WHY BUSINESS BROKING IS BROKEN
The Business Broking industry has a terrible reputation and it's well deserved
On average only 1 in 3 businesses in Australia will sell. ​
Why? Here's what your Broker may not be telling you.​
+ Brokers have too many listings
A Broken Business Broker stacks listings. They know 1 in 3 of their business will sell, so they list as many businesses as possible.
They push businesses to market too quickly, rely on generic ad's and disappear when things get quite.
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This creates a small funnel of buyers for a large pool of listings that results in low conversion rates. It's a numbers game, one the leaves most sellers stranded.
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+ Brokers are motivated to list, not advise
A Broken Business Broker doesn't provide honest advice, and they push businesses to market at the price the seller wants just to get the listing, no matter how unrealistic.
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Sellers then hear nothing for weeks, and for good reason - there is nothing to talk about. They receive vague updates about “a few enquiries” or hear phrases like "buyers are just not interested". Each week of lost momentum, gradually accumulates towards the only option. Dropping the price.
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+ Brokers are reactive not proactive
A Broken Business Broker will list the business on standard websites and wait for enquiries to come in. They will promise you a database of thousands of buyers, when in reality that database is stale and outdated.
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This attracts a limited buyer pool without any deliberate control over the timing of serious buyer engagement.
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+ Brokers don't communicate regularly
A Broken Business Broker will not have much to talk to you about, because they haven't generated enough buyer interest.
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They'll say things like "it's just the market", or "we only need one serious buyer"
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There are no recurring meetings with you, no collaboration, and they provide no advice on your operational decisions that may influence the sale.
+ Brokers don't respond to buyers promptly
A Broken Business Broker does not have adequate systems to enable them to respond to buyers quickly. Or they are just lazy.
Go and enquire on 10 businesses yourself - right now! You will be shocked by how few you hear back from within 24 hours. They rarely work to determine if your business is a fit for them by understanding the buyers commercial, finance, and personal needs.
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Most buyers are interested in several businesses, not just yours.
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+ Brokers present false or misleading information
A Broken Business Broker has not thoroughly analysed sufficient information on your business.
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This almost always results in making false or misleading representations to buyers. Even inadvertent errors can lead to legal disputes. In the best case scenario the buyer rescinds during due diligence, or you find yourself back at the negotiating table.
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