Business broker Los Angeles is your friend when you decide to sell your business. Although you have been running your business for years, you are definitely not the right person to sell it. You are emotionally involved. Working with a broker is the right way forward. However, before you consider hiring a business broker LA, it is important that you begin by understanding the role he will play.
Draft confidentiality agreement and the offering summary
The first duty of the business brokers Los Angeles is to draft the confidentiality agreement and the offering summary. The confidentiality agreement is the legal document that burrs potential buyers from disclosing any information about the business. It has to be foolproof and needs to be signed before the potential buyer can be given more details. The offering summary, on the other hand, is the marketing tool that tells more about the business and lures the buyer in. These are two important pieces of documents that are drafted by the LA business broker.
List the business
Another thing that the broker needs to do is to market the business to the widest possible audience. This is done by advertising on their website and posting on various listings. Unlike the real estate agents, a business broker will never put up a ‘for sale’ sign outside your offices. The broker will market your business widely while at the same time maintaining confidentiality.
Qualify buyers and facilitate meetings with the seller
It is important to note that the business broker is the person who qualifies potential buyers as well as facilitates meetings with the seller. When qualifying a buyer, the broker checks to make sure that the buyer is a serious one and that he has the means to pay. Second, the buyer is asked to sign the confidentiality agreement before the offering summary is provided to him. If everything goes well, the business broker Los Angeles can make arrangements for the buyer to meet with the seller for further discussions.
Take on the role of the bad guy during negotiations
An important role taken by the business broker LA is that of the bad guy. Negotiations can be pretty heated. Friends can become enemies and reputations can be damaged. The main responsibility of the broker is to cushion both the seller and the buyer. When there are bad news to be delivered, the broker will deliver the news in a manner that doesn’t hurt the seller or the buyer.
Assist the buyer to acquire financing
Having many professional connections, business brokers Los Angeles are able to help buyers obtain business acquisition financing. This enables the parties involved to close fast.
Schedule and facilitate closing
Last but not least, it is the responsibility of the Los Angeles business brokers to schedule and facilitate closing. This is done by pushing all the necessary paperwork and helping the parties with everything from taxation to planning for succession.
As you can see, the role of the business broker Los Angeles is huge. Make sure that you hire someone that is committed to what he does.