Want To Sell Your Business? A Major Consideration…
Columbus, OH, 08/17/2009-If you are a business owner and want to sell your business there is one major thing to consider; hiring a business broker for assistance. The following is a simplified description of what a business broker does, and a list of the benefits of using a business broker for the sale of a business.
What is a Business Broker?
A Business Broker is the intermediary between the buyer and the seller of a business. The broker will handle all communication between the buyer and seller of the business and will keep all information about each party confidential until a confidentiality agreement has been signed by both parties.
The Functions of the Business Broker:
Assist owner of the company compile all of the necessary documents needed for the valuation and sale.
Perform a valuation of the business for sale in order to discuss with the owner what a reasonable and fair listing price will be.
Create a description sheet for the business listing and list the business for sale.
Contact known buyers and let them know that there is a business for sale that may interest them, and otherwise promote the business for sale listing.
The broker will screen and qualify unknown buyers so as not to waste the current business owners' time with unqualified buyers.
Assist both parties, and be the mediator for all negotiations up until closing while keeping both parties completely satisfied.
Prepare both parties for and assist with the closing process.
Reasons to Use a Business Broker for the Sale of a Business:
- CONFIDENTIALITY: This is the main reason a business broker exists. An owner can't just stick a FOR SALE sign in the window of a business and have business continue as usual- Employees, customers, creditors, and others, will all see that sign. A Broker will keep your listing confidential up until the day of the closing.
- FOCUS: A Broker focuses on selling your business, so the owner may continue to focus on business as usual and that is something that is completely necessary. A potential buyer will see how a business is currently operating and if the owner cannot stay focused the business will start to show it and will not be appealing to that buyer.
- VALUE: A broker will be able to provide a valuation of the business, which in turn will provide the business with a fair and reasonable listing price. A broker usually sells a business for 20% more than that of a non-brokered sale and will sell the business much faster than a non-brokered sale.
- BUYERS: Brokers have worked with many buyers in the past and still maintain contact with those buyers in case another business comes along that may interest them. Also, a broker will have resources that will put them in direct contact with potential QUALIFIED buyers if none in the usual inventory of buyers are interested.
- MARKETING: A broker knows how to market a business to a broad but targeted audience while maintaining a highly confidential status.
- FINANCING: Brokers have resources available to them to assist a buyer in securing financing, which will expedite the sale of a business
- NEGOTIATION: A broker will take a win-win approach through the negotiation process as a third party mediator. If the buyer and seller were to negotiate directly, it could become a very heated and offensive argument that resulted in a non-sale.
For all of that service, the broker will ask for a commission fee of anywhere between 5%-15% of the sale price, depending on the market conditions and industry. That may seem like a big price to pay, but if the owner can sell their business for 20% more because they hired a broker it is well worth it.
For further information please visit www.rodgersandco.110mb.com and visit the "Contact Us" page and we will be happy to answer any questions.
About Rodgers & Co Business Brokers:
A Columbus, Ohio business broker that is dedicated to making the buying and selling of businesses as simple as possible while maintaining a highly confidential status.
Rodgers & Co Business Brokers,
Ryan Rodgers,
Business Consultant,
614-668-0923,
rodgersryan@yahoo.com,
www.rodgersandco.110mb.com
Article Source: ArticlesBase.com
