Kay here. This week I'm covering:

1. Why broker commissions often cost $200K+ on a typical $5M sale

2. The exact process to find and approach potential buyers yourself

3. Three critical documents that prevent deals from falling apart

4. And more...

Best Links

Top revenue resource:

• Trusted partners and untapped markets create lasting profits

• PrivateEquityGuy on CEOs being a business’ moat

Cost optimization insight:

• Sam Parr on best ChatGPT prompts

• StripMallGuy on your weaknesses, hint: they’re costing you

Industry trend spotlight:

• Dealmakers anticipate M&A uptick in second half of 2025 despite current uncertainty

Value Vault

DIY Business Sale Playbook

Business brokers typically charge 8-10% on smaller sales and 3-6% on businesses above $1M. On a $5M sale, that's $150K-300K in commissions. This cost comes directly from your proceeds, potentially reducing your retirement fund or next venture capital.

While selling without a broker saves substantial money, success requires careful preparation. Here's my proven 5-step process for handling it yourself:

Step 1: Know Your Value

Many DIY sellers either overprice their business and get no interest or underprice and leave money on the table.

Fix: Invest in a professional valuation ($3K-8K) and research comparable sales in your industry through databases like BizBuySell or DealStats.

Step 2: Create a Strategic Buyer Plan

Without a broker's network, finding legitimate, qualified buyers becomes your responsibility.

Fix: Start with competitors, suppliers, and customers who already understand your business value. Then research private equity firms and strategic buyers in your space. Develop a tiered outreach list with at least 50-100 potential buyers.

Step 3: Implement Confidentiality

When word gets out that your business is for sale, employees get nervous, customers may look elsewhere, and competitors can use this information against you.

Fix: Create blind teasers that describe your business without identifying details. Use generic email accounts for communications. Require signed NDAs before revealing your company name.

Step 4: Prepare for Due Diligence Before Finding Buyers

Up to 70% of business sales fall apart during due diligence when buyers discover issues the seller didn't disclose.

Fix: Hire an accountant to review three years of financials. Create a virtual data room with organized documentation for contracts, leases, employee agreements, customer records, and inventory lists.

Step 5: Engage Key Professionals

Transaction structure affects taxes, liability, and transition logistics. Without proper expertise, sellers may face unexpected tax bills or post-sale liabilities.

Fix: Find attorneys with specific business sale experience in your industry. Discuss asset vs. stock sale implications, representations and warranties, earn-outs, and transition agreements before engaging with buyers. Remember that selling without a broker isn't about doing everything yourself. It's about maintaining control, saving on commissions, and strategically investing in expertise where it matters most. The best time to start preparing is 12-18 months before you hope to close.

How I Can Help

1. Chief Rebel Peer Groups - Join a carefully curated group of non-competing business owners building together. Join the waitlist

2. Exit Advisory - One-on-one guidance to maximize your business value, whether you plan to sell in 1 year or 10. Schedule a consultation

Until next week,

kay

Chief Rebel

P.S. Would you sell a business without a broker?

P.P.S I read every reply and poll , is content helpful?