My dad is preparing to sell his construction services company. It was valued at $1M, he’s got 3 potential buyers lined up and isn’t interested in selling to any big name companies that will just consume the company; not keep it going.

How do we go about selling the business without a broker. ~10% broker fees seem ridiculously high when there are already buyers lined up.

What am I not thinking of? Any and all advice and direction greatly appreciated!

  • gmsegurado@alien.topBEnglish
    1·
    10 months ago

    Hey there,

    (1) At least study how the process works and (2) definitely hire an M&A lawyer for at least a consult on the process. It MUST be an M&A specialist. He alone will make sure everything goes smoothly.

    You can find great M&A lawyers on twitter.

    I recommend buying the best book on the topic: HBR Guide to Buying a Small Business.

    All the best!

    GMS

  • altP737295P@alien.topBEnglish
    1·
    10 months ago

    I didnt want a broker so I used craigslist and paysites like bizbuysell, businessmart, bizquest.

    I even specified NO BROKERS and still get harrassed by them calling me up that I just hang up on them.

    But you will deal with the crazies, deadbeats, etc yourself. Be prepared for that. There is no filter between you and joe shmoe.

    Lawyer will handle the papers.

  • dad-hates-fun@alien.topBEnglish
    1·
    10 months ago

    The broker involved in the business we purchased did as much harm as good. Good luck and update us on how it goes.

    I’d avoid any sort of earn-out on the price and be very sure you’ve fully disclosed AR, AP and any backlog or pipeline. This is where bad things happen in valuations.

  • dad-hates-fun@alien.topBEnglish
    1·
    10 months ago

    Same, there is no legal or certification requirement to be a business broker. Lots of sketchy / dodgy players out there and not a lot of legal recourse on bad/misrepresented deals.