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.
- The agreement normal length of listing agreements range between 9-12 months.
- 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.
- 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…
- Determination of a Market Value for Listing
- The listing
- Buyer Marketing
- Qualify Buyers
- Get Qualified Buyers under Confidentiality
- Full Disclosure to Qualified Buyers
- The Tour with the Qualified Buyer the Business Broker and You
- The Business Financial Review to the Qualified Buyer
- Due Diligence – Getting Updated Info for Qualified Buyer
- The Offer
- Offer Negotiations
- Accepted Offer
- Due Diligence Making Sure All Contingencies Are Met
- Due Diligence Making Sure Financing Is In Place
- Other Due Diligence Making like Lease or Real Estate
- 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…
- Protect Confidentiality at all times
- Qualified Buyer Processes
- Financing Buyers through SBA acquisition lenders
- Placing top market value on the business
- Continuously targeting and finding new qualified buyers
- Strategic process to getting offers
- 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.