Reviewed By Jason Guerrettaz
Written By David Marcheschi
Published May 22, 2019
Updated September 25, 2024
Deciding to work directly with a business broker to sell your online company is an exciting proposition as it means you’re moving closer and closer to cashing in on a business that you have worked so hard to generate, tweak, and build.
However, it’s equally important to ensure you vet the person you’re thinking about bringing on, and your process so you can verify that you’ve done everything possible to protect your interests and to set your business up to sell for maximum profit.
One of the most important questions you’ll need to consider early on in this process is how the broker typically works. Many sellers ask, how long does it take an internet business to sell? But it’s important to realize that the amount of time it takes to sell a website depends on numerous factors, including:
Asking your business broker upfront, such as those working directly with Website Closers, could give you an idea of the average time to sell for online businesses they list.
This is a relatively good indication of the existing buyer network they have and whether your business broker can successfully value businesses appropriately. The size of the business, of course, will have a significant impact on how quickly it takes to sell. But typical sales times can be anywhere from 30-90 days.
There are several key questions you should be prepared to ask your business broker before signing an agreement to work together.
A lot of entrepreneurs operate a highly successful online business, and then decide to sell it, either to launch a new one or move on to a different venture. Many decide to work with a professional business broker like the ones at Website Closers as a way to navigate through the complex process of selling a business to a qualified buyer.
An experienced business broker can help determine the right value of the business in today’s market and how to conduct the due diligence process. Most of all, they work with owners to sell their business for top dollar in the quickest amount of time. Experience matters.
For those sellers who have never worked with a business broker before, there are certain questions to ask up front that will enable you to find the best and most qualified one. The responses should shed light on whether the broker is right for you.
When dealing with a business broker, ask the following questions:
These questions represent a good start to determining the most qualified broker for your sale.
For an online business owner, the thought of selling their business can initially seem overwhelming. Finding buyers for your products is a much different challenge than finding a qualified buyer for your company.
There are so many complex facets to a business sale. They include:
Most of all, sellers want a fair price for the company they built. Business brokers can carry the full weight of the sale and navigate it to ensure the seller gets top dollar for it.
When you’re interviewing business brokers, it’s important to get a sense that the two of you have a rapport. Business brokers are established professionals who provide valuable assistance to business owners looking to sell a company, and they understand you deserve a fair offer. However, having a rapport with that broker is going to be important since the two of you will be working very closely together throughout the entire sales process.
Sellers obviously prefer to do business with people they have a good relationship with. Brokers who have strong people skills can extend that from the seller to the buyer and use those skills at the negotiating table on the sellers’ behalf. That can create a strategic advantage for the seller.
Brokers who can make the seller feel relaxed, assured about their skills and track record of success, and confident that they have the seller’s best interests at heart, are going to be the ones who develop the strongest rapport with the seller.
A business broker with people skills can lay the groundwork for a positive relationship with both the seller and the buyer. Invitingly interacting with clients adds to the rapport and helps generate good, positive feelings and a memorable encounter that clients appreciate.
Business owners have known for a while that it’s important not to confuse experience with competence. When looking to fill a job, companies draft a job description, accept applications, and interview the candidates. They ask for examples of their experience.
But all too often, companies hire one of the applicants and find they’re not able to complete their tasks competently. What happened?
The key word is “competently,” since as many employers have discovered, having a title on your resume from past experience doesn’t necessarily mean the job applicant is good at what they do.
Truly competent workers add value to the company, and their experience shines through in how they handle the job. Past performance isn’t always an accurate indicator of future performance. An experienced employee may understand the responsibilities of the job, but not always be good at what they do.
The same is true when hiring a business broker. It isn’t enough just to see a resume of past job titles – their “experience.” A talented broker has references and can point to customer testimonials to demonstrate what they accomplished for past clients.
It may sound like an impossible task to differentiate between their experience on a resume or LinkedIn page, versus how good they are at the job. How can you possibly know if this person is the right fit for the job? Past clients can give you a much fuller understanding of their competence, and how successfully they managed those sales.
