What is a Business Broker?
If you have been considering selling your business, the words business broker have surely popped up on your radar recently. But what is a business broker and why would you use one when trying to sell your business? A business broker is a person who helps people buy and sell small and medium enterprises. These agents each specialise in companies belonging to specific industries that they are well versed in, to assist their clients in achieving their objectives and ultimately, selling their business.
14 June 2022
If you have been considering selling your business, the words business broker have surely popped up on your radar recently. But what is a business broker and why would you use one when trying to sell your business?
A business broker is a person who helps people buy and sell small and medium enterprises. These agents each specialise in companies belonging to specific industries that they are well versed in, to assist their clients in achieving their objectives and ultimately, selling their business.
Understanding a Business Broker
Selling a business and going through the process of transferring ownership can be a perplexing process. This process includes a proper and accurate business valuation, ensuring that all records pertaining to the finances of the business for sale are in order, negotiating the best possible price, and finally closing the deal.
A business broker manages all the different elements of this process and ensures it’s done under complete confidentiality. Business brokers can work both independently or as part of a brokerage firm. Business brokers can also assist with licensing and permitting requirements, as well as weeding out unqualified buyers.
What are the Benefits of Using a Business Broker?
There is a long list of benefits associated with using a business broker when trying to sell your business. A few of these include:
Identifying Qualified Potential Buyers
A business broker knows how to spot a qualified potential buyer from a mile away, and the same goes for unqualified buyers. Before a business broker entertains a new buyer, they make sure that they have the financial capacity to purchase the business at value and are serious about making an offer.
Ensure 100% Confidentiality
You may not want your competitors, staff, or clients to know that you are in the process of selling your business. A Business Broker will ensure that all sale information stays strictly confidential. A Business Broker must 'classify' all potential buyers as serious buyers after they sign a confidentiality clause. Only then is the potential buyer presented with information about a business for sale.
Business brokers reduce the likelihood of potential buyers falling back on their financial obligations. It is their responsibility to request financial disclosure from a potential buyer. Their previous transactions and experience in qualifying buyers significantly reduce the likelihood of a business deal falling through.
No Need for Confusing Paperwork
Being a business owner, you are probably already drowning in paperwork. Luckily, a business broker will provide and navigate you through all of the legalities and paperwork.
List of Business Brokers
If you Google “list of business brokers’ you will get hundreds of different names, reviews, and options. But let’s simplify the process. Business for Sale is one of Africa’s most comprehensive online resources for selling a business or franchise. With a full listing of business opportunities, business broking tools, valuations, marketing, and advertising tools, Business for Sale is the perfect business broker and is right in your pocket! Contact Business for Sale today!
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When you’ve decided it’s time to sell your business there are a few specific steps that need to be taken by every seller. These steps make up the perfect checklist for selling a business and if you miss one it might lead to you making big mistakes within the selling process. This article will discuss the different steps you need to take to sell your business. A checklist can be a lifesaver when selling a business, so let's take a look at what one should include.
With Business for Sale, buying or selling a business has never been easier. We have the ideal tool for you if you are an entrepreneur or are selling a business on behalf of a client. So, if you were looking for a way to speed up the selling process, list it with Business for Sale today!
If you're thinking, "I need to sell my business quickly," it's critical to list your business on the right platforms that can give you access to the perfect potential buyers. Business for Sale does just that! Our packages are designed to meet the needs of both entrepreneurs and professionals. Whether you're a business owner looking to sell your company or an agent looking to market various businesses to the right audience, our platform will help you. Visit Business for Sale today!
Selling a franchise isn’t the easiest process to complete in the world. The major confusion comes in when a business owner needs to answer the question: “how to sell a franchise?” Deciding that it’s time to sell, and actually successfully selling are two completely different concepts. However, it's important to strike when the iron is hot and not to delay the process unnecessarily.
Believe it or not, selling your business has never been easier. If you are a business owner trying to sell or someone selling a business on behalf of someone else, Business for Sale is the secret weapon you'll need. With our online broking platform, you can prepare market-related valuations of your business while emails, enquiries, and marketing activities are managed from a central point.
It’s always important to know your worth! A business valuation is a process of estimating the economic value of a company; as this provides owners with an unbiased assessment of its worth. A business valuation is often performed when an owner wants to sell all or a portion of their business or franchise. A business valuation calculator assists buyers and sellers in determining an approximate estimate of the worth of their business. Two of the most typical business valuation methods start with either yearly sales or annual profits, which are then multiplied by an industry multiple.
Franchising can be the perfect opportunity for business owners to expand their business. After all, it’s the franchisee’s responsibility to invest their own capital and therefore they will work hard to ensure that their investment is profitable.
The decision to sell a franchise is a big one that should be planned and prepared for carefully. If you are a franchise owner currently, chances are you have put a lot of money, time, and effort into the business. It makes sense that with this investment, you want to get the best possible price when you sell. The trick is to use the right steps to ensure a successful sale and a favourable outcome!
Starting out as a business broker may seem daunting; there are many who have been in the business for countless years who have all the connections that those just starting out would truly benefit from. This is where new brokers need to pluck up the courage to speak to those with more experience, and perhaps even form relationships with financial professionals, accountants, attorneys, and other professionals related to the buying and selling game. The right connections will put the broker a step ahead.
There are many small business owners who successfully manage to sell their businesses without using a business broker. There are a few benefits of selling your business without unnecessary third parties – a major one being that the business owner can avoid the transactional fees or commission that the business broker will require from the sale.
Accurate figures can help business owners determine the asking price and how much room there is for business negotiation. Potential buyers should not be chased away by unfair asking prices and negotiations that can’t be justified. Equipped with the right facts and figures, fair business negotiations can run a lot more smoothly.
Whether you’re a new franchisor, or one that has been around a few years, finding the right platform to sell on (when you’re ready to) can be tricky. Many business buyers are opting to buy a franchise rather than a standalone business, because of all the benefits and security of buying a franchise offers. Business for Sale provides an interactive online platform for those looking to buy and sell their businesses. Why would you use a business directory to sell your business? There are a few great reasons!
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