As a business owner, it is important to understand the role and services provided by a business broker or business intermediary. A qualified broker should be responsible for the following:
• Advise the seller on how to prepare the business for sale
• Furnish the seller and buyer with current market information
• Help the seller establish the selling price
• Discuss and educate both the buyer and seller on financing options and how financing can effect the sales price
• Create a confidential business review (CBR)
• Promote the business for sale
• Work with other agents
• Analyze market feedback and present this to the seller
• Help maintain confidentiality of the business
• Qualify buyers
• Introduce qualified buyers to the business
• Follow up with prospects
• Solicit offers for the business
• Orchestrate the negotiations
• Manage the due diligence process
• Maintain a marketing effort so there are back-up offers
• Supervise the close of escrow
• Help with any post-sale matters.
As you can see, there is a lot of work to be done if the broker is providing the highest levels of service. Make sure when choosing a broker, they are both qualified and committed to performing the above responsibilities. This will not only increase your likelihood of finding a qualified buyer, but it will also increase your chances of having a successful closing.
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1 comment:
Thanks for your post Larry. I am a business broker in Toronto and I provide similar services to my clients. However, I personally find that I can't provide this same level of service to all of my sellers. An obvious reason is that not all sellers have the motivation needed to sell their business. Of course seller qualification is necessary before accepting a listing, but that still doesn't guarantee that The seller is serious and will remain serious during the whole selling process. People do change their minds about selling their business for multiple reasons. I would strongly recommend to serious business sellers to keep constant contact with their brokers to let them know their motivation for selling.
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