Why a Business Broker – what do they do?

Buying a Business Exit Strategy - Selling a Business 

Most people don’t know what a business broker does.  In fact, it is said 9 out of 10 people have no idea why the role of a business broker is so important in the successful transfer of a business from one owner to another.  So how does having a business broker help in the sale of your business? business tranactions

1- Confidentiality protects the seller from their customers, suppliers, employees and others from finding out their business is for sale until it has been sold.  The potential buyers sign a non-disclosure agreement before knowing the name or location of the business.

2-Help provide a fair market value.   Based on their experience from previous sales and knowledge of the market helps determine the highest purchase price possible.

3-Have experience in handling complex issues in the sales process and anticipating them before they arise.

4-Can help remove some of the the stress and emotional challenges in the sale of the business.

5-The business owner can continue running their business while the business broker handles the marketing and inquiries for the business transaction.

6-Prepare a professional marketing package to attract the best possible and qualified buyers.

7-Screen out the time wasters and unqualified buyers who will not be able to get financing..

8-Act as a referral source to other professional advisers used in the sales process, such as attorneys, accountants, lenders and others when needed.

9-Prepare all offers to purchase on proper legal forms without needing expensive legal staff to draw up the offer terms and conditions.

10-Assist in due diligence process in making sure the buyer is informed on all the financial aspects of he business.

11- Keep the process moving forward by coordinating the landlord assignment of the lease and other details before the closing.

12- At the completion of the sale, business broker’s get their ‘success fee’ for their efforts in getting the deal done.

If you are thinking of selling you business, contact our office by phone or email and one of our agents can help.

Purchasing a Franchise: Pros and Cons

Buying a Business 

Are you looking to buy a business? Have you considered purchasing a franchise? At Lakes Business Group, we have been able to get an up-close view of the pros and cons of franchise ownership. Some franchises are easy to work with and some have a lot of hoops to jump through and unexpected costs. Here’s what we’ve learned:

PROS:  

  • Guidance and support of the franchisor
  • Access to a recognized name/corporate level advertising
  • Ability to obtain better employees because of recognized name
  • Recipes/formulas for success have already been developed and outlined
  • Training programs already developed for new employees

CONS:

  • Strict guidelines
  • Limited products and services allowed
  • Franchise fees/hidden fees
  • Risk of franchisor or other business owners ruining the company’s reputation

Before entering into a franchise agreement, it is vital to have an understanding of the Franchise Disclosure Document (FDD) and heavily research the company you are buying into.

Our team at Lakes Business Group can help direct you in buying the right business for you.