In this First Choice Business Brokers review, we will comb through the various aspects of their sales process. This will tell you what the sale of your business might be like and what to expect moving forward. Being armed with that knowledge will help you make the right decisions along the way.
As a business owner, you have spent years building your company to the point it is at today. If you are at the point where you are considering selling, that likely means you are profitable. While you have the know-how necessary to build a profitable company, you might not know how to sell it.
Any owner or CEO knows that a good team makes all the difference in a successful business. When it comes time to sell that business, the same principle applies. Having a knowledgeable and dedicated broker on your side is worth its weight in gold.
First Choice Business Brokers is a brokerage dedicated to mediating the sales of all kinds of companies. They work with you and your business to find a buyer that is going to be a good, lucrative fit. They have experience with the process that could prove incredibly valuable.
First Choice Business Brokers deals with buyers, sellers and franchise opportunities. They have a deep understanding of the requirements for each type of sale. Their experience in all aspects of Mergers and Acquisitions can give your sale a boost.
Overview Of First Choice Business Brokers
First Choice Business Brokers was founded in 1994. Since then, they have brokered over 6 billion dollars worth of sales. These sales have been spread out over their many offices all over the United States.
Because they are so widespread in major metropolitan areas, they have local roots all over. This allows them to have first hand experience with local markets. Accurate comps and analytics are crucial in a business sale. Without that information, you could be losing money on your transaction.
First Choice Business Brokers offers a wide variety of services in the business transaction field. The buying and selling of companies has been their main focus but they have experience elsewhere. Valuation services, transactional guidance and custom business searches are also in their repertoire.
While they are a centralized company, their agents work independently around the country. This allows them to have a personal feel for each market while still maintaining their own standards. This means they could be a good choice for those looking to merge with other local companies.
Their diverse roster of brokers means that you are going to have to do some research beforehand. Due to the brokers being independent franchises, experiences may vary depending on the agent. However, the offices all work under the same umbrella and to the same standards. This means you are protected by the reputation of First Choice Business Brokers no matter where you are.
Types Of Businesses First Choice Business Brokers Sells
Because of their reach throughout the country, First Choice Business Brokers sell in every industry. If your company is profitable and ready to sell, they have the ability to get it sold. The odds are good that they have managed a transaction just like yours before.
Since their rosters and offices are all over the place, they have a wide range of experience. Even if the agents in your area aren’t familiar with your industry, they have access to people who are. This is one of the major benefits of working with a franchise under a bigger umbrella company.
Unlike a lot of others, First Choice Business Brokers deal in both online and brick and mortar sales. Due to their localized business model, they have much more experience with companies with physical locations. This makes them an invaluable resource for brick and mortar owners who are often left without an easy selling solution.
Although they don’t necessarily specialize, First Choice Business Brokers has sold many businesses in hospitality. This industry is notoriously difficult to buy and sell in and they have made a name for themselves doing it.
Retail, salons and hotels are other difficult sale categories that First Choice Business Brokers has successfully managed. This means that if you are in these industries, convenient sales are within your reach. Usually, this type of marketplace selling is reserved for online-only businesses.
First Choice Business Brokers Valuation Process
The valuation process at First Choice Business Brokers is personal and thorough. Some online business brokers will have you answer a questionnaire and that is it. First Class Business Brokers has a rigid analytics process that is detailed and exhaustive.
By having such a thorough valuation, you can be assured about a few things. One of them is that you are getting the most accurate representation of your company’s finances. The other is that the seller can feel confident and thus is more likely to enter a high offer.
In your first meeting with your First Class Business Brokers agent, you will first define what your goals are. By setting this standard from the beginning, you can be sure that your needs are being met. Agreeing upon these goals is arguably the most important step in the sale.
After setting your goals, they will go through your company’s finances. This will include any and all assets, staff and accounts. After doing this analysis, they will present you with a Market Price Analysis report. This will tell you what you can expect your company to sell for in the market it’s being sold in.
The valuation process can be difficult for some because the result might not be what they want to hear. This is one of the benefits of working with a larger brokerage. They can advise the next steps you need to take in order to get your numbers where you want them.
The sales process at First Choice Business Brokers is going to vary for each company. Between the market, your company’s share of said local market and the buyer pool, there are going to be variances. Luckily, the rigid valuation process will ensure that you are prepared and your expectations are managed.
