The first broker asked a few questions, told us the business was worth around 2.5 times profit and listed it online.
No request for financial reports. No deep dive into the numbers. No questions about the lease.
Just a number pulled from a general rule of thumb, a contract we had to sign for six months, a listing fee we had to pay upfront and a commission they'd collect on top of that if it sold.
One person came to look at it. One.
Six months later we were no closer to selling and still legally obligated to pay commission if we found a buyer ourselves.
The second broker was different.
More honest about what the business was actually worth. Asked harder questions. And, crucially, told us to check our lease before we went any further.
That conversation led to finding the clause that made the business effectively impossible to transfer. The thing that ended everything.
The first broker either didn't know to look for it or didn't bother. The second one did.
Same industry. Same job title. Completely different outcomes.
Most operators don't think about brokers until they're exhausted enough to want out.
That was me. I didn't call a broker because I had a plan. I called one because I was done. Because I needed someone to tell me there was a way off the wheel.
The first broker asked a few questions, told us the business was worth around 2.5 times profit, and listed it online.
No request for financial reports. No deep dive into the numbers. No questions about the lease.
Just a number pulled from a general rule of thumb, a contract we had to sign for six months, a listing fee we had to pay upfront, and a commission they'd collect on top of that if it sold.
One person came to look at it. One.
Six months later we were no closer to selling and still legally obligated to pay commission if we found a buyer ourselves.
This isn't a hit piece on brokers. There are good ones; I know because I found one eventually.
But here's what I wish someone had told me before I signed that first contract:
A broker is not a substitute for knowing whether your business is actually sellable before you list it.
Most operators do it in the wrong order. They get exhausted, they call a broker, they list, and then they find out the hard way what's blocking the sale. After they've paid the listing fee. After they've signed the six-month contract. After the clock is already running.
The right order is the opposite. Understand what you have before you list it. Know your numbers cold. Know what your lease allows. Know whether a buyer could actually step in and run it without you.
Then, if everything checks out, find a good broker and use them properly.
How do you know if a broker is worth working with?
A few things I look for now:
They ask to see your financials before they give you a number. Any valuation that doesn't start with your actual books is guesswork dressed up as expertise.
They ask about your lease early. The lease is often the most important document in a hospitality sale. A broker who doesn't ask about it in the first conversation hasn't done enough of these.
They tell you things you don't want to hear. The broker who told us the truth about our lease saved us from months of false hope. The one who just listed it and hoped for the best cost us money and time.
They explain how they get paid before you ask. Commission structures, listing fees, contract terms. You should know all of this upfront, not when you're already locked in.
Whether you're thinking about selling or not, these four questions tell you something important about the health of what you've built:
Are my books clean and can I explain every number in them?
Can this business run without me for thirty days?
Have I actually read my lease, specifically the assignment and transfer clauses?
Do I know what this business is actually worth based on real profit, not gut feel?
If any of those made you uncomfortable, that's useful information. Not because you need to list tomorrow. Because a business that can't answer yes to those questions is working harder than it needs to. And so are you.
Next edition I'll walk through exactly how to assess each one of these yourself.
If you've had your own broker story - good or bad - hit reply. I'd genuinely like to hear it.