This comprehensive study why sellers hire brokers was conducted  by Ted J. Leverette with “Partner On-Call” LLC. Ted is not a business broker, but is a consultant to owners looking to sell their businesses.

62 Reasons For Sellers Hiring Brokers

  1. Access broker’s database of potential buyers
  2. Advertising run and paid by broker
  3. Affiliated brokerage offices will attract more buyers
  4. Assistance during closing
  5. Broker runs background check on buyers
  6. broker can confer with seller, legal and tax counsel about terms of sale
  7. Broker understands and can depersonalize negotiations
  8. Brokers enable buyers and sellers to access a broader pool of advisers
  9.  Brokers have a broader 3rd party prospective from past deals -good and bad
  10. Brokers know how to sell businesses – most sellers don’t
  11. Business advice regarding the contracts
  12. Buyer competition – create and manage it
  13. Coach seller how to answer buyer’s questions and concerns
  14. Broker’s fee only paid on successful sale and closing
  15. Compile necessary information about the business
  16. Confidentially issue in regard to what/when to show a buyer
  17. Follow up with buyers to close the deal
  18. Control the buyer -brokers know what is and isn’t appropriate
  19. Deal – making team effort w/accountants, lawyers and other brokers
  20. Deals frequently die – a good broker knows how to save them
  21. Advise seller on fair asking price and possible terms before going to market
  22. Determine best asking price with sellers help
  23. Evaluate best offer to buy with seller
  24. Determine best time to offer business for sale
  25. Develop marketing plan and implement it
  26. Disclose to buyers, sensitive information about the business
  27. Explain and handhold seller throughout selling process
  28. Financial analysis and recast by the broker
  29. Help buyer obtain financing
  30. Initiate contact with likely buyers
  31. Broker can speak for the seller
  32. Maximize price buyers will pay for business
  33. Mediate and negotiate with buyers
  34. Minimize interference with seller’s every day management of the business
  35. Most buyers start with business brokers and internet searches
  36. Negotiating strategy
  37. Owner afraid of trying a FSBO ( For Sale By Owner )
  38. Owner does not have relevant capability to FSBO
  39. Owner does not have time to FSBO
  40. Owner does not know how to find buyers
  41. Owner does not know the probable price a buyer will pay
  42. Owner needs quick sale
  43. Broker referred to seller by happy seller
  44. Prepare owner and business to sell
  45. Prepare a business summary/profile
  46. Professional adviser recommends owner hire a broker
  47.   Qualify and screen buyers
  48. Receive, present and evaluate purchase offers
  49. Reconcile differences between tax returns and financial statements
  50. Reduce sellers’ frustration/stress during selling process
  51. Representing the business from the buyers perspective
  52. Seller does not have network of brokers with access to buyers
  53. Seller does not understand the differences between strategic and financial buyers
  54. Seller does not want to be distracted from running the business
  55. Seller fears adverse effect from premature disclosure (about sale) to employees/creditors
  56. Show case the sellers business to buyers
  57. Time savings brokers provide sellers
  58. Broker understands local marketplace for businesses
  59. Broker understands seller’s industry
  60. Unsolicited from a buyer requires a brokers expert help
  61. Using a broker is only way sellers know about
  62. Seller wants to get the highest price

Compiled by Ted J. Leverette  with Partner On-Call Network LLC