There is no single best way to sell a business, but there is a best way for a given business, and it is decided by who your likely buyer is. Ranked below by reach rather than by price, with the cost of each stated, because the cheapest route that reaches nobody is not cheap.
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Best way to sell a business: the ranking, and the criterion
- A run process with an M&A adviser: Reaches funds and strategic acquirers who never see listings, and creates the competition that moves price. Costs a retainer plus a declining success fee, so it only repays itself where several credible buyers exist.
- A main street business broker: Reaches individual buyers locally and handles screening, lease consent and license transfers. Costs a commission with a minimum fee, and is the standard route for restaurants, shops, clinics and contractors.
- An online marketplace listing: Reaches the widest pool of individual and online buyers for a listing fee measured in tens of dollars, with all of the screening and negotiating left to the seller.
- A direct sale to someone you know: No marketing cost and the fastest close, at the price of no competition. Best where a manager, an employee group or a trading partner is the natural owner.
The test that decides
Name the five people or firms most likely to buy your business. If they are funds or national acquirers, you need a process. If they are individuals within driving distance, you need a broker or a listing. If one of them is a manager or a competitor you already deal with, a direct negotiation may beat both, provided you get independent advice on value first.
Where sellers get it wrong
Choosing on fee rather than reach. A marketplace listing is cheap and useless for a manufacturer a fund would buy; a full process is expensive and pointless for a business with one plausible purchaser. The fee difference between routes is smaller than the price difference between reaching your buyers and not reaching them.
What is the same either way
You still need clean financials, a documented add back schedule, a lawyer for the purchase agreement and an accountant for the structure. None of the four routes removes those, and skipping them is where the real money is lost.
Questions people ask about best way to sell a business
Which route is fastest?
A direct sale to a known, funded buyer. Every other route adds marketing time, and any buyer needing a loan adds their lender's timetable.
Which gets the highest price?
The one that produces the most credible competing buyers for your particular business, which is usually a run process where institutional buyers exist and a broker where they do not.
Can I combine routes?
Yes. Listing publicly while an adviser approaches named buyers is common, subject to what your agreement allows.