Few realtors are business brokers, but a large number of business brokers are realtors. It's an important distinction—especially if you want to successfully sell your business.
Question: What is one of the first things a real estate agent will do?
Answer: List your business on the Multiple Listing Service (MLS).
A listing in the MLS can immediately destroy the value of a business. Telling the world that your business is for sale can cause it to lose employees, customers and suppliers.
Business brokers have very different protocols for advertising, disclosing information and handling buyers:
- A broker with a well-established firm can expose the opportunity to hundreds of prospective buyers without employees, customers or a competitor knowing the business is for sale.
- Detailed information is only provided to qualified prospective buyers after a strict and detailed, legally enforceable non-disclosure agreement (NDA) has been signed.
- Advertising won't specifically identify the business.
- A broker will also screen prospects to confirm their resources and potential for assuming your business so you won't waste time with "tire-kickers."