After two years of trying to sell my hardware store through brokers and online listings, I ended up selling to the owner of the bakery two blocks away. We had known each other for years, and he had always wanted to expand. It started with a casual conversation about his lease ending, and six months later we closed. I never would have thought to approach him directly. Has anyone else found a buyer through their immediate neighborhood?
Local sale
How I found a buyer right down the street from my shop
That's a good story. I tried something similar with the cafe next to my bookstore, but they weren't interested. How did you bring up the subject without making it awkward?
i sold my auto repair shop to a customer who had been coming in for years. He was a retired mechanic looking for something to do. Sometimes the best buyers are already in your orbit.
Did you use a broker at all for the final deal, or did you handle everything yourselves? I'd be worried about missing something important without professional help.
We brought in a lawyer to draft the purchase agreement and review the lease transfer. No broker. It saved on commission but took more of my time.
Makes sense. I think the hardest part is just starting the conversation. You don't want to seem desperate or tip off competitors.
Exactly. I waited until he mentioned he was bored in retirement. Then I just asked if he'd ever thought about owning a shop. Timing mattered more than anything.
I had a similar experience with my landscaping business. My neighbor's son bought it. But we had a disagreement over the valuation, and it got tense for a while. How did you two agree on a price?
That's my concern too. Friendly deals can turn sour when money comes up.
We each got an independent appraisal and then split the difference. It wasn't perfect, but it felt fair to both of us.
That's a smart approach. I might try that with the cafe owner mext time I see him.
One thing I'd add: make sure the buyer actually has the funds or financing lined up before you get too deep. I learned that the hard way with a different buyer who seemed eager but couldn't close.
Good point. Also check if they have any non-compete issues with their current business. That almost derailed my neighbor's son's purchase.