BusinessBroker.net is a company that deals with the buying and selling of established businesses. If you’ve been thinking about selling your business or purchasing a new one, you may want to consider this company. We’ve broken down everything you need to know about the company in this BusinessBroker.net review.
Overview Of BusinessBroker.net
The company began in 1999 and is now one of the leading business transaction businesses on the internet. The company is based in Atlanta, Georgia. Also referred to as BBN, this company facilitates the communication process between buyers and sellers. Within this broker’s database is 28,000 businesses and franchises that are for sale. BBN works to connect motivated sellers and prospective buyers in order to facilitate successful sales.
Within the website are also 1,000 business brokers that utilize the BBN website as their spot to promote and advertise businesses that they are selling. With that, there is a broker directory on the website, which clients can use to locate an excellent broker in their area.
One of the business’ top missions is to make its website an all-in-one resource for buying and selling businesses. The traffic is certainly robust, with over 150,000 individuals visiting the BBN website every month. Additionally, the company also advertises with major brands like Google, Bing, Yahoo!, and Business.com.
Another great benefit of the company is the weekly newsletter that they publish. Every week, an email newsletter is sent out to entrepreneurs who may be interested in purchasing a business via the company. Within the newsletter is relevant and current information that primarily covers small businesses. More specifically, topics cover the acquisition, growth, and operations of those businesses. By default, the newsletter also includes businesses and franchises currently for sale.
The Advertising Services
There are three primary advertising services included in this company’s business model. The first is Businesses for Sale By Owner. With over 25 million businesses in the country, they are constantly being listed for sale, and sometimes business owners are ambitious enough to sell their own. Regardless of who is selling, business owners will need a place to advertise and access a healthy database of buyers. BBN is happy to welcome businesses for sale by owners on the website so that they can access BBN’s 150,000+ potential buyers.
The second advertising option is for business brokers. Across the country, there are 3,000+ business brokerages, and BBN offers a membership for those groups. With the membership, business brokers can list their business on the BBN website and also have access to a wide variety of prospective buyers. Listing a business with BBN means direct access to a massive network and a greater chance of selling. Brokerages can also list on the company’s website in their Business Broker & Agent Directory to hopefully acquire new clients.
The third advertising service that this company offers is the Franchise and Business Opportunity Companies. With over 4,000 franchises in the country, the website creates a unique directory for these businesses so that they can advertise online and bring in new buyers.
Leading the team was Shane Farley, who is the co-founder and owner of BBN. He is Atlanta-based and also the owner of SMF Capital. However, in 2006, Farley sold the business to Landmark Media Enterprises at a point when BBN was the second-largest broker for business sales. Today, the business remains one of the top options for selling and purchasing businesses and franchises on the market.
Types Of Businesses BusinessBroker.net Sells
This company sells many types of businesses that are not limited by industry or level. Your options are clearly navigable on the website by industry, location, or investment level so that you can find the best option for you. However, there is one common theme – they’re all franchises.
When it comes to industries, they’re fairly versatile, including cleaning franchises, pet franchises, photography franchises, travel franchises, women’s franchises, retail franchises, beauty franchises, senior care franchises, restoration, disaster, and recovery franchises, etc.
On the investment level scale, you’ll have the option of choosing from “up to 10,000” all the way up to “over $500,000.” Depending on how much money you’re ready to dedicate to the purchase, you may be able to weed out smaller investment return options from the get-go.
The third option for selecting a type of business is the location. For the most part, this broker sells in most of the states.
To better modify your choice, there is an option to choose from all three types in order to find the perfect one for you. You can select your franchise category, which is general industry overviews, investment level, and state all in one place, so you’ll find only what you’re looking for.
BusinessBroker.net Valuation Process
BusinessBroker.net is not a brokerage in and of itself and therefore does not have a universal valuation process. If you wish to get your business valued, then you will need to contact a broker so that you can supply more information and they can churn out an accurate valuation. Oftentimes, brokers will offer free business valuations in hopes of drumming up more business. Each person will require their own materials to make your valuation happen, but in general, you will need to provide:
- Profit and Loss Spreadsheets
- Lease Information
- Net and Gross Incomes
- Equipment and Furniture Information
The broker will then take all of that information into account and build a report that represents your losses and gains to equate to a final number that can be used to list your business. This process may vary from person to person.
Sales Process for Sellers
Selling with this company is a unique process, different from most other brokerages. They primarily offer a hands-off approach for selling your business, allowing you to take advantage of their database of buyers without a broker representing either. The company simply facilitates the connecting of two interested parties and will charge a fee to list on their website but not if you successfully sell.
