All About Business Transfer Agents

comments (0) August 21st, 2019     

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Don't rush into making your choice. Take your time to speak to several agents to get a feel for how they do things and what they charge. All good brokers will be more than happy to give you a free initial no-obligation consultation or at a minimal fee. And get three or more proposals. Choose a broker who has proven expertise in your business. 

Some brokers specialise in certain markets or sectors clearly, it makes no sense to offer your restaurant through a broker that specializes in selling care homes. Ask about their contacts database in addition to their technical competence. Ask to see references and testimonials from named clients. If possible, speak with previous customers to see what they thought. 

Check what credentials the broker has. Some are members of the International Business Broker Association that at least guarantees they will function in accordance with a professional code of conduct. Ask about their methodology for marketing your company and ask to see samples of printed literature and particulars available for other businesses. Great brokers should provide a tailor-made marketing strategy your company needs to stand out. 

Be certain who will act on your behalf. You want to be sure you have an experienced agent as a single point of contact; someone who won't be wasting your time studying at work. Make sure that the broker you'll work with is someone you prefer, is personable and you feel you can trust. Selling a business can be a time-consuming process, taking on average between 6 months and two years. 

It's crucial that you have a positive working relationship, which you feel the broker understands your position and has the same level of motivation to achieve the deal as you do. By the same token you want to complete the deal as quickly as possible, so pick a broker who's responsive, a good communicator and someone who is prepared to make themselves accessible out of hours where necessary. 

Do not go for a broker who gives your company a value that seems too good to be true, because it probably is! While it's hard not to feel flattered when someone places a high value on the product of your own blood, sweat and tears, marketing your company for an unrealistic price runs the risk of putting off otherwise viable prospective buyers in addition to your business the unwanted stigma of being available for a lengthy time period. 

Truth should warrant every valuation provided to you by a broker. Make sure that you have written confirmation of what and how the business broker fees will be billed and double check the small print. Whilst it is usual for agents to charge a beginning retainer, this should be minimal. Be sure the majority of the fee is contingent on sale and calculated as a percentage of the final sale price. If you've already appointed a specialist business attorney, he or she is most likely able to recommend a good business broker for you. 

This offers dual benefits: you have the reassurance of a broker recommended by a professional you trust and you also reap the benefits of working with a team who have worked together on previous deals and who share the exact values. And, finally, expect questions! A good broker will want to know as much about you and your organization and goals as you do about them. They ought to show a real interest in your trade and convey a passion for what they do.

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