Business broker Orange County will make it easier for you to sell your business fast while at the same time shielding you from the pain involved in the process. He will help with marketing, negotiations, business valuation, all legal issues as well as help you manage your expectations. All in all, before you get into business with Orange County business brokers, there are a couple of things you need to understand about the listing agreements. This post will be focusing on the types of listing contracts.
Exclusive listing
This is the most common contract you will get into once you make up your mind to work with a business broker Orange County. Brokers prefer this agreement because it keeps you from having your business promoted by other brokers. This means that he gets the full commission once the sale is completed. The agreement is preferred because the business broker gets the full return on the time he invests in marketing, packing and selling your business.
All in all, before you sign this contract, make sure that the business broker you are about to sign a contract with has a good reputation when it comes to selling businesses fast. You don’t want to be locked in a contract that doesn’t bring any value to you. Remember that with this agreement, even if you find the buyer yourself, you will still have to pay the business broker his commission.
Open listing
This is yet another common contract you might need to get into. It is a non-exclusive listing agreement. With this agreement, you can use more than one business broker Orange County. You can also sell the business yourself while in the contract. The best thing about this agreement is that you don’t have to pay the broker any commission if he doesn’t help you sell the business. The commission is paid to the broker that finds you the buyer.
Although this agreement seems attractive, not many Orange County business brokers will choose it. This is because they want to ensure that they get paid for their efforts. Second, because there are so many people involved in the sale, the process might become troublesome. This is particularly so if you wish to sell your business confidentially.
Exclusive agency listing
This type of listing allows you to sell your business on your own and not have to pay any commission to the broker. The catch, however, is that you must only use one business broker. You only can use the single broker that you contracted with. The broker gets the commission if he brings in a buyer.
A listing agreement is a legal agreement between the seller and the broker. You must adhere to the terms set in the contract. Prior to entering any listing agreement, you must always make sure that you understand the strategy that the broker will be using to sell your business. There are so many brokers out there that focus only in locking you into a contract for their own gain.