A business broker San Diego is also referred to as the business transfer agent. The work of a broker is to assist the seller and buyer of privately owned businesses in the selling and buying process. The broker will estimate the value of the business, advertise it without disclosing its identity, handle all the interviews with potential buyers and assist with negotiations. Simply put, the broker facilitates the process of selling a business. But why should you hire a broker?
Assist with valuation
Prior to putting your business on the market, you have to set the right selling price. The wrong price will not only push buyers away but also cause you to sell at a loss. Your business broker San Diego will help with business valuation. This is done to determine the actual value of your business. The broker will then use this information and with the prevailing market trends come up with the best selling price.
Develop comprehensive Information Memorandum
Another thing that a broker will do for you is to come up with the Information Memorandum. This is usually a 5 to 10 pages document that outlines your business’ potential for the buyers. This is usually the pitch. It has to be as enticing to the buyers as possible. Having sold many businesses before yours, the broker will be able to come up with the most comprehensive Information Memorandum for your business.
Conduct buyer research
Not every buyer that comes knocking is interested in buying your business. Some of them don’t even have the means to finance the project. One of the duties of business brokers San Diego is to conduct buyer research. The broker pre-screens buyers to ensure they are financially qualified to purchase your business. This is done before they are given any information about your company.
Prepare necessary papers
A lot of paperwork is involved in the sale of a business. It is the work of a broker to get this paperwork ready. The broker will help you with all necessary papers starting from the papers that describe your business to financial and tax documents. He will also help with the documents at closing.
The sale of a business you have setup from the ground up can arouse emotions. This is why you need to leave the negotiating part to the broker. The business broker is emotionally detached and will be able to handle the negotiations without any biasness.
There is a lot more that a business broker San Diego will do for you. Other crucial things the broker will do include maintaining confidentiality and let you leverage on his market knowledge. The only thing you have to do is to hire the broker who is experienced and with a good reputation.