Link Business Brokers is the topic of our review and we hope to help clarify their business practices and what we would consider pros and cons.
There are so many business brokers in the market that it can be overwhelming. When trying to decide if you need a broker to sell your business there are many things to consider.
However, if you want to have a pretty easy process we do recommend using a business broker. But how do you know which one is reputable and trustworthy?
Reading reviews like this one as well as doing your own research on the company will help clarify the situation.
Whether you are selling a brick and mortar business or website business, you will want to keep reading. This review applies to both.
Overview of Link Business Brokers
Link Business Brokers is a business for sale company that has a truly global presence. While they do operate in the United States, it is not their home base of operations.
Link Business Brokers was founded and is still based in New Zealand. They started in New Zealand in 1996 and were a very small company.
However, they continued to grow. Link Business Brokers started to become a global presence slowly, not establishing their US head office until 2017 in Los Angeles.
They now have many offices in the United States, New Zealand, Australia, and the Philippines. This keeps them present in most of the markets around the world.
People Behind the Business
While the website does talk a little bit about the founding and the history it doesn’t say much about the founder.
Other than the country of founding we didn’t see who started Link Business Brokers. When writing a review we do like to see that the founder is listed.
It is not unusual for a company to not talk about the founder, though. Sometimes they would rather focus on who is running the company now.
However, the website did say who started the US office. Ron Hottes, who had already been a business broker in Los Angeles converted his office to a Link office in 2017.
Then in 2019, the United States home office was established in a partnership with the US director, Richard Hershey.
With the longevity of the business, it is safe to assume that they also have an experienced team of managers and brokers behind them.
Years in Business
As stated in the overview of the business, Link Business Brokers has been in business since 1996.
This is a long time for the brokerage business. Often with the way things change, companies come and go.
With 24 years in business and no signs of slowing down, there is confidence in the business that doesn’t come with new companies.
In those years, the business has grown and spread through the United States, Australia, and the Philippines.
It is likely that you can find a firm near you to help with your sale.
Types of Businesses Link Business Brokers Sell
Upon looking at the website and scrolling through the businesses for sale page we have a good idea of the businesses that they sell.
Link Business Brokers is one of those firms that doesn’t limit what they sell. While they started selling strictly brick and mortar businesses, they changed with the market.
They list and sell website businesses of all kinds as well as main street and mid-market brick and mortar businesses.
It also seems like they don’t limit how much the business is worth. For example, there are brokers and websites for sale companies that only deal with businesses that are valued at over one million dollars.
That is not how Link Business Brokers operates. This is good news for smaller businesses. It also means they have a larger pool of businesses for sale.
That gives a pretty good chance for buyers to find what they are looking for.
Link Business Brokers Valuation Process
Link Business Brokers does offer a valuation process. It only takes about two minutes for this process.
However, it is a very basic valuation. If you choose to sell your business with them then you will need a larger and more in-depth valuation.
The way they handle valuations is called a Link Business Broker opinion of value. They do look at different aspects of the business to develop this valuation.
It can also be added to other valuations as a second opinion or supporting documents.
A Link Business Broker uses what they call the four key elements of a valuation.
The economic situation of the nation, region, or local area is evaluated in order to give an accurate valuation.
A full financial assessment of the business that is to be sold. What is the debt to income ratio? What is discretionary income? The broker needs to look at all of the documents and financial records to make an accurate valuation. This also means looking at the industry and market.
Account normalization has to do with cash flow. Buyers will want to know about this so it is included as part of the valuation.
Business Market Value
Link Business Brokers does have a unique tool that they use to help with appraisals. This tool is called VALU.LINK and uses advanced algorithms to provide an accurate appraisal.
You will have to provide some information and numbers about your business if you want the appraisal to be as good as it can be.
Using this tool will only take a few minutes and is something that is specific to Link Business Brokers.
When we were looking for the sales process of Link Business Brokers on the website, we didn’t find it.
At least we didn’t find a detailed and clear description of what the process will look like.
From the information, we found we can put some of the pieces together. However, it is not complete.
You will need to ask them directly if you are interested in using them to sell a business.
It looks like the sales process, similar to other brokers, starts with a valuation of the business. Link Business Brokers offers a free no-obligation valuation.
However, we are not clear what will happen after the valuation if you decide to use their brokerage services.
We assume you will sign a sales agreement, but it is not clearly stated.
We do know that they work on a comprehensive marketing plan and will keep the sale of your business as confidential as possible.
They will also prepare an Information Memorandum after the marketing plan is created. Link Business Brokers has a few tools that can help with the marketing process.
They have a global database that has over 250,000 buyers that want to invest in a business. Link Business Brokers also has a direct marketing tool that they developed.
This tool is called Ad.Link. There is also a tool that they use to analyze the market and the motivations of the buyers called ONE.LINK.
The information memorandum is everything that has been prepared for your business. This is what will be presented to potential buyers to help them make a decision.
It is pretty safe to say that a buyer will be identified and then the negotiations will begin. They don’t say much about the negotiation process.
But like most negotiations, this is probably when all of the terms of the sale and transfer will be decided.
They do talk a little bit about performing due diligence before the closing of the sale. This is a standard procedure for most of the brokers that sell businesses.
They need to know that everything is what the owner said it was.
There is always a closing but how each broker handles it could be different. Make sure you get all of the details beforehand.
This is when the money and the business are transferred from the seller to the buyer. Things you will want to ask is about escrow and how they handle that.
Link Business Brokers Success Rate
With a global presence and longevity in this business, it is safe to say that the success rate of Link Business Brokers is probably pretty high.
But that is all assumption. The website does not say anything about its success rate. It doesn’t even allude to it.
While Link Business Brokers don’t give us a percentage for a success rate, they do tell us how many businesses they have sold. At least they give us a general idea.
The website says that since their founding they have “helped over 7000 owners sell their businesses.”
This is a large number of businesses that have been sold. They also disclose that they have over 3000 businesses currently for sale all over the globe.
Fees Charged By Link Business Brokers to Sell a Business
We did find a detailed guide to selling your business with Link Business Brokers. However, you have to download it.
The information is not in one convenient place on the website to find. You have to know what you are looking for and click the download link.
We were hoping by downloading this guide we would find out about the fees associated with selling a business with Link Business Brokers.
We didn’t. There was nothing about listing fees, commissions, or anything else related to paying the broker.
If you decide that you want to work with Link Business Brokers we suggest that you ask about the fees before you sign an agreement to list with them.
The fees could be very high. It is also possible that there could be a sliding scale commission.
Pros and Cons of Using Link Business Brokers to Sell a Business
We have put the pros and cons of working with Link Business Brokers into a clear and concise list.
- Global Presence
- Unique Tools to Help Market, Value, and Track Trends
- More Than Two Decades of Experience
- Sells All Types of Businesses
- No Fees Listed
- Website Could Be More User Friendly
- Bad response times