Business Brokering for your Business



What is a Business Broker?
A business broker is an agent who arranges the buying and selling of businesses on behalf of a client. The broker is a specialist, with skills that can assess a business for sale, organise parties interested in purchasing the business, deal with the potential buyers, and also the client (the seller).  Therefore, business brokers act as mediators between two parties; the buyers and sellers of businesses. They are responsible for most of the businesses sold today.


Brokers Must be Trained
A qualified professional business broker must have training and experience in the following areas:

  1. How to own/run a profitable business.
  2. Profit & Loss Accounts
  3. Balance Sheets
  4. Leases
  5. Basic business law including contracts.
  6. Appraisal or valuations of businesses.
  7. Knowledge of general industry GP margins.
  8. Marketing and sale skills.
  9. Negotiation techniques.
  10. Legal and financial areas generally.
  11. Brokers Must Act Fair


Benefits from Brokers
Business brokers are preferred because they maintain confidentiality. Also, they usually have a database of screened, potential buyers. These qualified prospects, with the necessary funds available for purchasing, can be presented to the seller of the business.

Business brokers are therefore good representatives to have for advice when you are buying or selling a business. If you are buying a business they can provide you with a list of businesses for sale from their contacts, as well as from their database of businesses listed with their firm.

They are able to find information on a particular business (should you require it), and with the consent of the owner they can show you around the facilities and the operation of a business you may be interested in.


What Brokers can do for your Business

  • Match Buyers and Sellers
    If you are a seller, the broker can evaluate potential buyers and introduce only qualified buyers to you. If you are a buyer, the broker can fully investigate before you inspect and assist you look for the right business that fit your specific requirements, abilities, budget and future plans.

  • Arrive at a Fair Price
    The broker with his experience and knowledge of the market and the particular industry will help you arrive at the right market value for your business, so it will sell quickly and not left hanging unsold because it was overpriced.

  • Third Party Advantage
    There is considerable benefit in having a professional go-between to handle negotiations between the parties. A broker can speak openly with either party and keep discussions between the parties sensible, fair and emotions “cool”.

  • Confidential
    A good broker will maintain absolute confidentiality for the client so no one need know the business is on the market, except potential buyers covered under a confidentiality agreement. Employees, suppliers, bankers and creditors get nervous once they learn the business is for sale.

  • Comply with Regulations
    An experienced broker will be familiar with all requirements to do with licences, permits, regulations etc, so sellers and buyers do not run into problems.

  • Sound Advice
    The broker has the knowledge to provide a sound opinion on all business matters – or he will know which way to point a client.


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