You have decided to either buy a business or sell your business. Although biased, the best advice I can give is to retain the services of a business broker/business transfer advisor. Business brokers work for the seller, but there are also sell-side and buy-side brokers. Even if you are a buyer and need to retain the services of a business brokerage or transfer advisor, you will still benefit from the fact that a business broker is working alongside the seller.
The broker acts as a clamp to hold everything together while the seller and buyer move through the business transaction. I will explain below how both the business buyer and seller can benefit from the services of a business broker.
Let’s meet-
The great thing about being a business broker is that face-to-face meetings are required. The broker gets paid by the seller of the business. However, the buyer must meet with the broker to see the company and determine if they are a good fit for the buyer.
This meeting will be conducted in an interview format. The broker will ask the following questions:
1- Can you go into detail about your background?
2- Have you ever bought a business?
3- Do you have access to cash easily to purchase a business?
4- Can you show evidence of the proceeds on a bank statement recently?
5- When are you ready to buy?
You will be asked questions and given a financial statement. This information must be returned as soon as possible.
Usually, after the meeting, the business broker will present the buyer with a compatible business. Bring a bank statement that shows the cash. It is important to be on time. Move quickly and strike while the fire’s still hot.
The broker will ask you to sign an agreement that prevents disclosure. The business’s seller wants to ensure that no one else knows about it.
You can view the financial information of the business you are interested in. The broker may also have other companies that interest you. If you are serious about any of the presented businesses, the broker will give you more detailed financial information and arrange to meet you in person.
The broker is the best contact person for the buyer. The broker will answer any questions the buyer might have about the business.
How the business broker can help the seller
A business broker is a great option if you own a company and want to sell it. While you run your business, the broker will manage the whole process.
The business broker will interview all buyers. This service is well worth the brokerage fee. Most business brokers have access to a list of buyers accumulated over the years. These buyers have shown financial ability and compatibility to buy a business. A list of potential buyers can speed up the selling process and make it easier to sell the company while it is still “hot.”
A business broker will prepare a marketing plan specifically for the company. Although a sales prospectus can take some time to prepare, your broker will be able to provide this document. The broker will also help you to complete the paperwork and structure the deal.
A lot of business owners need to learn what their business is worth. The broker can help you price your business. The pricing of the company is only a starting point. An appraisal will be provided to the buyer. The negotiations will begin between these numbers. You also want to make sure your business is priced correctly. Your business must be reasonable and reasonable. A well-priced company will sell. The final price of your business will depend on what it sells for or how brokers view the marketplace.
A business broker is a valuable member of a seller’s transaction team. The broker will bring years of experience to the table. This will benefit the seller and buyer and ensure both sides are satisfied.
