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Business Brokerage

Business Brokers

Business brokers perform many duties including:

  • Pricing the business with a professional valuation.
  • Marketing the business to the widest possible audience while maintaining strict confidentiality.  This is one of the important distinguishing differences between business brokers and real estate agents.  Real estate agents put a sign in front of their properties and typically without the need for confidentiality, advertise widely the specific location.  Business brokers are trained to maintain strict confidentiality.
  • Introducing prospective buyers to the business after ensuring confidentiality agreements have been executed.
  • Facilitating meetings between the seller and potential buyers.
  • Handling negotiations between the parties after an offer has been made.
  • Assisting the buyer in obtaining business acquisition financing.
  • Scheduling and facilitating the closing of the transaction.

Top 3 Issues Involved in a Business Transfer

  1. Confidentiality. Confidentiality is critical to the successful transfer of a business.  If it becomes known that a business is for sale, several things start happening and none of them are beneficial for either the seller or buyer of the business.  Business brokers are keenly aware of this and are experts at maintaining confidentiality.
  2. Valuation.  The issue of valuation is of critical concern to both buyers and sellers of businesses.  Business brokers are professionals in determining the most probable selling price of a business.
  3. Financing. Business acquisition loans were difficult to obtain in the recession of a few years ago.  Currently, however, banks and the SBA are again loaning money for business acquisitions.  Business brokers stay informed as to the type and source of loans that are available from various lenders and assist buyers in arranging financing.