10 things to expect from your business intermediary

<h1>10 things to expect from your business intermediary</h1><strong>Author: <a title="Andrew Rogerson" href="http://www.articlesbase.com/authors/andrew-rogerson/154794.htm">Andrew Rogerson</a></strong><br /><p>Buying or selling a business is complex task as there are so many moving parts.  The moving parts obviously include the buyer and seller but may also include lenders, landlord, franchisors, attorneys, accountants, customers, suppliers, competitors, employees and others.  Just as you can get help from a residential real estate to buy or sell a house, there are also business brokers or intermediaries who provide the services of an intermediary.  If you are looking for the help of an intermediary or business broker, consider the following.</p> <h2>1.  Trust and Ethics. </h2> <p>When selling your business you want to feel assured the intermediary has a strong commitment to trust and ethics so you know your business and its interests are fully protected.  Getting an ethical and trust commitment from your business broker is the most important ingredient.  It is critical and should be non-negotiable.</p> <h2>2.  Real Estate License. </h2> <p>Many states in the US require a business broker to hold a real estate license in order to represent an owner of property in a sale and be paid for providing that service.  In California, a license is issued by the California Department of Real Estate for two types of persons; a Broker and a Sales Agent.  A Broker can either work for themselves or choose to hire Sales Agents that work under the Broker.</p> <h2>3.  Specialization. </h2> <p>Does the Business intermediary you are considering hiring specialize in either residential sales, business opportunities, commercial real estate, mortgages or finance  or a combination of these?  Because of the complexities and differences of each markets, most Brokers or Sales Agents tend to specialize in one area.  Even within these broad specializations there are specialists.  For example, in business opportunities, if a transaction is greater than $5,000,000 there are there are Broker/Sales Agents that specialize in this market called M&A intermediaries.</p> <h2>4. Experience</h2> <p>Has the Business Intermediary owned and operated a business?  Business ownership teaches many skills and requires a unique understanding of what is involved in owning and operating a business.  When detailed negotiations take place between the business owner and a potential buyer, all the options must be explored, fully considered and understood.</p> <h2>5.  Accreditations. </h2> <p>Does the have formal training or education to support the service they provide?  There are different types of accreditations with some including the Certified Business Intermediary (CBI) from the International Business Brokers Association and the Certified Business Broker (CBB) from the California Association of Business Brokers.</p> <h2>6.  Association memberships. </h2> <p>Accreditations are good, staying up with the accreditations is better.  To see if a Business Intermediary is a member of their industry association, check the International Business Brokers Association (IBBA) at <a href="http://www.ibba.org/"><a target="_blank" href="http://www.ibba.org">http://www.ibba.org</a></a> or search the web for “Business Broker Organization” in the state where you live.</p> <h2>7.  Communicates and explains clearly </h2> <p>Selling or buying a business requires dealing in financial, legal, industry and other forms of jargon.  Are you able to communicate easily and clearly with your Business Intermediary and understand what they are talking about?</p> <h2>8.  Network of professionals. </h2> <p>Selling a business often brings together different professionals such as Accountants, Attorneys, Property Management Companies, Landlords, Escrow officers, Appraisers, Tax Agents, Lenders, Franchisors and Financial Planners.   Does your Business Intermediary have professionals he can introduce you to if your business requires that expertise?</p> <h2>9.  Testimonials. </h2> <p>What do the past customers have to say about the services of the Broker/Sales Agent?</p> <h2>10.  Finance. </h2> <p>Most sellers do not wish to carry any finance or they wish to carry as little finance as possible.  Is your  able to introduce you to finance professionals who would finance the deal for a qualified buyer?</p> <p>Buying or selling any item of value must be done properly so the value of the asset is protected.  Using the services of a professional intermediary to guide you through the process and protecting your investment is good business.</p><strong>About the Author:</strong><br /><p>Andrew is a 5-time business owner that loves helping entrepreneurs exit or enter business ownership.  His services include business brokerage; helping owners sell and/or buyers purchase a business.  He also provides consulting on purchasing a franchise, certified machinery and equipment appraisals and business valuations.  Andrew is a CBI with the International Business Brokers Association and CBB with the California Association of Business Brokers.  He also carries a Brokers License from the California Dept. of Real Estate, is a member of the Sacramento Metro Chamber of Commerce and the Sacramento Chair of the California Association of Business Brokers.</p><p>Article Source: <a href="http://www.articlesbase.com/">ArticlesBase.com</a> - <a href="http://www.articlesbase.com/entrepreneurship-articles/10-things-to-expect-from-your-business-intermediary-1298901.html" title="10 things to expect from your business intermediary">10 things to expect from your business intermediary</a></p>

Buying or selling a business is complex task as there are so many moving parts. The moving parts obviously include the buyer and seller but may also include lenders, landlord, franchisors, attorneys, accountants, customers, suppliers, competitors, employees and others. Just as you can get help from a residential real estate to buy or sell a house, there are also business brokers or intermediaries who provide the services of an intermediary. If you are looking for the help of an intermediary or business broker, consider the following.

