[product_feature title_color=”#be9f2a” title_font_size=”22″ description_color=”#555555″ description_font_size=”14″ icon=”fa-lightbulb-o” icon_color=”#ffffff” icon_bg_color=”#1a398b” icon_size=”22″ title=”Bringing People With Common Interests Together”]Business brokers build professional relationships with parties that buy companies, and have the finances readily available to arrange deals with sellers. Most business brokers worth their salt will have a group (or multiple groups) of potential buyers that deal with specific industries and types of business models, so that sellers can be assured that their companies are in good hands during and after the transaction. A business broker will find out the requirements of sellers, and then try to match them with potential buyers – acting as a liaison between both parties in order to get both parties to come to an agreement, while allowing them to preserve their respective interests.
[/product_feature][product_feature title_color=”#be9f2a” title_font_size=”22″ description_color=”#555555″ description_font_size=”14″ icon=”fa-lightbulb-o” icon_color=”#ffffff” icon_bg_color=”#1a398b” icon_size=”22″ title=”Exit Strategy”]Business owners sometimes need an exit strategy. Some entrepreneurs are looking to move onto other ventures, or they simply want to retire from their industry. Instead of placing an ad announcing the sale of the business – which would cause the value of the company to plummet – they see out business brokers to arrange a deal with a buyer in order to get the highest price possible for their business. Business brokers help owners get the best price for their companies, while also ensuring that the business is getting purchased by someone who will continue the successful track record.
[/product_feature][product_feature title_color=”#be9f2a” title_font_size=”22″ description_color=”#555555″ description_font_size=”14″ icon=”fa-lightbulb-o” icon_color=”#ffffff” icon_bg_color=”#1a398b” icon_size=”22″ title=”Valuation”]Business brokers have to balance getting top dollar for their clients’ businesses, while also keeping the price and terms attractive to buyers. To do this, a business broker uses a number of formulas based on the type of industry, financial history, profitability, assets, liquidity, and other factors relevant to the company. The broker then uses those numbers to figure out a profit margin to add on top of the valuation, so that the business owner can sell the company at a realistic price.
[/product_feature][product_feature title_color=”#be9f2a” title_font_size=”22″ description_color=”#555555″ description_font_size=”14″ icon=”fa-lightbulb-o” icon_color=”#ffffff” icon_bg_color=”#1a398b” icon_size=”22″ title=”Siding With The Seller”]Most business brokers operate under the claim that they do not get paid until their clients sell their businesses. This gives business brokers an incentive to get the best price for their client’s business when trying to match the seller’s requirements to a potential buyer. A good business broker will have no problem rejecting offers that fall short of the seller’s expectations, and then working to negotiate a deal as offers get closer and closer to the target selling price and conditions that were laid out at the beginning of the relationship.
[/product_feature][product_feature title_color=”#be9f2a” title_font_size=”22″ description_color=”#555555″ description_font_size=”14″ icon=”fa-lightbulb-o” icon_color=”#ffffff” icon_bg_color=”#1a398b” icon_size=”22″ title=”Confidentiality”]It is essential that a business owner’s employees, customers, and competitors do not find out that the company is being sold. This can cause loyalty to falter, and decrease profitability – and therefor lower the value – of a business, making it harder for a business broker to get top dollar on a sale. Before engaging any buyers, business brokers and all parties involved usually sign non-disclosure agreements in order to keep any information about the potential sale under wraps until after everything is finalized. This allows the business broker to drum up offers from buyers by teasing information without blatantly announcing which business is for sale, or who the seller is.
[/product_feature][product_feature title_color=”#be9f2a” title_font_size=”22″ description_color=”#555555″ description_font_size=”14″ icon=”fa-lightbulb-o” icon_color=”#ffffff” icon_bg_color=”#1a398b” icon_size=”22″ title=”Legalities”]All business brokers are well-versed in federal, state, and local legal guidelines in order to structure a deal that is amenable to both the seller and the buyer. However, sometimes both parties want to place special conditions and covenants into the agreement, at which point the seller, buyer, and the business broker should consult with their respective lawyers to make sure the transaction will still go smoothly.
[/product_feature][product_feature title_color=”#be9f2a” title_font_size=”22″ description_color=”#555555″ description_font_size=”14″ icon=”fa-lightbulb-o” icon_color=”#ffffff” icon_bg_color=”#1a398b” icon_size=”22″ title=”Commercial Financing”]There are situations in which a buyer is seeking an existing company to purchase, but the price is outside of what they have to offer. In these cases, a business broker might want to suggest the buyers seek external financing, and work those terms and conditions into the agreement. Sometimes commercial financing can be arranged so that the seller is directly involved to ensure the business stays successful during the transition in ownership until the financing is paid off. Again, the terms of commercial financing will dictate how involved both parties are in the transition, and for how long.
[/product_feature]