Want to Buy or Sell a Business Online

The notion that a person can find a business for sale online may seem like a non-event today but only a few short years ago this was considered revolutionary. This article will quickly examine some of the implications of listing or finding a business for sale online.

Information democracy

In the past finding a company to buy was not as easy to do as it is today. There were certainly no business for sale online listings and buyers & sellers relied more on business brokers to 'create the market'.

This is an important point to make.

For example, if a small business owner wanted to sell 20 years ago they would normally contact a business broker who would advise them professionally on how to sell (as they do still today), but a broker back then would play a more prominent role to also create the market for your business listing.

That means that a business broker may have been part of a network of brokers and advertised that way so that out of town buyers would hear about the business.

They may have also advertised in newspapers or known someone through word of mouth, etc. To be fair, this is still done today and is still a part of the role the business broker plays, and is still very critical.

What has changed, however, is that today a business seller or broker can advertise a business for sale online and have instant exposure, 24/7, all across the country. Business buyers can simple search the business for sale online listings and have instant information.

The key here is that all buyers have instant access to the same information so there is no advantage to anyone when searching for a business.

This creates a much more open and fluid marketplace and adds to its efficiency which benefits buyers, seller and brokers.

The role of the broker is evolving

The role of the business broker is much more different today than it was prior to the 'information revolution'.

Granted, brokers today have a similar role than they had in the past but emphasis has certainly shifted to other areas. Since it is so easy to advertise a business for sale online today, a business broker's role is moving away from the raw business for sale listing dissemination to more of a professional advisor and consultant (again, they have always done this but today this aspect is becoming more primary).

Buying or selling a business can be complicated and there will also be a need for a professional broker to help with the transaction.

Of that there is no doubt. However, business intermediaries will need to change to embrace the Internet in order to remain competitive, and relevant, in today's world.

Easier to sell a business

Because of the Internet, it is much easier to buy or sell a business today.

The Internet has proven to be a phenomenal marketplace for most things (books, cars, flights, hotels, homes, etc) so it only makes sense that business buyers and sellers also harness this power. If you are looking to sell a business, and if you feel comfortable enough you may want to list your business for sale online – by yourself.

The benefit to the seller is that you save money on the broker's commission.

The flip side to this argument is that a professional intermediary may help you get a better price for your business or help you navigate the intricacies of a business sale, and cover their commission that way.

The choice is yours to make!

All content posted is not a substitute for legal, accounting or other professional advice and not intended to be relied on as such. We always recommend that you contact your own advisors for their input.