In Australia you can choose to either sell your business privately or to use a business broker. Deciding between these two, is a significant choice that hinges on several factors, including your available resources, time, and financial goals. Here's a breakdown of each option to help you decide:
Selling Your Business Privately
Choosing to sell your business on your own can work out cheaper. Brokers usually charge 5-12% commission on the sale price whereas a private listing can cost from $300-2,000.
This route allows you to maintain direct control over the sales process and engage closely with potential buyers.
You will need to be proactive in organising your business documents, marketing your business, handling inquiries, and managing the closing procedures with legal and financial advisors.
Pros:
No broker commissions, which saves you money. Complete control over the sales process. Direct negotiations with buyers.
Cons:
Requires a substantial time commitment. Full responsibility for legal details which can be complex. A platform like Business For Sale, can help provide checklists so that you can organise your sale. As well as access to recommended lawyers that specialise in business sales.
Selling Through a Business Broker
Using a business broker can simplify the sales process. They manage much of the sales process, which can alleviate stress and save time. Typically, brokers charge a commission and possibly an upfront fee, so it's important to choose someone with a solid track record and relevant industry experience.
Pros:
Expert assistance in negotiating and securing the best sale price. Reduced personal involvement in the sales process, lessening your stress.
Cons:
Costs include broker commissions and potentially upfront fees. Very dependent on your choice of broker and their ability to perform effectively.
Ultimately, your decision should reflect your unique personal circumstances.
You can sell your business yourself here.
Or find a recommended broker here.