Thinking of selling your California business?

How to choose a business broker in California

Also in Resources: this guide as a standalone page, how to check a DRE license, how broker directories compare, what a business is worth, and keeping a sale confidential.

Selling a company is a legal and financial project, not only a marketing one. In California, a person who is paid to negotiate the sale or lease of a business opportunity generally must hold a real estate broker license, or a salesperson license and work under a licensed broker. The Real Estate Law defines a business opportunity as the sale or lease of the business and goodwill of an existing enterprise. Confirm any license on the Department of Real Estate public lookup before you hire anyone. This directory does not verify licenses, insurance, or the quality of anyone's work.

Start with the city page closest to the business you want to sell or buy. Read the profile, not only the name. The attribute grid shows what a firm's own materials support: valuation work, exit planning, SBA buyer experience, a confidential process, languages besides English, or work across the state. True means we found that claim in the public record or on the firm's site. Not enough info means we did not. It is not a failing grade, and it is not a reason to skip a phone call. False would mean the materials say the firm does not do that work; many profiles simply do not say.

If a sale might transfer corporate stock rather than business assets, securities rules can also apply. The Department of Real Estate notes that a stock sale may require a broker-dealer license. Ask how the deal is being structured and who will handle that part. This directory does not decide when that line is crossed.

On the first call, ask who would hold the listing, whether that person is a broker or a salesperson and which broker they work under, what kinds of companies they have sold recently, how they keep a sale confidential, and how they work with your attorney and accountant. Ask what you will need to prepare: financials, a lease assignment, and a realistic picture of owner dependence. If the firm offers a valuation or an exit plan, ask what the work includes and what it does not. Do not treat a high rating from a handful of reviews as the same as a high rating from a long review history. The numbers are Google's, and they sit next to the count for a reason.

A basic listing is free. If a broker pays to be shown higher on a page, we label it, so you always know what's paid. Association membership is a badge taken from a public membership record, not a government license. Call the firm, check the license, and get a written engagement. You can ask a confidential question, or start with the guides on Resources and the seller FAQ.