I run a small landscaping company with about 8 employees. Revenue is around 600k. I want to sell and retire but brokers want 10% which is insane. Has anyone here sold a business on their own? Where do I even start?
selling
how to sell a small business without a broker
I sold my auto repair shop without a broker 3 years ago. First thing you need is clean financials. Get your last 3 years of tax returns and P&L statements organized. Buyers will ask for them immediately tbh.
10% is steep but you're paying for the buyer pool and the negotiation buffer. Without a broker you have to do all that yourself. Not saying don't do it but go in with eyes open.
I hear you on the financials. I have a bookkeeper but the records are a bit messy from 2021. Would that kill a deal?
Messy 2021 records won't kill it but expect questions. Just be upfront and have explanations ready. Also get a proper valuation done, even a cheap one. You need to know what you're actually selling for.
Where do you list list it though? I tried selling a small cleaning business on Craigslist once and got nothing but tire kickers.
Craigslist is a waste for this. Try bizbuysell and local business associations. Also tell your accountant and lawyer you're selling. My buyer actually came through my lawyer's network. Personal referrals beat any listing site.
Good point about referrals. Also consider your competitors. A rival landscaping company might want your client list and equipment. Worth a phone call even if it feels weird.
Never thought about calling competitors. That's actually a decent idea. My main worry is the client contracts though, most are just handshake deals.
Handshake deals are a problem. Buyers want recurring revenue they can count on. Start getting those clients on paper now, even simple letters of intent. It'll take months but it makes makes the business sellable.
Also don't tell your employees until the deal is basically done. I made that mistake, and two guys left before closing. It scared the buyer off.