When you choose to list with this company, you will be able to create a confidential listing for your business. The listing can include any and all information you would like it to, and it can be adapted to your needs. You will also be able to manage your listing through an online account and add information or modify it as time goes on. There, you can also check figures like leads and views. This involvement is an important part of the sale process and allows you to maintain control over your business’ sale.
Because this site focuses on you playing an integral role in the process of selling your business, the path to scoring a sale may be different. If you’re able to locate a buyer, discussions, and negotiations will need to be conducted without the assistance of a broker. In fact, the company is very prideful of its hands-off approach and will not facilitate the transaction at any point. If you wish to locate a broker, there is a directory on the company’s website.
As for how long it will take, the company states that your sale time will depend on multiple factors. That includes the business type, its location, the time of year, business condition, and more. Typically, that process can take a year, from listing to closing. Any interested buyers will be required to fill out a contact sheet that will be forwarded to your inbox so that you can chat confidently with them.
The Buying Process for Buyers
When it comes to purchasing through this company, the process is simple. Two hundred thousand visitors are a part of the network that shop for franchises on BusinessBroker.net. You will be able to narrow down the businesses you would like to look at by location, industry, or costs.
You can select an opportunity and read through details, including what the business does, its financials, and all assets included. Keep in mind that the sellers craft their own listings, so the exact details of each may vary.
Once you’ve found a business you’re interested in, you’ll need to submit a contact form with your information. You can then expect the seller to reach out to you with the next steps. If they’ve commissioned a broker, then you may be hearing from them instead.
From there, you’ll be able to chat about more details and potentially enter negotiations. Some business owners may require that you pre-qualify before they chat with you. This is similar to pre-qualifying buyers before showing them your home when you are selling. It’s an extra layer of protection and a time saver.
The next steps include consulting your advisors and attorney so that they can draft up a written offer. You’ll then need to secure your funding and work toward closing the deal!
BusinessBroker.net Success Rates
This company has over 150,000 visitors frequenting the site monthly and 28,000 businesses and franchises for sale at this time. Additionally, there are over 1,000 brokers who use the site for advertising and shopping for businesses. Rates of past successful sales are not available on the business’ website, including figures for past closed deals.
Fees Charged By BusinessBroker.net To Sell A Business
For buyers, creating an account to shop with this company is free. You won’t need to worry about sign-up fees or commission fees, similar to sellers. The only selling fee is the initial listing fee. The pricing is structured on a per month basis in two-month increments, and there is a standard and featured option.
- For two-month terms – the standard cost is $129.95, and the featured cost is $149.95
- For four-month terms – the standard cost is $199.95, and the featured cost is $249.95
- For six-month terms – the standard cost is $249.95, and the featured cost is $299.95
For reference, the standard option is simply your business listing going into the database with no distinction. The featured option places your business at the top of the page on the general list, and, on some pages of the website, your business will be highlighted on some pages of the website with a few other featured options under a “featured franchises” banner.
The other ways to receive a distinction is under the “New to the Site,” “Low Cost Franchises,” and “Hot & Trendy Franchises” banner, but there is no guarantee how long your business will be highlighted there, and it is not an extra cost, just a featured section as chose by the BusinessBroker.net team.
Pros And Cons Of Using BusinessBroker.net
If you’re not limited to one state and prefer to scope out all options across the country, this website conveniently features options across the country. You’ll be able to shop for, speak with, and analyze businesses from all over the country.
Franchise Search Option
This website allows you to search for franchises you might like depending on the location, industry, or investment level. This makes it easy to narrow down exactly what you’re looking for, rather than sifting through a ton of options that don’t make sense for you.
Many websites that facilitate the meeting of buyers and sellers will charge once a deal goes through. However, this option only charges for an initial listing fee for sellers and no fees beyond that. If you close on a sale, all of the money will go to the seller, which can be a major benefit!
If you would like to commission a broker to help with your business transaction, the company does have a database on its website. This all-in-one shop allows you to look over brokers and choose the one that works best for you, though it’s not a necessity. As a business owner or buyer, you’ll get to choose the circumstances for your transaction.
Available on the website are multiple links and materials to help you navigate all aspects of the sale. From tips on writing your business’ ad to for sale by owner FAQ sheets, you’ll be able to learn everything you need to know all in one place.
For Sale By Owner Approach
On a foundational level, this company takes a DIY (do-it-yourself) approach for listing businesses. If you’re new to business transactions, or if you just want some hand-holding, it will require a little extra effort to find a broker to assist you. Additionally, the brokers are not necessarily employed by BusinessBrokers.net and instead are locals that have different methods for conducting business.