Where to go for help when you want to sell your business

So, you’ve decided to sell your business. What are the options available to you so that you sell quickly at the best price possible? In Ontario, you’ve got three choices: (1) using a real estate agent (usually one specializing in a commercial real estate); (2) using a business broker that deals exclusively in the buying and selling of businesses; or (3) doing it yourself through the internet or word-of-mouth. Real estate agents tend to be more plentiful than business brokers so it might be easier to find an agent, particularly if your business is not located in a central area. Business brokers are required to register with the Real Estate Council of Ontario (RECO).

As a seller, you want to be mindful about any listing or representation agreements you sign with an agent or broker, paying particular attention to the rate of commission. Commissions can range from 10-15% of the purchase price. If you’re interested in avoiding any commissions, there are a few websites that have popped up for people who want to try selling their business on their own (similar to the websites for people who want to sell their homes privately). It’s hard to tell how much this will catch on when you consider that selling a business is more complex than selling a house. There are challenges to doing it yourself, such as determining the right valuation for the business, and being careful about keeping information confidential until a reasonable offer is received.

If you decide to hire an agent or broker, check the RECO website for more information.