Finding a business broker Orange County is easy. You can find the list of business brokerage firms in your area with a simple Google search. The problem is that not every broker out there has what it takes to sell your business. That is why you need to be hyper vigilant prior to choosing a brokerage firm. Understanding the process that a broker uses is the key to finding the right person for the job. Here is what a typical process looks like.
Sign the Listing Agreement
As soon as you select a business brokerage firm, the first thing you will be required to do is sign the listing agreement. This is a signed contract that gives business brokers Orange County the permission to start marketing and selling your business. The typical terms in this contract are Exclusive Right to Sell, agreed commission and 12 month term.
After the Listing Agreement is signed, the next step is to collect quantitative and qualitative information on your business. This requires an interview. The objective is to learn about your business name, location, and its history. Copies of documents needed in marketing will also be collected in this stage.
Develop a marketing campaign
With the information about your business in hand, the Orange County business broker will go ahead and develop the advertising and marketing campaign. This is normally a teaser advert. It also includes an executive summary. The materials have to be approved by you before the business broker takes the business listing lie.
Meeting with buyers
Your business broker Orange County will make arrangements for the initial phone call with a potential buyer. He will also prescreen the buyer to make sure he is a good fit for the purchase of your business and he has the means to finance the acquisition. Buyers are also required to sign non-disclosure agreements before they are allowed to see the executive summary and other sensitive information about your business. A tour will also be arranged.
A Letter of Intent is submitted by a buyer to the seller and business broker. It is what paves room for negotiations.
After submitting the letter of intent, both the seller and the buyer will want to learn more about each other. Due diligence involves free sharing of information that relate to the business. The information includes bank statements, tax returns, asset inventories, employee lists, operations manuals, and client concentrations and so on. The objective is to help the buyer justify the purchase.
This is the end of the process. Everything will be finalized and the transaction will be completed here. All relevant documents will be signed and the buyer will become the new owner after the final payment is made.
Transition and training
After closing, a transition period will follow. This step involves knowledge transfer. The previous owner educates the new owner on how to run the business. It is also in this stage that the employees will be informed of new ownership.