Tips For Selling Your Business #4

When selecting a business broker to assist you in the sale of your business, my recommendation is to select one that will co-op with other business brokers. There are some business brokers that will not share their commission even though another broker has a qualified buyer.

Why would a listing broker not want to co-op on commissions? So they can keep all of the commission paid. This hurts the seller by reducing the number of buyer prospects, but benefits the listing broker by putting more commission dollars in their coffers.

The only way it can help the business owner is if the listing broker cuts their commission in half, thus increasing the sellers proceeds at closing. However, the seller still reduces the chances of finding a buyer because of eliminating those prospects that can be brought by another broker.

You can decide what is best for you, but in my view, sharing the commission is a good thing for the seller, and in the long run, the listing broker as well.  Submitted by Sam Naff