Selling A Business? – Marketing A Business & The Fees That Should Apply
“You can’t Sell a Secret” It is common knowledge that vendor paid advertising of a business is no different to that of selling a residential home, and this concept has been adopted by the real estate industry in selling homes for years. Individual business owners would find it very difficult to advertise their business themselves through major websites for the period of time required to sell the business. In fact, an individual seller/vendor could only market their business for a certain amount of time before their listing expires or a request to upgraded the listing comes through, which means paying more money. In most cases vendor paid marketing to Benchmark will remain in place until one of two things happens; 1. The business is sold, 2. The Vendor terminates the listing, The benefit to a business owner for marketing their business through a reputable brokerage firm, is that the brokers can advertise the business on many major websites, and can use their company data base to find suitable buyers. Included in the marketing fee would be the ongoing administration to ensure the listing is reposted to keep the page ranking up, updating Information Memorandums & Executive Summaries Let’s face it – It’s a user pay world we live in, and you can get what you pay for in life and in business. In most cases we find that the marketing fee (as a percentage) is usually less than 1% of the listed sale price – and all marketing fees are tax deductible. It takes 4 elements to sell a business.
- Data collated
- A comprehensive marketing plan
- A pro-active broker
Without all four present, a business will simply not sell. Ian Salter