One of the first things you may notice when conducting a business search on Firm Exchange is that we sort business listings a little differently than other sites. As part of our commitment to helping more small business deals get done, we provide tools and resources to close small business deals more confidently and efficiently. One important feature to help achieve this is using our proprietary LC Rating as the default sort mechanism for business search results.
The LC Rating is a numerical score calculated for each listing based on the amount of information the seller provides. This is shown to users on a 5-star scale, with more stars meaning more information.
Some other sites instead rely on upselling to drive placement—the more the seller pays, the higher the listing. Letting people buy their way to the top of search results doesn’t get deals done more quickly. By respecting your time and money, the LC Rating is just another way we’re bringing a more modern approach to the small business marketplace.
Rewarding transparency creates more complete listings. The LC Rating system provides a strong incentive to the people listing businesses for sale. By rewarding information transparency, we encourage sellers to fill in as much of the listing as possible to push his or her listing higher in the search results. The result for buyers is more complete listings—after all, there is now a genuine cost for sellers in holding back information.
More information helps you save time. When listing placement is sold to the highest bidder, buyers are the ones who ultimately pay the price. With our LC Rating as the default sorting method, you can quickly identify which listings are most worthy of your time and attention.
Find the right business for you. These two benefits combine to result in a more efficient use of your time. Buyers can pair more complete listings with our advanced search to find exactly the business they are looking for. Save searches as a Watch List and be notified when your perfect business is listed on Firm Exchange.
Prioritizes your commitment to the sale process. We reject the “pay to win” philosophy of allowing people to buy their way to the top of search results. It creates the wrong set of incentives for both sellers and the marketplaces they rely on. We believe commitment to the sale process should be prioritized—not the size of someone’s marketing budget.
Signal seriousness while maintaining confidentiality. As a seller, your data is extremely important. That’s why the LC Rating gives you the opportunity to demonstrate your seriousness while preserving your privacy. Nearly half of a listing’s rating is based on whether historical financial information has been uploaded—information that’s kept private until the seller decides to share it. Being able to hide the business’ name, its address, and who is selling it are just a few more of the ways we value and respect your privacy.
Rewards preparation. An additional benefit to the LC Rating system is it better prepares sellers for what buyers will ultimately need. Every piece of information asked for in a listing is based on a deep understanding of what kind of data is needed to complete a sale. Tooltips along the way help point you in the right direction, explaining any terms that aren’t immediately familiar. Our technology helps sellers confidently move through the process.
Transparent pricing with no up-sells or add-ons. A major benefit for brokers that choose to use Firm Exchange is our transparent pricing model without any up-sells. We choose not to encourage the arms race of spending. It’s time to let the listings speak for themselves, not whomever decided to spend more for bigger pictures or colorful borders.
Helps motivate and prepare business owners. The LC Rating also gives you another tool to help get information from your clients. Every broker knows the struggle of onboarding a first-time client and explaining why certain data is important. By being able to show your clients the tangible benefits of being more upfront, Firm Exchange helps you focus on getting deals done and spend less time on the tedium.
Leveling the playing field. Gone are the days of choosing which of your listings is more deserving of your limited marketing spend to ensure better visibility. Put your clients on equal footing and let them see the benefits of providing more information. This extra preparation can also lead to more efficient transactions and more informed conversations with potential buyers. A win-win.
Our proprietary LC Rating algorithm assigns different weights to the information provided in a listing. Fields that are particularly important to the buyer or difficult for the seller are worth more. Conversely, straight-forward, less valuable, or required fields are worth less. A listing that has only the required fields completed, for example, will receive a half-star rating.
Sellers have a couple of tools at their fingertips when editing a listing to track the progress of that listing’s LC Rating while also identifying opportunities for improvement.
It’s important to note that the algorithm does not consider the quality or accuracy of any information in a listing. It is the responsibility of the buyer to verify all information provided by the seller. Sellers who abuse the system may have their listings removed or their accounts suspended. In the event a buyer notices abuse, we encourage buyers to report the listing and decide for themselves how, if at all, any abuse impacts their assessment of the seller.