Whether buying or selling a business, using a brokerage firm can make the process go by quicker, easier, and without a high level of stress. Fees and charges are usually paid by the seller, but there may be some fees for the buyer as well in preparation for making an offer. Brokers can be paid by the hour, on retainer, or on commission. There are sometimes when a combination of fees are charged, depending on the service provided. If a business owner wants to know the value of the business for future reference, for example, rather than for listing the business, an hourly fee might be charged. If a buyer needs help gathering financial statements, determining which industry would be the best fit, or wants information regarding the timing of the market, a retainer fee may be established. Once a business is listed, the charge may be on commission. Just be sure to be clear about charges and fees before hiring a firm.
Experienced brokerage firms, such as Sun Acquisitions have a full team of professionals that can help with the sale or purchase of a business across industries. Small, medium, and large markets are represented with strict confidentiality, utilizing diverse marketing tools and a database of opportunities. Any broker assigned to a client will be a Certified Business Intermediary (CBI), and have experience representing similar businesses. Free consultations are offered to buyers and sellers to establish goals. A consultation for buyers will include a disclosure of the entire process, a review of specific acquisition criteria and a review of potential opportunities from currently listed options. Industry sectors will be discussed, and introductions to other resources, such as lawyers and accountants will be made.
A consultation for sellers at Sun Acquisitions will include a review of goals, business performance, and potential deal structures and desired outcomes. An understanding of industry trends, as well as advice on marketing timing will also be presented. The broker will provide benchmarks for similar businesses that were represented by the firm. Having an entire team of professionals helping with the process is one of the many benefits of choosing a firm rather than an independent broker. Sellers will need to maintain the value of the business, so leaving brokers to do the rest is a smart choice.