A business
broker earns their fee through expertise, hard work, networking and sales and
ultimately are experts at getting you and your business to close.
There
are terms and stipulations in an agreement that you should understand before engaging
with a Business Broker.
A.
The agreement normal length of listing agreements range between 9-12 months.
B.
An exclusive agreement provides that the business broker under contract is the
only business broker authorized to sell your business for the time period
allotted. A business owner under
Non-Exclusive agreements opens his or herself up for litigation should two
different brokers work the same buyer – assuming both brokers have followed
proper disclosure processes.
C.
The business broker’s fee is NOT negotiable under typical listing agreements.
BEWARE of the broker who offers to negotiate their fee – this type of broker may
lack the confidence and drive to sell your business.
BEFORE
agreeing to this fee – make sure that the broker has outlined for you exactly
what they will be doing for you and should include…
1. Determination of a Market
Value for Listing
2. The listing
3. Buyer Marketing
4. Qualify Buyers
5. Get Qualified Buyers
under Confidentiality
6. Full Disclosure to Qualified
Buyers
7. The Tour with the
Qualified Buyer the Business Broker and You
8. The Business Financial
Review to the Qualified Buyer
9. Due Diligence - Getting
Updated Info for Qualified Buyer
10. The Offer
11. Offer Negotiations
12. Accepted Offer
13. Due Diligence Making
Sure All Contingencies Are Met
14. Due Diligence Making
Sure Financing Is In Place
15. Other Due Diligence
Making like Lease or Real Estate
15. The Closing and
Dispersal of Funds
Good business
brokers are a trained intermediaries experienced in the confidential sale of
businesses for sale to qualified buyers. They usually work for and are
compensated by the seller though some brokers do represent the buyer.
The benefits to
a business owner using a good business broker…
1. Protect Confidentiality
at all times
2. Qualified
Buyer Processes
3. Financing
Buyers through SBA acquisition lenders
4. Placing top
market value on the business
5. Continuously
targeting and finding new qualified buyers
6. Strategic
process to getting offers
7. Strategic process to getting to close
Hiring
a good business broker is the most important thing you can do in selling your
business. Like all other businesses, there are good and bad business brokers.
You should feel comfortable with who they are and be comfortable with how they
have represented themselves.
A good business
broker represents the seller from buyer qualification till the closing. The
business owner can run his or her business while the business broker manages
the entire sales process.
A good business broker is like a sports
referee who does a great job – nobody knows he or she is there. The same can be
said for a good business broker – they work in the shadows and nobody knows
that the business is for sale or sold.
-NAABB
Broker Service Network
Business
brokers are needed to protect the integrity of a business for sale transaction.
Confidentiality is the KEY COMPONENT. A good business broker not only finds and
brings in qualified buyers but he or she is also an expert at taking the
process from offer to closing.
If you are looking for a
business broker who will represent your best interests then contact River City Business Alliance at (817) 710-5893 for a confidential NO OBLIGATION meeting.
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