Since most business brokers operate under the radar, many individuals do not know who they are and what they really do. If you are curious and enthusiastic to know, business brokers pertain to intermediaries working with both business sellers and buyers to facilitate successful sale of medium and small sized as well as privately-owned businesses.
Business Brokers and their Main Functions
Business brokers perform many different duties including the following:
- Marketing businesses that need to be sold. Though brokers tend to advertise these businesses, they still maintain confidentiality. They do not really mention the name of the businesses that need to be sold. They also do not mention the business owner at once.
- Valuing businesses.
- Introducing potential buyers into the business.
- Facilitating meetings between sellers and buyers.
- Scheduling and facilitating closing of transactions.
- Handling negotiations between sellers and buyers after offers have been made
- Drafting confidential businesses reviews. The document is highly imperative and is given to prospects right after they signed the confidentiality agreement.
Professional small business brokers work usually with commissions. This simply means that they get commissions after selling businesses. In most instances, the commission of business brokers ranges from 8 to 12%. Majority of brokers usually charge 10% but when the business that was sold is small, expect the commission to be higher.
Working with business brokers is highly recommended but you must ensure that you will hire the right one. This would require you to do your homework and facilitate extensive research to find the best one. The vital things you need to look for in the best business broker are professionalism, specialization and experience.
If you hire the right professional, you are guaranteed to end up with the best results in your transactions. The best business broker will assure you this.