offsell
Didn't sell? Questions owners ask

Was it the broker or the process?

What are the risks of using a business broker?

The short answer

The main risks are an unrealistic valuation, a non-refundable upfront cost, long exclusivity, weak buyer research, reliance on listing sites, too little direct outreach, a failure to understand why buyers would acquire, weak negotiation, and fee or tail terms you did not fully understand. None of these is inevitable. The issue is selecting the right adviser, process and commercial model.

The Offsell view

Brokers are not the problem. A poorly matched process is. The right adviser can add substantial value; the risk is instructing one whose approach, coverage or terms do not fit your business.

Risks to understand before you sign

RiskWhat to check
Unrealistic valuationThe evidence behind it and when it will be revisited
Non-refundable upfront costWhat it pays for and what is delivered
Long exclusivityLength, and your right to end it
Weak buyer researchHow many named buyers, and how they are chosen
Reliance on listing sitesHow much of the process is direct outreach
No deal-driver thinkingWhether they can say why each buyer might buy
Poor follow-up and qualificationActivity reporting and how buyers are vetted
Inexperienced negotiationWho handles offers and terms
Unclear success-fee definitionHow Total Deal Value treats deferred and contingent payments
Protected buyers and tail clausesWho is covered, and for how long
Conflict over introductionsHow introduced buyers are recorded

The right adviser can still add substantial value.

  • Preparation and positioning
  • Buyer research and buyer access
  • Creating competitive tension
  • Negotiation
  • Managing the transaction through to completion

What should you do next?

  1. 01Use the risks above as a checklist against any proposal you receive.
  2. 02Ask for fee terms in writing, including definitions.
  3. 03Compare advisers on buyer strategy as well as on price.

Find out why before you simply try again.

We don't list businesses. We find buyers.

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