business broker law

Using the services of a business agent is similar to working with a real estate agent to sell a home. As with any real estate transaction, the seller pays the agent of the company. The broker can search for the right buyer while respecting the confidentiality of the company. You won’t get much benefit from publishing your business on a public website before selling, but an experienced broker will come with advice on how to market your companies and resources, including your personal network, which can help you reach the rights buyer quickly.

  1. An agency relationship or commercial property transaction involves a person who is both a buyer and a seller. The other parties to the transaction do not act like an agency or a relationship broker. A broker provides a commission-based brokerage relationship through a signed contract, and then the primary broker or his broker becomes the broker’s client. All you have is a broker and a customer.
  2. Brokerage services vary greatly depending on the practice and skills of the broker. Some states allow a broker and an agent to represent both sides of a transaction as double agents. A dual agency can arise when one or both agents in a brokerage have a listed business, and the broker in a brokerage has a buyer who wants to buy the registered business, which allows the agents to be referred to as intra-group agents. Selling price valuations, the techniques used by individual brokers, can vary significantly throughout the process.
  3. While some business owners may choose to dispense with a business broker to save on commission costs, it is essential to remember that the best business brokers will expertly maximize the value of your business. With a qualified broker, you can also avoid costly mistakes in the sales process. While the seller often incurs upfront costs and fees, the business and broker company receives a commission at the end of the transaction. Without adequate business intermediation, a seller will not be able to begin the initial consultation process without the required payment.

Bottom Line

The right broker can help a small business get the best possible price for a sale. A good broker helps small businesses find a source of potential buyers, navigate the legal, accounting, and other complexities of the deal, and work with a team of professional advisers. To find the right person for your sale, you need to do some research and familiarize yourself with the process.