I recently went out on a listing call and during the course of a presentation I mentioned to the seller that I co broker with other business brokers. She told me that she had the business listed with another broker some months prior, and he also said that he co brokered with other business brokers. However, when she went to look at her ad on line it said, “no” under co brokering. I was shocked that a person in a trusted position, such as my own, would do that. Obviously, her business didn’t sell or she wouldn’t have been talking to me. I told her that I am very professional in the way that I handle all my listings and I suggested that she take a look at all my other listing to see how they were handled.
I share her frustration. As a member of CABB (California Association of Business Brokers), part of our pledge is to foster a spirit of co operation in working with each other. Also by eliminating co brokering, non co operating brokers are eliminating 70% of the opportunity to find a viable buyer for that business. WE, as business brokers are doing a disservice to our sellers and to ourselves buy not co brokering with other business brokers. What’s worse, many sellers are unaware that’s even an option. They often just assume that a broker will co broker but all too often I see business brokers that feel that they have good shot of getting the commission on both sides so they close that door. Don’t get me wrong, I also love to get the commission on both sides, and I do a fine job of being a dual agent, but I won’t hinder my clients chance to sell just to line my pocket.
In regards to real estate agents, I personally don’t co broker with people who primarily sell houses for a living. I believe that selling businesses is much more litigious and complicated than selling houses and unless the other agent knows how to handle the sale of businesses, I don’t want to put myself or my client in jeopardy. On the other hand there are many fine business brokers that are working out of real estate offices and they are more than capable of holding up their end of the deal.
If you are selling your business and you’re in the process of choosing a broker, take the time to really look at other listings this person has. Does it say, “yes” to co brokering? Are the ads well written? I’ve seen some ads that are poorly written and sparse. They give the impression that not much attention or effort was put into the listing.
Like every industry, we have excellent professionals who take what they do very seriously and then we have people who are not working with their heart in what they do. It’s your responsibility to try and find a broker that you can connect with, that shares your work ethic and standards. We are out there you just have to look.
Written by;
Christina Lazuric
Broker/Owner
California Business Brokers
