Business brokers are the agents to contact when you are interested in buying or selling a restaurant, retail store, service business, manufacturing plant or any other kind of company. There are many issues that must be addressed when businesses change hands.
The financial statements from previous years need to be evaluated. Outstanding debts and accounts receivable should be considered. A broker working for a potential buyer will help to insure that there are no judgments or liens that could affect the new owner.
There are specific points that must be investigated in different industries. Safety inspections, health department reports, recent fines, conflicts, suits in progress, etc.
Real estate is almost always a part of the business’s assets. So, in addition to the considerations that are applicable only to businesses, the relevant real estate laws must be adhered to. In many states including Georgia a real estate license is required for Business Brokers.
It might all sound complicated, but an experienced broker can make the whole transaction go smoothly. Buyers and sellers agree that choosing the right broker makes all of the difference.
Since there are many business brokers to choose from in major cities and metropolitan areas, you might be wondering what factors to consider when you are making a selection. Experience is the first thing to consider.
A broker might work with a firm at first in order to get the necessary experience. When a person decides that this is the career they wish to pursue, they should be willing to take the required courses and pass the required licensing exams. While some states do not require licensing, the better business brokers in all states are licensed.
Once you have established that the broker you are considering is experienced, qualified and licensed, you might ask about experience relevant to your industry. Technically, a broker can sell all kinds of businesses. But things go a little smoother if he or she is familiar with the industry you are in or hope to be in.
Some brokers may charge hourly fees for screening customers or creating a memorandum to assist in selling a company. This hourly fee is in addition to commissions made once the sell is completed.
It is always a good idea to talk to the agent about the total fees charged before you sign a contract. That way, you will be prepared when you receive the bill.
Most business brokers charge reasonable fees and most of their customers are satisfied with the results.