Who’s the best US business broker? A review of Sunbelt vs. Transworld vs. Murphy
FitSmallBusiness have published a review comparing three of the largest brokers in the US. They do disclose this: “When readers buy products and services discussed on our site, we often earn affiliate commissions that support our work.”
That said, the review goes on to declare Sunbelt as the best of the three on the grounds that, “They have the highest volume of businesses for sale, highest closing ratio, and highest average sale price. ”
We are not sure whether any of those three claims has any merit.
First, volume of businesses for sale – this is hardly a good indicator of a broker’s effectiveness at selling businesses. A broker can acquire a large number of listings by charging a low advance fee and/or taking on businesses that have very slim chance of sale. This does not necessarily imply they are better at closing deals. In fact, volume operators in this market often rely on the large number of listings on their site as a PR / marketing exercise – “so many people sign up with us that we must be good”.
With respect highest closing ratio – closing ratios are not public; we are unsure where the researchers sourced the data needed to make this claim. I have requested this of them in the comments section of their blog post.
Similarly, selling prices are not public. Most deals involving small businesses are privately done with the closing figure held confidentially. FitSmallBusiness do not explain how they arrived at these averages.
The full article is here: Best Business Broker: Sunbelt vs. Transworld vs. Murphy
Related: Finding the best UK broker.