Business brokers Orange County are highly sort after because of the experience in the business of selling companies. They are the people you need to eliminate the guesswork and smooth the entire process. However, before you commit to the first broker that comes your way, you have to account for the costs that come with working with a broker. This post takes a look at these costs.
Across the globe, the majority of business brokers work on commission. The commission you can expect from a business broker Orange County can be as low as 5% or as high as 15%. There are no set limits on how much a broker can charge for his services. The important point to remember is that this commission will be a percentage of the selling price. That means if you sell your business for a million dollars, you will pay the broker a whopping $100,000 if his commission is 10%.
The commission charged by the business brokers Orange County is negotiable. For example, if the sale involves freehold property like commercial premises or factors plus the business, the commission can vary. Most brokerage firms accept a lower commission on the sale of property and a higher commission on the sale of business, itself. The reason for this is because selling a business is far more complicated than selling property.
Marketing costs and contract
It is not always that a broker will commit to the commission alone. Other times, you will be required to pay a down payment. This is meant to cater for marketing and contract costs. The majority of brokers out there will require that you share the advertising and marketing costs. These costs will vary depending on the nature of your company.
The above are just some of the costs you can expect to deal with when working with a business broker Orange County. All in all, it is good to always remember that not every broker out there will deliver on his promises. To make sure there are no hidden costs or draconian terms, ensure that you read the contract keenly prior to committing. It also pays to work with a lawyer to help you understand the contract terms better. You should also know if you will be charged for business valuation. Most business brokers will offer valuation reports free of charge. If you will be charged for the service, know upfront how much that service will cost.