X the number of deals that owners of their own do.

Nov 18, 2009