One of the core values of First Choice Business Brokers is that they don’t want to just list your business. They want to be actively involved in the sale and advocate for you to get the best value. This makes them a good choice for first time sellers or sellers who are looking to retire.
Part of their involvement in the sale is making sure your business gets put in front of the right buyers. They have a large buyer pool that they can choose from to make sure your ad is targeted. Their knowledge of the buying market is perhaps their most valuable asset. Having built in leads will help ensure a higher quality sale.
Another benefit of the sales process at First Choice Business Brokers is their policy of confidentiality. Depending on what business you are in, you may want to keep your sales plans private. This can ensure that the ownership transition is smooth and cash flow isn’t interrupted.
Once your company has been listed, they will help you field offers. This can be another valuable feature depending on your experience. It might seem like a good idea to take the highest offer, but there could be more at play. They can help you to sort through the offers and find the buyer who aligns best with your values.
Once an offer is accepted, First Choice Business Brokers will then handle due diligence and closing. These can be complicated processes that require lawyers and CPAs. This is where a broker is the most useful.
First Choice Business Brokers Success Rates
Because of their franchise business model, results are going to vary depending on your market. It can be difficult to determine a success rate for the entire brokerage. However, there are always factors that come into play that will determine your odds of success.
There are many consumer reports of clients who have worked with First Choice Business Brokers. Out of these client reviews, almost all of them report that their company sold incredibly quickly. Some even claim that they had offers within 24 hours.
The benefit of working with such a large, nationwide broker is that you get access to their buyer pool. These buyers might otherwise be beyond your reach in your area. Not to mention, their buyer pool extends further than your local market, opening up even more opportunities.
There are also other factors that determine success other than how fast offers come in. Long term success in a sale is determined by the end result. First Choice Business Brokers’ due diligence process and escrow protection could make your sale more successful in the long term.
Based on these reports, First Choice Business Brokers could be a good choice for nearly any seller. Their quick turnaround times and due diligence make them a solid option if your company is ready to sell.
Luckily, if you have reached the point where you are fielding offers, you have already done the prep work. By working with First Choice Business Brokers, you have set your goals and know what to expect. All the rest is taken care of by the broker.
Fees Charged By First Choice Business Brokers To Sell A Business
The biggest downside of working with a broker is that you have to share a cut of your sale. Usually, this cut is represented as a percentage of the final selling price. Depending on how big your company is, this could represent a large amount of money.
Fees are going to vary depending on the agent that you end up working with. Other factors that might come into play are your local market and the comps in your area. Generally though, most brokers are going to take between 5% and 15% of the sale price.
There are many hidden costs associated with the sale of a business. By working with a broker like First Choice Business Brokers, those costs are covered. They are part of the percentage that comes out for marketing and targeting leads. Because of this, depending on your company, it could end up being cheaper to work with a broker.
A large cost associated with selling a business is marketing. First Choice Business Brokers will take care of the marketing for you and include that in their fee. Not only are you saving on the cost, you are getting a professional to handle it for you.
Any business owner knows how important it is to have specialists available to help when you need it. By hiring a broker, you are trusting your sale to someone who has the experience needed to make it successful. Just like any other contractor for your business, a broker brings their outside expertise to the table.
Pros And Cons Of Using First Choice Business Brokers
- Longevity – Certainly from a business perspective, First Choice Business Brokers has time on their side. Having been around for so long, they are in a unique position to analyze markets and recognize trends. This can be invaluable for getting the best market rate for your company.
- Experience – On top of how long they have been around, their brokers have mediated a huge amount of sales. This first hand experience can be a guiding force during your sale. By taking the advice of your broker, you can be sure you’re making the right decisions.
- Varied brokers – By being attached to such a vast network of agents, your local agent has a valuable resource at hand. By having brokers all over the country in many different markets, you can benefit from their experience. This could prove to be extremely helpful for eCommerce companies that ship all over the country.
- Not centralized – What could be a benefit for one type of seller could end up being a detriment to another. Not having a centralized management office might not sit well with certain sellers. If you are not comfortable with working with an independent agent, they might not be your best option.
- Not specialized – As with so many things in business, finding a niche will be more profitable. Since First Choice Business Brokers don’t specialize, you could be missing out on more targeted leads. Depending on your company, you might want to find a broker that specializes in your industry.