1. Trust and Ethics.

When selling your business you want to feel assured the intermediary has a strong commitment to trust and ethics so you know your business and its interests are fully protected. Getting an ethical and trust commitment from your business broker is the most important ingredient. It is critical and should be non-negotiable.

2. Real Estate License.

Many states in the US require a business broker to hold a real estate license in order to represent an owner of property in a sale and be paid for providing that service. In California, a license is issued by the California Department of Real Estate for two types of persons; a Broker and a Sales Agent. A Broker can either work for themselves or choose to hire Sales Agents that work under the Broker.

3. Specialization.

Does the Business intermediary you are considering hiring specialize in either residential sales, business opportunities, commercial real estate, mortgages or finance or a combination of these? Because of the complexities and differences of each markets, most Brokers or Sales Agents tend to specialize in one area. Even within these broad specializations there are specialists. For example, in business opportunities, if a transaction is greater than $5,000,000 there are there are Broker/Sales Agents that specialize in this market called M&A intermediaries.

4. Experience

Has the Business Intermediary owned and operated a business? Business ownership teaches many skills and requires a unique understanding of what is involved in owning and operating a business. When detailed negotiations take place between the business owner and a potential buyer, all the options must be explored, fully considered and understood.

5. Accreditations.

Does the have formal training or education to support the service they provide? There are different types of accreditations with some including the Certified Business Intermediary (CBI) from the International Business Brokers Association and the Certified Business Broker (CBB) from the California Association of Business Brokers.

6. Association memberships.

Accreditations are good, staying up with the accreditations is better. To see if a Business Intermediary is a member of their industry association, check the International Business Brokers Association (IBBA) at http://www.ibba.org or search the web for “Business Broker Organization” in the state where you live.

7. Communicates and explains clearly

Selling or buying a business requires dealing in financial, legal, industry and other forms of jargon. Are you able to communicate easily and clearly with your Business Intermediary and understand what they are talking about?

8. Network of professionals.

Selling a business often brings together different professionals such as Accountants, Attorneys, Property Management Companies, Landlords, Escrow officers, Appraisers, Tax Agents, Lenders, Franchisors and Financial Planners. Does your Business Intermediary have professionals he can introduce you to if your business requires that expertise?

9. Testimonials.

What do the past customers have to say about the services of the Broker/Sales Agent?

10. Finance.

Most sellers do not wish to carry any finance or they wish to carry as little finance as possible. Is your able to introduce you to finance professionals who would finance the deal for a qualified buyer?

Buying or selling any item of value must be done properly so the value of the asset is protected. Using the services of a professional intermediary to guide you through the process and protecting your investment is good business.

Andrew is a 5-time business owner that loves helping entrepreneurs exit or enter business ownership. His services include business brokerage; helping owners sell and/or buyers purchase a business. He also provides consulting on purchasing a franchise, certified machinery and equipment appraisals and business valuations. Andrew is a CBI with the International Business Brokers Association and CBB with the California Association of Business Brokers. He also carries a Brokers License from the California Dept. of Real Estate, is a member of the Sacramento Metro Chamber of Commerce and the Sacramento Chair of the California Association of Business Brokers.

Rate this Article:

0 / 5 stars - 0 vote(s)

Re-Publish

Article Source: http://www.articlesbase.com/entrepreneurship-articles/10-things-to-expect-from-your-business-intermediary-1298901.html

Article Tags: andrew rogerson, sacramento business broker, sell a business, buy a business, business intermediary, help selling a business

Related Videos
Related Articles
Ask / Related Q&A

Play

What Happens if No One Wants to Buy or Sell a Stock

Play

How you can Sell a Home

Play

Learn how to Sell a Home in a Short Sale

Play

How to Start a Craft Supply Business

Play

How to Sell Crafts Made from Designs you Get Online

Latest Entrepreneurship Articles
More from Andrew Rogerson

Report on Analysis and Forecast of China Live hog, Layers and Broilers

By: Bharat Book Bureau | 23/12/2009
Bharatbook.com added a new report on "Report on Analysis and Forecast of China Live hog, Layers and Broilers (2009-2010)" which gives broiler market developments and change characteristics in 2009.

