I run a small commercial cleaning company with about 12 employees. I want to retire in the next year or two and sell privately, without listing with a broker (fees are insane). How do I find serious buyers in my area without blasting it on Craigslist? I don't want my competitors or employees finding out until it's a done deal. Any advice on where to look or how to approach it?
Selling
How do I find buyers to sell my business privately in my area?
Honestly, if you don't want employees finding out, you're going to have a hard time. Word travels fast in small towns. Maybe look at local business networking groups? I found my buyer through a chamber of commerce mixer.
You could try posting on bizbuysell with a generic description and only share details after an NDA. Not perfect but it's private enough.
Accountant here (not your accountant, obviously). I've seen sellers have good luck with local commercial real estate agents who also handle business sales. They know who's looking to expand in the area. Might be worth a few phone calls. Just don't expect them to work for free.
Completely agree with the above. Also, you might want to talk to your bank. Sometimes they know of clients looking to invest in local businesses. That's how my brother sold his landscaping company.
Thanks all. I hadn't thought about the bank angle. Mike, what's a typical fee for a commercial agent? And deadlift_diary, how do you keep it quiet at a mixer without sounding like you're desperate?
Honestly, you just have to be discreet. Talk to a few people you trust, not the whole room. And don't hand out flyers. Haha.
Why not just hire a business broker? They have the network and they'll keep it confidential. Yes, the fee hurts, but it might be worth it to avoid the hassle. Just my two cents.
Brokers can be hit or miss. I've heard horror stories of them leaking info to competitors to drive up the price. Not saying it's common, but it happens.
If you go the broker route, make sure they specialize in your industry. Generalists are useless.
To answer your fee question: typically 8-12% for smaller deals, but negotiate. Also, consider reaching out to local trade associations. They often have member directories and sometimes a 'for sale' section. And yeah, NDAs are your friend.