10 Oct Selling Your Business: Exactly How a Broker Helps
A business broker is somewhat similar to a realtor. Some states require business brokers to have real estate licenses, and most get licensed anyway so they can sell property and write leases. A large percentage of business owners lease a building for the operation of their business, rather than invest their capital into the purchase of a building, so they have the business for sale and not the real estate.Before a business broker lists a business, an evaluation is done; and a marketing packet is prepared to present to prospective buyers. This will give the basic information about the business, including a cash flow statement for the previous three years. This will be given to prospective buyers who sign a confidentiality agreement, as business listings are confidential. Before a buyer signs a confidentiality agreement, enough information will be given to determine if the buyer has an interest in the business.
After a buyer reviews the marketing packet, the business broker will be available to answer any questions, request additional information from the seller, and schedule an appointment to meet with the seller, usually after hours at the business because of the confidentiality. This will give the buyer an opportunity to tour the business and ask questions. The broker can assist with the questions, if needed. It is good to have a list of questions to ask so that nothing will be forgotten. The broker will be present to assist as needed. Any probing questions may be asked except actual price negotiations. The offering price is part of the offer to purchase that will be written for the buyer by the broker if the decision is made to proceed, after which negotiations may take place.
If you’re ready to sell your business, these steps are necessary, and will help you find a business broker with years of experience to help execute your sale. A great way to begin this process will be to contact Moche Hazout at Transworld Business Advisors today!