FAQ on Singapore Company Formation

By: Paul Media | 23/12/2009
FAQ Guide on how to register a company in Singapore for local residents and foreign individuals and companies

FAQ on Singapore Company Formation

By: Paul Media | 23/12/2009
FAQ Guide on how to register a company in Singapore for local residents and foreign individuals and companies

Make Money From Home! In 2010 YOU Can Be Self Employed! Become An Entrepreneur!

By: Father Time | 22/12/2009
If you would like to make money from home, maybe the time has come for you to do so!

Entrepreneur With X Factor

By: Zurieka Model | 22/12/2009
When you think of an entrepreneur what do you think of? According to Wikipedia it’s described as, “An entrepreneur is a person who has possession of an enterprise, or venture, and assumes significant accountability for the inherent risks and the outcome. It is an ambitious leader who combines land, labor, and capital to often create and market new goods or services”. Do you think of yourself as an entrepreneur or as an employee?

How do you reach Prospective purchaser?

By: David Pin | 22/12/2009
You may seek to obtain an offer by word of mouth, contacting people known to you, usually within your industry and enquiring whether they might be interested in buying the business. Whilst you may be able to directly contact some interested parties within your industry with a high level of credibility quite quickly using this method, it does have the dangers of limiting the pool of prospective interested parties to those you know, without exploring the potential of sales to financial institution

Key Questions to Ask a Franchisor BEFORE you Buy a Franchise

By: Joerg Sieber | 22/12/2009
Buying a Franchise is for most a life changing decision. This article lists a few questions, most franchisees tent to forget to ask and many franchisors tend to gloss over. Don't forget to ask these questions before signing on the dotted line.

Top Ten 2010 Trends for Entrepreneurs

By: Kenneth Kaufman | 21/12/2009
With 2009 coming to a close, we look ahead to what we can expect and should plan for in 2010. Here is my list of the top ten trends founders, CEOs, and entrepreneurs of start-up, emerging, and medium-sized businesses should consider as they prepare for the new year.

Why Dr Jekyll would not be a good business buyer

By: Andrew Rogerson | 19/12/2009 | Entrepreneurship
We’re all familiar with the story about Dr. Jekyll and Mr. Hyde; the person with two completely different personalities. Just as there are different types of buyers with different motivations, there are also buyers with different types of personalities.

Why entrepreneurs adjust their thinking when business failure is not an option

By: Andrew Rogerson | 04/12/2009 | Entrepreneurship
A true entrepreneur only sees opportunities and the chance to make a lot of money. In a down economy they see it as the time to build greater knowledge, strength and resources to be ready for the inevitable upturn in the economy. However, we if we are not wired like the true entrepreneur we need to remind ourselves of what it takes to keep going and get to the next level.

6 questions to answer bluntly to find out if your business is in a crisis

By: Andrew Rogerson | 30/11/2009 | Entrepreneurship
Is owning and operating your business in this current economic climate getting you down? Not sure what your next steps should be? Not sure if you have options? The first thing is to know where you and your business currently stand; which is the purpose of this article. Once you know that answer, dust off your business plan, refresh it and review your next steps from an informed position.

5 traits of a successful entrepreneur

By: Andrew Rogerson | 14/11/2009 | Entrepreneurship
Entrepreneurs come in all shapes and sizes including diverse social, economic and education backgrounds. There is no “guaranteed” path to being a successful entrepreneur but this article suggests there are five traits they generally have in common.

The Power of Seller Finance to sell your business

By: Andrew Rogerson | 08/11/2009 | Ask an Expert
Selling a business comes with many challenges. The number one reason most transactions don’t close after a buyer and seller have “negotiated” a deal is that the landlord cannot come to terms with the seller and/or buyer. The number two reason is that finance is not available.

Importance of a business valuation when selling your business

By: Andrew Rogerson | 01/11/2009 | Ask an Expert
A great starting point if you are seriously considering selling your business is getting a valuation. Depending on the business valuation, your next steps may be getting advice from your accountant on how much you keep and how much will go in taxes so you know you truly wish to sell. But this article is about the importance of a business valuation prior to trying to sell your business.

Importance of a business valuation when selling your business

Buying or selling the Perfect Business

By: Andrew Rogerson | 16/10/2009 | Ask an Expert
Buying or selling a business comes with many variables. The seller brings their perspective of knowing the business “like the back of his hand” as they are responsible for growing and maintaining the business. The buyers bring new enthusiasm and ideas with a mixture of trepidation and excitement. Finding the right business is generally a major challenge. If a seller and buyer can come together with as many of these items aligned, they have a much greater chance of success.