If you are trying to sell your business or if you have been thinking about investing in a business, you have probably considered using a business broker. A business broker is similar to a real estate agent for businesses. They can assist you in getting the necessary paperwork together and advertising your company to potential buyers. They can also screen potential buyers for you.
Before you hire a broker, you should know a little bit about them and what you should look for in terms of their experience. You should also know the basic steps they will take to sell your company
What Qualifies Someone to Be a Broker?
Requirements to work as a business broker vary from state to state. For example, fifteen states including Arizona, California, and Colorado, require that brokers be licensed.
In the state of Oregon, they only need to be licensed if a real estate transfer is part of the transaction. The state of New Jersey requires business brokers to have a hundred and fifty hours of pre-licensure training.
A business broker should have good communication skills, a knowledge of the law, and some training in accounting and financial analysis.
Do They Have Professional Organizations?
Most business brokers belong to their local Chamber of Commerce. There are also several professional societies devoted to business brokers. The International Business Brokers Association is the best known of these organizations.
What Basic Steps Will a Business Broker Take?
A business broker will help you get all of your paperwork together. This includes copies of several years of tax returns, deeds, or mortgages for any property that is in the business’ name, as well as copies of any leases you may have.
A broker can also help you assess the value of the furniture in your office as well as any office equipment that you have. Depending on the kind of business you own, there can be a good deal of intrinsic work in this step of the process.
They may be able to advise you as to a fair asking price and tell you if they think your business is worth selling at the time you want to sell it.
They will then assist you in finding a buyer by putting ads on their own sites, as well as business sales and investment sites. They should also have relationships with investors and be able to contact them to tell them about your company.
They will be able to assist you with any paperwork needed to complete the sales transaction, and they will normally be able to put you in contact with an attorney who can assist you with drawing up contracts.
The decision to sell your business is a major one and it should never be entered into lightly. Your business should be stable and profitable at the time you put it on the market. If you sell it when it is having financial difficulties, you may not be able to get very much money for it.
Hiring a business broker will make everything easier as a broker will give you the chance to plan your retirement or your next business venture. Click here for more information.