What is a Broker?
A simple definition is that a Business Broker assist small businesses sell, purchase or merge the business. Most of the time, it is usually small business. However, brokers can handle large corporations with higher percentage.
How Business Broker make money?
Business Broker make money through commission based on overall percentage of the business deal is realized at.
Who can be a Business Broker?
Anyone can be a business broker who has a knowledge of local and national taxes. Usually, there is a team of brokers consisting of a broker and a tax lawyer.
Questions to ask Business Brokers
There are only simple questions to ask. However, when seller or buyer communicates more deeply, then other things shape up. Furthermore, there is no fix and hard rule. It’s a mix and match process.
- How much is the broker fee in percentage? Put it in an agreement.
- Years of experience?
- Are there any closed business deals?
- Is the broker authentic? Same goes for the seller and the buyer.
- What is your confidential process?
- How is a business broker appraising business financial value?
- Are you working alone as a broker or do you have sub-brokers?
- As a broker, are you working for the seller or the buyer?
- How are you qualified as a broker?
Why Hire a Business Broker?
A word of selling of your business in media and employees will raise eye browse and ears which could severely damage business credibility and reputation. It is broker’s job to mediate negotiations and safeguarding the idea of selling or purchasing until business owners are ready to reveal it.
Organized with Business Broker
Any selling or buying of a business requires documents. This is the time that business owners who need to sell; start gathering all documents. for example, business’s tax returns, food license, call center license, any medical laboratory license, hospital license, etc. Chaynuk.com knowing what documents are involved will be needed for potential buyers. This will ensure an organized and smooth process.
Potential Purchasers or Buyers
Potential purchasers will scrutinize the buying process. It is a commitment from the buyer who will either invest or complete buy the small business. It is a pain staking process. This is where broker help is needed. A broker is knowledgeable and usually has a team of several professionals. They can ask the right question to filter through the prospects.
Market and Exposure with Business Broker
Just posting of several ads is not enough to buy or sell business. It requires marketing strategy from marketing professionals. A business owner need fresh mind to have good ideas for marketing and exposure. Furthermore, specific target audience will be needing for market and exposure. A broker has a network or other brokers who can do market and exposure. A business owner can list their business on Chaynuk.com and and start market and exposure process.
Financial institutions, public and private banks work with business broker to assist qualified buyers with financing. A business broker has connections with several lending institutions, which help buyer finalize the deals.
Create a Plan
Buying or selling a business is a process. Business owners must communicate effectively in order to complete on time and in order. Letter of Intent (LoI) of closing or memorandum of understanding (MoU) to start or purchase a project or business can keep the process moving forward to finalization.
Site Sourcing and Site Selection
Chaynuk.com team takes time to learn about your business. There are site sourcing and selection tools that business owners can benefit in buying or selling their businesses.
Professional Fee outside the Deal
Yes, there are additional fee involved in business brokerage. A business broker can find out all the fee have it include in your expense.
- Business broker fee
- Lawyer fee
- Landlord fee
- Government permit fee
Entrance and Exit
A good business is done on good faith. It is a saying that any business owner who is interested in buying or selling a business must speak with their accountant for buying (enter) or selling (exit) a business. Chaynuk.com has a team of accountant and other professionals who have the experience in merger and acquisitions. If you are buying a business, then we can assist you in business plan. Please email at email@example.com or simply send us your query in contact page.
List of Occupations for Valuations
Basically, anyone who need to buy or sell; one has to gather information from all sources. Here are the lists of occupations where a seller or a buyer can discuss their business deals. Remember that more information about buying or selling will give you and business broker an educated guess. It is a good recommendation that to get things started towards understanding of the valuation is to identify four to five resources to value any business.
- Certified Valuations
- Business Advisers
- Real Estate Agents
- Business Brokers
- Online Listings
- Newspaper Listings
- Internet Listings
- M&A Specialists
- General Talk over BBQ Stand (Gather Information)
Suggested Articles on Business Broker
- Buy a Business
- Selling Business in Pakistan
- Buying Business in Pakistan
- Questions During Due Diligence
Chaynuk provides business broker services and listings. You can easily sell your any virtual or brick and mortar business; such as pan khoka, chai dhaba, any shop, clothing store, medical labs, xray labs, diagnostic labs, hospitals, and showroom businesses.
Easily register yourself with Chaynuk and add your listings. We will help you sell it. Please contact us.