Buying and selling websites is a relatively young industry. So it may be hard to discover which brokerage firms are reputable and safe to work with.
You also want to work with a company that has your best interests in mind. While all companies are in business to make a profit, it is important that your broker is more interested in your profit than theirs.
With so many firms that specialize in business website sales, it is better to narrow down the best options.
That is why we have written this BizBroker24 review to help with your search. By the end of the review, you will have a clear view of the business.
That includes the way they sell the sites, their valuation process, fees associated, and who is behind the business.
Overview of BizBroker24
BizBroker24 is one of the older brokerage firms in the business. They were founded in 2009 to meet the demand of the new website sales industry.
BizBroker24 is what we would consider a global business. They have brokers that work remotely all over the world.
Countries of Business
BizBroker24 is heavily stationed in the United States but they do have offices and brokers all over the world.
The countries that they have a presence in are the following.
- United States
- United Kingdom
- South Korea
They are far-reaching and have their finger on the pulse directly on the website sales industry. Because they are globally minded they notice the trends in the website business.
People Behind the Business
The founder and CEO of BizBroker24 is a man named Steven Endrizzi. He has an MBA and handles business that is conducted in Europe and the United States. There is a large staff all over the world but there are three senior business brokers that help manage the team.
There are also eight other business brokers that work with different world markets. As well as a full marketing staff and administration department.
Brand acquisition managers and external introducers are also on the BizBroker24 team.
The website does not give a description or background of anyone on the team including the founder and CEO. It simply gives their name, their title, and the country where they work.
Types of Businesses BizBroker24 Sells
Knowing what types of businesses a website broker sells will be a good way to decide if that company is for you. If they don’t deal in your type of business then you would want to look elsewhere.
The types of businesses that BizBroker24 sells are most of the typical sites.
They do have a range of values that they operate in as well. If your business is valued between $125,000 and five million there is a good chance they will list your business.
As long as it is all true and the business is solid.
BizBroker24 Valuation Process
An important aspect of any brokerage firm is their valuation process. It is common practice for companies to offer a free basic valuation of your business.
BizBroker24 is no different. They do offer a free valuation. What can vary is how detailed the valuation process is or what information they require.
As far as BizBroker24 goes, they ask for very basic information. This is information that would be easy to not be honest about.
We caution you against that. Because they do have a deeper look after the basic valuation they will find out if you haven’t been truthful.
What they ask for in the beginning is basic but needed.
- Your Website
- If someone referred you
- The country you are in
- Phone number
- Annual Earnings
- Annual Revenue
You can also make additional comments to leave more details about your business and why you are looking to sell. This part is optional.
Once you have done this and they have decided to pursue things further, it will be time to move onto their sales process.
With BizBroker24 there are actually two different processes that you can go through. The one that you end up using will depend on the value of your business.
BizBroker24 separates how business is done for websites that are worth under five million dollars and websites that are worth over five million.
Since having a website with a valuation of under five million is more common we are going to talk about that process.
At the end of this section, we will tell you what is different about higher-valued businesses.
Even if you have done the free valuation there is another level that you can go to before making any commitments.
One thing we really like about BizBroker24 is that they offer a consultation. Not just a valuation.
You can schedule a phone, email, or Skype consultation to talk about your options. We like the idea of being about to talk directly to a person even before you have decided to use their services.
If you decided to proceed after the valuation and consultation then you will then move into the review process.
This is the part where the broker will start to look over all of the business’s financial information. They will also look over your business plan.
BizBroker24 is dedicated to making sure the websites they sell on their site have longevity and a long term plan. Even if the new owners change the plan it shows that the business was planning to continue thriving.
Your BizBroker24 broker will also look into your discretionary income.
After the initial valuation, the consultation, and the review then will be a detailed valuation of your website.
This will be the value that they use to determine the listing price. The initial valuation is not a guaranteed amount.
They will use a lot of information to come up with this number. Including comparable sites and their values.
Marketing and Packaging
After the final valuation, you will decide if you want to use BizBroker24 to list your business. If you are ready to move forward the business will be packaged for marketing.
This means that they will come up with a listing and a plan to market the website to potential buyers. As well and list it on the website.
This is a crucial part of their success.
Because BizBroker24 values the privacy and confidentiality of the seller all buyers are required to sign confidentiality agreements.
Plus BizBroker24 only lets those that are truly qualified to purchase your business know that it is for sale. This is a guarantee that they have.
They are so serious about privacy and discretion that they pre-screen all of their buyers.
Every buyer on their list or that has access to their site is financially able to purchase the sites.
This also contributes to their overall success rate.
Letter of Intent
Once a buyer has decided that your business is the website they want to buy they have some paperwork to do.
BizBroker24 has a policy that every buyer that would like to purchase a particular site submits a Letter of Intent. Sometimes this is called an Acquisition Proposal.
This letter will outline, in very basic terms, what will happen with the sale. It will include the sale price, the way payment will happen, training, post-sale support, and a few other things.
All of this will be negotiable later in the process.
At this point, the terms of the sale will be negotiated down until everyone is happy. Once the buyer, seller, and legal counsel are happy the next step will happen.
But this is the time to get what you want. Or at least ask. Once negotiations are done there is no going back.
This is when the contract is signed and the payment is transferred to the seller. The business is also handed over at this time.
Unless of course there were specific terms in the contract that were worked out.
Businesses over a $5 million Valuation
There are some differences in the process when selling such high-value websites. The main difference is the due diligence process and strategy. But the steps are as follows.
- Adjust financials
- Business valuation
- Business memorandum
- Marketing strategy
- Pre-screening buyers
- Due diligence
BizBroker24 Success Rates
BizBroker24 is right up there with the main competition when it comes to the success rate.
They do have a success rate of 95%. That is a great rate of sales and closings. But they are highly selective.
The selection process is one of the things that contribute to that success rate. Another thing that contributes to the rate is their pre-screening process.
They pre-screen buyers so only people that are not only qualified but interested in the site can see it. This limits the number of sales that fall through.
When talking about a success rate you really do need to look at all of the variables that make that happen. It is a wise business practice to set the buyer and seller up for success.
Fees Charged By BizBroker24 to Sell a Business
BizBroker24 is another one of those companies that don’t list what they charge on the website. We really don’t like this but they do address the topic on their FAQ page for sellers.
They do not charge any upfront fees such as listing fees or consultation fees. They also don’t charge fees along the way.
The way they get paid is by a success pay rate. Or more commonly known as a commission.
Typically a commission is a percentage of the total sale. But the BizBroker24 website does not specify what the percentage is.
Pros and Cons of Using BizBroker24
Working with any business will have good and bad aspects. There might be a lot of things that you just rave about while there are a few things that you could do without.
BizBroker24 is not any different than any other business. There are things that we really like about this business.
There are also things that we wish were different.
The pros typically outweigh the cons. At least that is how it is with BizBroker24. We found more that was positive about this business.
More reasons we would use them ourselves or recommend them to others.
- Global market
- Brokers all over the world
- No listing fees
- Free valuation
- Free consultation
- Buyer pre-screening
There were also some things about BizBroker24 that we did not like very much. However, you have to decide if any of these are personal deal-breakers.
While we would personally still use them that might be different for you.
- No fees or commission prices on the website
- No information about the founder or CEO
- They only deal in the high-value market
- Horrible response times
These are just what we found to be off-putting with BizBroker24.