How Can A Business Broker Help Business People To Purchase Or Sell A Business?

How Can A Business Broker Help Business People To Purchase Or Sell A Business?

Published : 2010-07-13

When you want to buy or sell a business, it's advisable to make use of the services of someone that is highly familiar with the steps that need to be taken. A business broker is such a professional that assists both buyers and sellers during the process of buying or selling a business.

Generally speaking you do not find young college graduates in the business broking field. This is because they don't have the level of knowledge and skills required to do this job well. Often you will find that a business broker is a retired banker, accountant or business owner. Not only do these guys know how to look for a successful business, they are familiar with the interpretation of financial statements and they know all the tricks of the trade to best advise both sellers and buyers.

If you are the seller of an existing business, a broker will sell it for you on a commission basis. That means if they're not able to make a sale, you don't pay anything. They will advertise it in all the major newspapers as well as on the Internet. They will deal with all enquiries and meet with prospective buyers.

Only if a buyer turns up that is seriously interested in the business will you need to get involved. In this case the broker will arrange a meeting between you and the buyer. Be prepared for in-depth questions to be asked during such an initial session. Don't discuss confidential business information with the buyer at this stage - wait until he makes a formal offer which you find acceptable.

Using the services of a broker also makes a lot of sense to a buyer. The brokers always have large numbers of businesses for sale at any moment in time. They also have the financial statements for all these businesses available for serious buyers to scrutinize. If you have any additional questions, they will be able to answer them. Once you've studied the financial statements and you're still interested to buy the business, the brokers will arrange a meeting between the owners and you. At this stage you can ask all your remaining questions.

Should you eventually proceed to make an offer for the business, you are free to make the offer subject to certain criteria being fulfilled. A sales contract can even be drawn up, subject to the criteria you have stipulated. Examples of such clauses are that your accountant should be able to verify the correctness of the financial statements and that he should also be able to satisfy himself as to the correctness of the stocks and assets lists.

It therefore makes a lot of sense for both buyers and sellers to make use of a business broker. They have the experience and skills to assist both sides during a sales transaction.

About the Author :

A business broker is a specialized type of expert familiar with the ins and outs of marketing a business. Make sure you choose a top rated New Jersey business broker for selling your business.

By : Dan Davie