Business Broker Orange County - How Does a Business Broker Orange County Facilitate the Sale of a Business?
Business brokers Orange County make their living by earning commissions. How soon they earn the commission depends on how fast the close the deal. The amount of commission they get will also depend on how much they sell a business for. It is obvious that throughout the process, a business broker has your best interest at heart. But how exactly does the broker facilitate the sale of your business?
Help with business valuation
In the sale of a business, the price has to be set right. One of the duties of the business broker Orange County is to set the right price. The asking price has to be set in a way that it leaves room for negotiations and in a manner that it doesn’t lead to losses. To do this, a broker first does a business valuation. This helps determine the actual value of your business. He will then consider the prevailing market trends prior to setting the best possible price. Setting a fair asking price is what causes more buyers to come knocking and give an offer.
Market to his contacts and more
Setting the price is not the only thing the broker will do. The business needs to be promoted to the right buyers if you wish to sell it fast and at the best price. Business brokers Orange County do this by marketing the business in listing sites and also to his personal contacts. This leads to a wider market reach. The best thing is that marketing is done while maintaining confidentiality. This is not something your will be able to do when selling on your own. A broker will help sell fast because most buyers trust listings from reputable brokers than from individual sellers.
Draft confidentiality agreements
Still on confidentiality management, one of the duties of the business broker Orange County is to draft a foolproof confidentiality agreement. Buyers have to sign this agreement before confidential information is given to them about the business that is being sold. Maintaining confidentiality is important in the sale of a business. The last thing you want during the sale is for customers, suppliers, lenders and employees to leave you because of their fear of the future management. If these people abandon you, the value of your business will plummet.
Negotiate objectively with buyers
A business broker will help with negotiations. If you have sold anything that is personal to you, then you know how easy it is for emotions to get in the way. This is the same case when selling a business you have developed from the ground up. Emotions can blind you from the best deals. A business broker is emotionally detached and professional. He will play the bad guy and get you the best possible deal.
Help with financing
Did you know that business brokers Orange County can help with financing? The reason most business buyers never go through with the purchase is due to the lack of funds. A business broker will provide buyers with the best financing options thus facilitating the sale.
Business Broker San Diego - A Close Look at the Brokerage Process Used by a Business Broker San Diego
Business brokers San Diego bring buyers and sellers together. This is their chief function. However, this is not the only thing that the broker you bring on board will do for you. The process of closing a deal is far more complicated and the broker will help every step of the way. Once you bring a business broker on board, there are a couple of things he will do to complete the process successfully. Below is the typical brokerage process.
The first thing a business broker San Diego will do for you is to attempt to set a target for the completion of the transaction. This is done through the letter of intent that the buyer and seller agree on. The best thing about this is that it gives the framework to structure negotiations. In the case of selling a business, the broker will first make sure that you are a serious seller. You will then be required to sign a contract that gives the broker the go ahead. The broker will then set an asking price based on business valuation and set a date on which the sale should be completed.
Close price gaps
With the goals in mind and the sellers consent, business brokers San Diego proceed to sealing the price gaps which may arise during the negotiations. Bearing in mind the commission the broker earns depends on how much he sells the business for, he will be very ruthless in closing the price gaps. He may advice the buyer to start by working on the flaws of his business in order to achieve a higher selling price. The broker will further draft a confidentiality agreement which keeps the sale a secret so as to avoid the risk of employees, customers, suppliers, lenders and other important parties from leaving the business during the ale. It is also the duty of the broker to come up with a structure that minimizes the tax burden.
Overcoming seller’s remorse
The seller’s remorse is a common occurrence in the latter stages of negotiations. There have been cases where sellers pulled out of the deal in the last minute after the reality of relinquishing control of their business hit them. If a seller pulls out, the broker will not earn anything is the seller withdraws from the sale. As a result, overcoming the seller’s remorse is something business brokers San Diego take seriously. Small acts such as allowing the owner to keep the company car can help solve this problem. Other times, deals can be made where the seller remains as a consultant and so on.
The fourth step is to get the paperwork in order ad handle meet all legal requirements. This is a very important step in the sale of a business. Business broker will take care of this part before the sale begins.
Last but not least, the business broker San Diego will help with the closing. He helps the parties involved to iron out as well as sign final contracts. During this time, the broker mostly serves as a mediator and peacemaker.