Business broker Orange County makes it easy for you to sell your business fast while allowing you to concentrate on the core operations of your business. This not only gives you the chance to boost the value of your business but also allows you to maintain confidentiality throughout the sale. The broker will further help you manage your expectations. All in all, before you start working with an Orange County business broker, it is imperative that you understand the different things that you can negotiate with him.
Most of the terms set by business brokers Orange County are not set in stone. You can haggle with him so as to get better terms. In this post, we will be looking at the three main things you can negotiate.
The first thing you need to negotiate is the commission. This is the most obvious things you need to do. The commission of a business broker can be as low as 5% or as high as 15% of even more. The point you need to understand is that there are no rules that dictate how much a broker can charge for his services. Some will charge you more because of their reputation while others will charge you less because they don’t have sufficient experience. You must always take the time to negotiate a better deal.
All in all, you have to understand that with some business brokers Orange County, you will not be able to get a fee that is lower than what they give you. This is more so if they have a good reputation and they believe in what they do. In this case, you just need to make sure that their services are worth the commission.
Terms in the contract (duration, conditions, listing option (agreement)
Another thing you can negotiate is the terms in the contract. Before you start working with a business broker Orange County, the first thing you will be required to do is to sign a contract. The contract outlines all the things you need to do during the sale and what the broker will do for you. The problem is that not all the terms in the contract are favorable. Some brokers use draconian terms to trap you in the contract. Make sure that you negotiate better terms.
For example, if the contract states that you will not be able to leave it until after 12 months, you can negotiate better terms that state that you can leave within 90 days or 6 months. Avoid contracts that will leave you enslaved to them. You must also consider the listing options. Although not common, the best agreement is the one that allows you to use as many business brokers Orange County as you want.
Amount of down payment
Last but not least, you need to negotiate on the down payment. This is an amount required by the business broker to take care of the initial expenses which may include the cost of advertising and business valuation. Make sure that the required down payment is fair.