The Tribune

By NATARIO McKENZIE

Tribune Business Reporter

nmckenzie@tribunemedia.net

A BAHAMAS-based business broker said yesterday he had turned down more business than he was prepared to take on, telling Tribune Business his firm would provide a free listing service to small businesses seeking buyers for less than $50,000.

Simon Cooper, a founding partner of the business brokerage firm, Res Socius, said the launch of the 'freemium' service would allow those businesses to take advantage of the company's sales directory.

He told Tribune Business: "I turn down more business than I am prepared to take on as a broker. I often, for whatever reason, don't feel that I am able to add value to what they are doing, either because their price is too high or their business might be in distress. In either situation, I can't help. I can't make the business more valuable and I can't make it more attractive if it's distressed."

Mr Cooper added: "We take a narrow slice of those businesses in the middle, where the valuation does make sense and it's not a distressed sale. Another motivation to offer this is for those businesses that we do turn down to be able to make the sale themselves.

"If we are turning down more business than we are prepared to list, then clearly they have a problem they have not solved. Our expectation is that those people can take advantage of the sales directory and the other activities that drive people to our site."

Mr Cooper said the model is similar to the 'freemium' model; providing free listings for small business, and $1 a day for larger businesses that don't want a broker service or full broker service that is based on success only.

He explained: "What this service enables them to do is to list their business, and people will then contact them directly through the website, meaning that the seller has the opportunity to screen the potential buyer before they reveal the identity of the business, keeping them anonymous until they are comfortable.

"They don't get the full range of service a broker would offer. Then again, they don't necessarily need it. Part of it is to assist that end of the market. It increases inventory and attracts for us more potential buyers. We are OK to make our fee off our broker service. By having a wide array of businesses for sale it attracts more buyers."

Mr Cooper added: "What we also did is offer for businesses above the threshold that don't want broker services to just pay a nominal fee to list on the site. The model essentially follows the model of the free service, the only difference being they pay $99 dollars for 99 days."

Mr Cooper said the market was still very tough. "The finance isn't as ready available as it used to be, which means that the price people can pay for businesses is less because there is less credit around," he added.

"We are starting to see a shift of sellers starting to realise that the valuation of their business may have been a little on the high side, so they are starting to come dtown to reality. Deals are getting done, although the deals that are getting done tend to be the ones where the seller is willing to be flexible on the payment terms."