subject: What Services Do Business Brokers Provide? [print this page] Business brokers are people that act as intermediaries between sellers and buyers of small businesses.
There are sometimes referred to as business transfer agents and their role consists of estimating the value of a business, advertising it for sale, dealing with the first potential buyer interviews, discussions, negotiations with possible buyers and generally helping with the sale of the business.
They are similar to retail estate agents and choosing the right broker can help your small business bring the best value possible.
What services can a business broker provide?
The services that a business broker can provide vary greatly depending on the broker but there are some services which are common amongst broker practice. These include assisting a client in working out a MPSP Value (i.e. Most Probable Selling Price Valuation); developing an Information Memorandum on the company which is essentially a document outlining the business for potential buyers; conducting buyer searches, exposure - which refers to the marketing of the businesses for potential buyers; screening buyers; taking control of negotiations and helping to keep confidentiality of the sale.
The business broker will have an overall role of managing the deal and taking the client through the whole sale smoothly.
One of the biggest benefits of business brokers is that they allow owners to stay focussed on running their businesses during the sale rather than becoming caught up and preoccupied in the sale itself which could take a very long time to complete.
Which business brokers?
There are numerous business brokering companies in the UK and it is important to choose the best business broker in order to bring the best possible price for your business. One way in which you can do this is to get referrals; make sure you get these referrals from trusted sources such as a lawyer or your accountant. You could also check IBBA which is the International Business Brokers Association. This lists over 1300 business brokerage companies and provides a professional certification process.
It would be wise to find a specialist i.e. a broker that spends all their day dealing with selling businesses rather than a part-time agent. A full-time broker can add more value to your sale and also bring in a great deal of contacts. They will also a have a greater understanding of business brokerage and the principles of business valuations. A part-time agent may not be wholly dedicated to the profession and lack dedication to the sale of your businesses.
If your business is worth a considerable amount then think about merger and acquisition intermediaries.
It is crucial in the process of selling your company that you choose the right broker for your business. She can aid the sale of your company and increase the number of potential buyers for your business. Selling your business can be a complicated business and finding the right broker can make this process go a lot more smoothly - look online to find a huge selection of business brokers. Always read up on the subject and choose your broker carefully.
by: Matthew Byatt
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