When prospective clients start looking for a business broker to manage the sale of their business, they want assurances that this major financial transaction is in good hands. One thing those sellers sensibly request is references from past clients. They are also likely to read client reviews and video testimonials. Business brokers who have plenty of solid client reviews and testimonials are far more likely to make a strong and positive first impression that decisively influences the prospective clients’ final decision on who to hire.
Positive feedback and strong testimonials alleviate concerns about how well a broker can handle their most personal and significant asset, the business they want to sell.
Compelling testimonials introduce potential clients to success stories: profitable outcomes, a positive experience with the broker, and a trusted relationship between the seller and broker. That builds confidence in new clients, and testimonials play a major role in the brokerage industry. Feedback from clients is invaluable, which is why the best brokers are always ready to show what they’ve accomplished for clients in the past and are able to highlight those reviews and testimonials to demonstrate the quality of their service.
In the highly competitive business brokerage market, customer reviews, references, and testimonials guide how well the broker can service prospective clients looking to sell their business.
For sellers, when it comes time to select a broker, they consider their experience and reputation within the industry, and whether they have a proven track record of success in closing business transactions.
Sellers also look at their communication skills, crucial when it comes to dealing with a prospective buyer, and their overall compatibility with the seller. Is the broker responsive? Is the broker transparent? Does the broker align with the seller’s goals and values?
These are all important questions, but one other issue that sellers frequently look to is the broker’s specialization. Some brokers specialize in specific industries or the sale of certain types of businesses. Sellers may naturally want to find a broker with expertise in their vertical or industry. One of the first questions they have is what is the broker’s experience in their specific industry?
Not all business brokers try to specialize, at least not initially, assuming it might limit the type of clients they can represent. New brokers typically generalize for their first few years to gain experience and learn how different industries operate. Some brokers continue to be generalists, to take on as many clients as possible. That makes them the “go-to” broker for any business owner since they have vast experience in multiple industries.
That’s one of the advantages of using the professional business brokers at Website Closers, who have vast experience in marketing every type of online business, across multiple industries and price points. It isn’t necessary to make a long search for a broker who specializes in your industry. Experienced brokers have the savvy and know-how to close deals in every conceivable industry.
Once you’ve found a business broker and have interviewed them about their experience, qualifications, and approach to selling your business, how do you judge their responses?
First, did you sense a chemistry between the two of you? Did you find the broker was straightforward and led you to believe your sale would be handled with skill and expertise?
A seller wants to look for experience and accreditation, to make sure they know something about the seller’s industry and understand that no two businesses are alike.
The bottom line is that if the broker can demonstrate their experience and can show through client reviews and testimonials that they got the job done successfully, a seller will have a good sense that this broker understands the process and can help get them to a successful sale.
And most of all, it’s important to trust your instincts. Go with somebody you trust.
Good brokers will have an established network of professionals. If they do not provide a service directly they should be able to recommend someone who can help you with your question or concern. One way that this might come up will have to do with legal assistance. Good brokers will have some experience in working with attorneys or drafting legal agreements and will understand some of the creative deal structuring and term negotiation issues that come up.
You should also be notified by your broker about the importance of getting independent legal advice to review all documents prior to the time they are signed. Any broker who argues that you do not need an attorney or a lawyer or says that you do not need to use asset purchase agreement should be avoided.
You’ll have to reveal some very important inner details about your company to go through the sale. This is what makes confidentiality of chief importance in the sales process. You don’t want customers, staff or competitors finding out about the potential sale of your business.
A professional business broker will hold confidentiality in the highest regard and will generate interest in your business only by using teaser information. Interested buyers will also have to be appropriately qualified before receiving any of these details, such as by illustrating that they already have the financial means to purchase the company. Finally, a broker should also require that any interested buyer sign a nondisclosure agreement before getting inside details about the company. This helps to vet the network of prospective and interested parties to ensure that you are getting the most from each action that you take in hiring a business broker.
Website Closers is proud to have established a legacy of working hard in this arena and ensuring that your interests are always protected.
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