We live in efficient times where everything can be served to us on a platter, even businesses. When buying or selling a business, we have our own set of apprehensions and expectations. Hence, it’s no easy task to zero down on what kind of business you desire, what industry, what price, and there are multiple derivatives affecting your decision. Considering the hassles faced and the growing expectations and concerns of buyers and sellers of businesses, business broking soon evolved as the best way to address such apparent concerns.
So who are business brokers and to what extent do they ease out the process of business buying and selling?
Business brokers assist in the process of business buying and selling extensively and cover all vital aspects of the process. Let’s understand a little more about business brokers and how they ease your business investment process.
All about Business Brokers
The importance of business brokers has increased significantly due to various regulations and compliances associated with buying and selling of businesses. Below are the vital details about business brokers:
Business brokers act as intermediaries between the intended buyer and seller of the business. Acting on behalf of the Vendor, they understand, analyse and narrow down the search and opportunities for business buyers. They act as a conduit and point of contact between business buyers and sellers to the point of satisfaction of both parties.
Being a business broker is no piece of cake, considering the negotiations, skilfulness and recurrent meetings that need to be held to come to a point of settlement. The major duties of a business broker are as follows:
- Evaluating a business
- Providing advice to sellers
- Finding potential buyers
- Structuring the sale, arriving at the type and form of payment agreeable to both the parties.
- Multiple negotiations and meetings until the final offer and agreeable price is reached
- Management of the process of due diligence
- Drafting of the necessary documentation
- Absolute assistance till deal closure
Arriving at a fair price
It is not an easy task to get a buyer and seller on the same page. There are a lot of negotiations, dealings and professional cajoling involved having both buyer and seller agree on terms and price.
Business brokers generally earn commission upon sale as a percentage. They typically charge upto 10% of the sale price of the business.
There are two main categories of business brokers, mostly focusing on the point of support they provide:
Seller side brokers- These brokers are engaged by the intended seller/owner of businesses.
Buyer side brokers- These brokers are engaged by a buyer to assist them in buying a business that is available on the market for sale.
Being a business broker is a rewarding, but challenging role. The challenges are multi-faceted. In the performance of their duties, they often face hurdles in the following areas:
- Maintenance of confidentiality while also openly marketing a business that is available for sale.
- Striking cordial terms and reaching common ground with advisors and buyers.
- Arriving at the fair and optimal price of the business is also not a very easy task.
- Buyers with intention and inadequate financing options also reach out to business brokers. In such cases, business brokers also need to have links with banking and other lending associations to support their buyers.
Paramount Business Brokers Melbourne
The one-stop-shop for Business Broking
Based in Melbourne, Victoria, Paramount Business Brokers are business broking experts who have created a formidable name for themselves in the industry. A business broking firm with high professional ethos and history of success, they offer a desirable platform and cater to the needs of business buyers and sellers.
The expert team at Paramount Business Brokers provide ‘obligation-free advice’ to their clients. The entire flow of business purchasing and selling is eased out and in professional hands. The display of professionalism, expert advisory and experience makes them the most sought after business broking firm in Melbourne.
To capitalise on the experience of the team at Paramount Business Brokers, visit their website at www.paramountbb.com.au and/or contact their office directly.