What a broker does, what it costs, and how BizUtah is different.
If you're searching for a Utah business broker, you probably want three things: to sell without your employees and competitors finding out, to deal only with real buyers, and to not get taken advantage of on price or paperwork. Here's how a traditional brokerage handles that, and how BizUtah does.
Most Utah business brokers charge a success fee of 10% to 12% of the sale price, often with a minimum of $10,000 to $15,000, and many require an exclusive listing agreement of 6 to 12 months. Some also charge an upfront retainer or "marketing fee" of $1,000 to $5,000 whether or not the business sells. For a $300,000 business, that's $30,000 to $36,000 at closing plus whatever was paid up front.
A good broker prices the business, prepares a confidential information memorandum, advertises it anonymously, screens buyers, gets NDAs signed, manages the offer and due diligence, and coordinates closing. The best ones earn their fee. The problem is that most small Utah businesses, under $500,000, don't get that level of attention. They get listed on a national board next to 60,000 other listings and wait.
If your business is worth more than about $2 million, has complex real estate, multiple locations, or you want someone to run the entire process for you including negotiating with buyers' attorneys, a full-service brokerage or M&A advisor is worth the fee. BizUtah is built for the owner of a $50,000 to $2 million Utah business who wants a confidential listing, screened buyers, and a fair fee.
Note: under Utah law a business sold with a lease or building is a real-estate transaction. BizUtah lists those businesses with no fee and does not act as a broker on them; the seller and buyer contract directly.
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