Q: What is a business broker, and how can they help me?

A: A business broker connects a buyer and seller where they otherwise would not have found eachother. A broker acts as your guide and advocate during the buying or selling process. We help with business valuations, marketing your business confidentially, finding qualified buyers, negotiating deals, and navigating. the legal and financial complexities of the transaction. Our goal is to ensure a smooth process and maximize your outcome. 

Q: What is your commission on the sale of a business at Elite Collaborative?

A: Our commission is 10% of the selling price or $3,500 minimum for the first million. Our commission is not negotiable unlike real estate agents. For reference, the industry average is 12%-15% of the selling price. Here are our tiered commission rates for sales over $1M.

8% on the portion from $1,000,001 to $2,000,000
6% on the portion from $2,000,001 to $3,000,000
4% on the portion from $3,000,001 to $4,000,000
3% on the portion from $4,000,001 to $5,000,000
2% on any portion exceeding $5,000,000

Q: What are the fees to list a business at Elite Collaborative?

A: There are no listing fees here at Elite Collaborative. We pay all of the upfront costs for listing your business. We only get paid when we sell your business.

Q: How do you determine the value of my business?

A: We use a combination of financial analysis from your last 3 years taxes, your year-to-date revenue, industry trends, market comparables, lender recommended multiples, and our extensive experience to assess your business's value. This ensures an accurate valuation that reflects what your business is worth while being attractive to potential buyers. 

Q: How long does it take for a business to sell?

A: The timeline varies depending on the type of business, market conditions, and buyer interest. On average it can take 6 to 12 months. Our brokers average is 90 days and some that have sold in less than 14 days; However, of course we cannot gaurantee any amount of time. We focus on finding the right buyer at the right prices, rather than rushing the process. 

Q: Do I need to disclose my business is for sale?

A: It Depends. Buyers tend to want sellers to keep the sale confidential until terms of disclosure are set; however, brick & mortar businesses often find their buyer within their current customers. Talk to your broker about the best path for you. As a brokerage, we maintain strict confidentiality throughout the process, only sharing information with qualified and vetted buyers who have signed non-disclosure agreements with our brokerage. 

Q: How do you find buyers for my business?

A: We leverage a combination of our extensive network, targeted advertising on multiple platforms, and confidential marketing strategies to connect with qualified buyers who are actively searching for businesses like yours. 

Q: Can I sell my business if it's not profitable?

A: Absolutely. Even businesses that aren't profitable can have value, whether it's in the assets, customer base, or growth potential. We'll help identify what makes your business appealing to buyers. Over 30% of our businesses sold in 2024 were not profitable. 

Q: Can I stop working the business once it's listed for sale?

A: No — buyers expect to see an active and engaged business. In fact, we strongly encourage sellers to maintain — and ideally increase — their efforts after listing, as this builds buyer confidence and helps maximize value.

To keep the process transparent, we request updated financials every 30–60 days while the business is on the market. Please note, Elite Collaborative reserves the right to remove listings if it becomes clear the seller is no longer actively operating the business.

Q: What financing options are available for buyers?

A: Buyers often use a mix of personal funds, bank loans, SBA loans, HELOC, Conventional, or seller financiang. 

Q: What is seller financing, and how does it work?

A: Seller financing is when the seller agrees to let you pay part of the purchase price over time, typically with interest. It is a great option for buyers who may not have access to full financing upfront and demonstrates the seller's confidence in the business's future. 

Q: How long does it take to buy a business?

A: The process can take anywhere from 7 days to 6 months, depending on the type of business, negotiations, financing, and due diligence. We'll help you stay on track and navigate every step efficiently.

Q: What is included in the sale of a business?

A: This varies, but typically it includes assets like inventoy, equipment, customer list, social media accounts, and intellectual property. We provide a detailed asset list so we are able to ensure you understand exactly what you're getting before the deal closes. 

Q: What types of businesses are the easiest for first-time buyers?

A: Small businesses with a loyal customer base and straightforward operations are ideal for first-time buyers. Don't be afraid of businesses that are in the red. There is an opportunity to get a great deal and turn the business around with your skill set. We'll work with you to identify opportunities that match your skills and comfort level.  

Q: Will I get help from the seller after I buy the business?

A: In most cases, yes. Sellers often agree to a transition period to provide training and support, which helps you get up to speed and ensures a smooth handover.

Q: What happens during due diligence?

A: During due diligence, you'll review the business's financials, operations, legal documents, and other details to ensure there are no surprises. We'll guide you through this process to help you ask the right questions and uncover any potential issues. 

Q: Does a business broker represent both sides of a deal?

A: It depends. In most cases, a business broker represents both the buyer and the seller as a neutral intermediary, facilitating communication and ensuring the transaction moves smoothly. We do have a lot of primary duties to the seller, as we market the business, find qualified buyers, and negotiate terms. We always encourage both buyer and seller to attain additional representation, such as an attorney, to review Purchase Agreements. We strive to maintain fairness and transparency throughout the process and take our role as neutral intermediary very seriously.