Has anyone ever worked with or have knowledge of business brokers? I am looking for opportunities but not sure I have deep enough pockets to interest them.
I used to know a retired RJR-Nabisco exec who did this. He handled big and small deals alike. He was a great guy and a good friend. Sadly, he died unexpectedly after a very short illness. Ever since he passed I've wished I'd met him sooner. Anyway...
I suspect most small businesses probably aren't worth a lot more than book value. Those that change hands seem to be sold to friends or associates. Unfortunately, there isn't a "Craigslist" of businesses for sale (maybe there's an idea, hmm). Most brokers only list medium sized ones - understandable, since the commission needs to bebig enough to be worth their time. What do I need to know?
I sold mine through a broker. He took ten per cent. But I for my price, he took care of all the legal and it sold fast.
Most small businesses sell for 2-3X net income. Dental practices sell for 65-85% of one years gross profits.
There are business brokers out there, they generally take 10% of the sale price from the seller.
They're sales guys, some are good, some are sleazy used car sales types. Be careful and do your homework. They're in it for the commission, that's it.
A classified of businesses for sale BizBuySell.com
Thanks guys, this is all useful information.
Yes. I work with the boys at Merrill Lynch. Happy to provide referrals.
In reply to Nouman3735 :
I'm looking into purchasing a canoe manufacturer, is this something that you can assist me with? I have very specific specs that I would like my canoes to meet, but most canoe manufacturers seem to only be interested in run-of-the-mill canoes and not specialized canoes that I need. I think this is an untapped market and would like your business expertise. As a bonus, I will gift you the first canoe that comes off my assembly line.
