When conducting transactions between a seller and a buyer, there can be from 2 parties, up to 3-4 companies. The simplest variant is a transaction independently organized between the seller and the buyer. However, today such transactions are very rare. In most cases, the work is done with the help of reliable business brokers. 

Their contribution to such transactions can hardly be overestimated. However, not all investors understand why they need to contact them. Before entrusting a broker to sell my business it is necessary to study his duties and understand why it is profitable to cooperate with brokers https://www.valleybiggs.com/ to do this, you need to understand how such businesses function. 

Who are business brokers

Business brokers are intermediaries who help to buy and sell a company. Most often business broker services offered for small businesses with a turnover of less than a million dollars. This intermediary can represent both buyer and seller at the same time. There are also situations when each party has its business broker.

The main objective of such a company is to successfully finalize the transaction. For this, they receive their commission and continue to work. It is a large group of experienced experts who help the buyer find the right firm to buy, and the sellers to sell their assets and get funds for their needs. For either side of the transaction, the help of a business broker will be invaluable. 

Role of business broker in company purchase and sale transactions

Analyzing a business broker role in transactions, you can understand that his task is to organize the very process of buying and selling a legal entity. For their services, they charge a commission of 8-12% of the sale price. Their help in this procedure is difficult to overestimate because the intermediary:

  • will find a buyer without creating unnecessary information noise;
  • will allow the business owner to focus on its active development;
  • knows what documents need to be examined;
  • will select the best deal for the seller;
  • provide legal advice.

Such a package of services is not easy to obtain. It can take months to organize such work on your own. But this means stopping the work of departments and sending analysts, lawyers, and sales departments to organize all the processes. It is much cheaper to organize the process of selling a business with broker.

Responsibilities of a business broker

When the question of the value of a broker arises, you need to understand that he does not just bring the client together with the seller. His duties also include:

  • business valuation for brokered deals;
  • determining the fair value of a business;
  • confidential search for buyers;
  • vetting buyers;
  • organizing meetings with the client;
  • structuring the transaction;
  • execution of the necessary documentation;
  • legal support for the buyer and seller.

These are just the basic responsibilities of a broker. However, reliable brokers are also paid for their experience and qualifications. An experienced broker already has a base of buyers and sellers. Accordingly, going to him with his inquiries the client can immediately receive offers to buy. 

Brokers also analyze the company's activities, potential, and assets. This is all aimed at forming the correct value. Informing about the real value of assets allows us to understand for what price it is realistic to sell the company. Accordingly, the seller will not fall below the market and will be able to earn more money on the deal. 

Registration of all documents is also a complicated and long process. Only with the help of a broker, there is no need to deal with additional paperwork and preparation of documentation. All this can be entrusted to a reliable intermediary. All that remains is to find such a company. 

Where to find a reliable business broker

Today, finding qualified buyers for businesses goes faster. Many companies are well-known in the market and have a positive reputation. Valley Biggs stands out among them. This is a team of experienced professionals who have closed more than one deal on the sale and purchase of businesses.

The company's employees understand what to pay attention to in a transaction, and can quickly conduct a quality business valuation and determine its value. By choosing to work with Valley Biggs buyers and sellers will find a reliable partner who will help buy a potentially profitable business and help win a larger market share for their clients at affordable prices. All that remains is to contact our managers.