Why use a Business Broker?
Who are they and what do they do?
As an Entrepreneur who wishes to buy or sell a business, you might be wondering if it’s really good to consult a specialist broker or not. Apart from selling , you might just wish to know what these Licenced Agents main responsibility and duties are and what they do.
Business Brokers are Agents who facilitate the sale of small to medium size enterprises by working with both buyers, sellers & their advisors to obtain the best possible result.
A broker’s main focus is helping people buy or sell a business. They are professionals in what they do and have inestimable knowledge and experience when it comes to business trading (i.e. buying and selling ). They are people who understand the local market and can guide you and prevent you from making harmful mistakes.
How a Qualified broker can help someone Buy their business.
Business Brokers who are appointed as a Buyer’s Agent have access to several other agents Listings and will have an educated opinion of what will best match todays Buyers Criteria and Budget. They commonly work in conjunction with Immigration and Relocating Specialists on behalf of overseas or interstate buyers who are not familiar with the local Financial Environment.
How a business broker can help someone SELL their business.
Making a decision to sell your business is a very big step. Possibly it may be because you are retiring, or you just want a change of business or lifestyle. In some cases, the decision may come about due to health reasons. Whatever the case may be, your business is your valuable belonging, and as a result you are extremely protective of it. Business brokers understand this and recognize that it’s not just about selling the business. It’s about getting to know who the seller is, so that they can find a like-minded buyer who can take the business to the next level. Based on initial meetings with a seller, and after reviewing pertinent documentation such as financials, lease and or franchise agreements, the first step to having a successful sale is to correctly “value” the business.
A Business Broker is likely the best person to provide a price range. They can then advertise your business for sale, (without disclosing its name or location). Handle potential buyer inquiries, control negotiations, and finally assist in the closing process.
The procedure of selling a business is complex and time consuming, so using a Business Broker will allow you to continue focusing on the operation of the business and in turn maintain the value until the point of settlement.