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Isn’t a business broker just a glorified salesman? – Article by 1SELL

While there are similarities between a business broker and a salesperson, the roles are distinct and serve different purposes within the realm of selling a business.

A business broker specializes in facilitating the sale or purchase of businesses. Whist they are generally contracted by the vendor of a business, they typically work with both buyers and vendors to navigate the complexities of the transaction process. Their responsibilities often include:

Appraisal: Determining the fair market value of the business based on various factors such as financial performance, market trends, and industry standards.

Marketing: Creating marketing materials and strategies to attract potential buyers or investors. This normally involves advertising the business for sale, identifying suitable prospects, and maintaining confidentiality throughout the process.

Negotiation: Facilitating negotiations between the buyer and seller to reach mutually beneficial terms regarding the sale price, payment structure, contingencies, and other key aspects of the deal.

Due Diligence: Assisting both parties in conducting thorough due diligence to verify the financial, legal, and operational aspects of the business before finalizing the transaction.

Documentation: Overseeing the preparation and execution of legal documents, contracts, and agreements required for the sale or purchase of the business.

On the other hand, a salesperson typically focuses on selling products or services on behalf of a company. While they may engage in negotiations and customer interactions, their primary goal is to generate sales revenue for their employer.

It’s important to note that while a business broker engages in selling businesses, their role is more comprehensive and involves specialized knowledge of business appraisals, financial analysis, historical sales analysis, market trends and legal considerations related to mergers and acquisitions. This distinguishes them from traditional salespeople and emphasizes their role as facilitators in complex business transactions.

Tasks a business broker does or gets involved in.

·       Appraisal or Valuation.

·       Collating documents required to list & present a business.

·       Listing the business including supervising copywriting, photos, floor plans, video, 3-D tours, drone imaging and more.

·       Supervising development of a professional Information Memorandum.

·       Fielding buyer enquiries after a confidentiality agreement is signed.

·       Assessing buyer suitability to the business.

·       Assisting with buyer-vendor negotiations.

·       Drafting a Term Sheet or Heads of Agreement.

·       Assisting with procurement of finance.

·       Advising on structure of the sale. IS an asset or share sale more appropriate?

·       Supervising due diligence / trial whilst minimising business disruption.

·       Coordinating Contract of Sale with respective lawyers.

·       Assisting with transfer of lease and stocktake.

·       Ensuring staff are correctly transferred to buyer’s entity.

·       Ensuring handover training package is well structured for buyer needs.

·       and much more…

Nadish Naoroji

Mobile: +61 412 936 836

E-mail:  nadish@1sell.au

Himanshu Shah

Mobile: +61 403 017 344

E-mail:  h.shah@1sell.au

 

 
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