FAQ
We have attempted to address various questions you may have related to buying or selling a business. Please contact us directly if you have additional questions.
Is it better to hire a Broker or Brokerage Firm?
We feel you should be seeking an intermediary that understands your objectives and has your best interest at heart. This process must be based on mutual trust and respect. Brokerage-Plus has developed this trust with numerous attorneys, bankers, accountants and investment managers. My resources are selected and relationships maintained based on their exceptional knowledge, expertise and willingness to partner with Brokerage-Plus throughout the transaction.
How important is a Broker's professional background and level of experience?
Extremely important. We offer over 20 years of diverse financial experience. As our client, you will be personally serviced by the owners and benefit from this knowledge. We choose not to hire entry level brokers that often times do not have the broad and diverse level of experience that clients require in a successful business transition.
How successful is Brokerage-Plus compared with competitors?
Nearly all of our clients come to us as referrals from satisfied clients.
Does Brokerage-Plus only focus on one specific industry?
No. We focus on high quality firms regardless of their specific industry. Our areas of specialty include manufacturing, distribution and service industries.
I have a specific Buyer I would like to approach. Is that OK?
Brokerage-Plus may be asked to occasionally approach a specific buyer in an effort to maintain a business owner’s confidentiality.
Why use a Broker?
A business transition is a complex transaction and must be approached with a deliberate process and handled in a professional manner. With Brokerage-Plus, we will help control and lead this process. Our years of professional experience allow us the depth of resources to confidentially yet aggressively market your business to potential buyers/investors. Prior to the release of any of your company information, prospective buyers will be required to sign a non-disclosure agreement. Brokerage-Plus, LLC will help to facilitate arrangements with attorneys, bankers and accountants, in order to finalize your transaction, with minimal interference to the operation of your business.
I am already talking with a Buyer. Now what?
Unlike your attorney, Brokerage-Plus can openly speak with any party to the transaction. This capability is typically used to send messages and obtain feedback that is otherwise not available. In addition, Brokerage-Plus can propose solutions and obtain feedback from the other side without compromising the client’s ultimate position on an issue.
What if I have already selected a successor for my business?
A select group of business owners may have already been identified and/or selected a successor. Brokerage-Plus is effective in acting as an independent third party to help broker the transaction objectively.
Other Brokerage firms boast they only handle a few clients at one time. Is this a good thing?
We have had a very high level of quality and success while accommodating multiple clients per broker. Only 5 clients are under contract at any point in time with Brokerage Plus. Each client receives personalized service from the owner which allows them the benefit of our significant level of experience.
Are there advantages to working with a large Brokerage Firm?
We believe there are significant detriments to working with large brokerage firms. These detriments have directly resulted on our decision to maintain a smaller operation. A broker from a larger firm may choose not share key information with other brokers in an attempt to avoid a personal reduction or sharing of a potential commission. Sharing information is the key to a successful transaction.
How important is the reputation of brokerage firm?
Company image and reputation is important. However when you sell your business, no one should be aware that a brokerage firm was ever involved – even after the sale. At Brokerage-Plus we understand and respect the confidentiality of the sale and the terms of the sale. While selling a business may be a great opportunity to promote the success of a brokerage firm, this may not be good exposure for the new owner. This publicity may ultimately damage the on-going business for the new owner. At Brokerage-Plus we are concerned with successful business transitions for both the Buyer and the Seller.
A large firm owner says he will personally handle my sale. Is this recommended?
In my experience, we have seen owners or “rainmakers” of larger brokerage firms present impressive initial meetings with Sellers and then after the Listing Agreement is secured, the Seller may be ultimately passed on to a less experience broker. Analyze the firm’s website carefully. Ask the tough questions. Personally meet the individual who will handle your sale. Do you feel confident with this person? Impressive initial meetings won’t sell your business.
Should I give an up front fee to a Brokerage-Firm?
No. We believe a broker should be paid only upon a successful transition. There should be no strings attached to any potential fees or costs.
Some Brokers charge such large commissions. Why?
High cost Brokers will try to convince you that their contact database and guidance will enable them to get a sales price that is up to 20% higher than what your business may really be worth. This increased value will supposedly more than pay for a massive commission. We believe this is a false reality. A knowledgeable broker will work with a firm’s accountants and other professionals in order to maximize business value. Call Brokerage-Plus and learn more about your business’ true value and how to maximize the timing and net cash flow, post-sale.
Is my client information shown to banks in order to help establish value?
No. Some brokerage firms will show preliminary financial information to bankers in order to determine how much the bank would be willing to extend for financing. This is not a process that determines value. This information only tells you what a bank may or may not be willing to do in terms of financing options for a potential buyer. Since the bank is obtaining knowledge of a possible sale before a Buyer has been identified, this approach may compromise confidentiality of the sale.
Some Brokers maintain that they are the only ones that can get you in front of specific buyers. Is this accurate?
This may be, however we would strongly caution you when you hear these types of remarks. Why would a large firm only work exclusively through a specific broker? You may ultimately forgo a significantly higher sales price. This situation may benefit the Buyer and result in a quick, easy sale for the Broker, at the potential sacrifice of owner's business value.
What is the first thing I need to do as a Business Seller or Buyer?
Give us a call or email us. We will be happy to meet with you to discuss your business options and outline a process appropriate to the confidential transition of your business.
Buy a Business | Sell a Business | Client Services | Get Email Alerts
Contact | FAQ | Recent Sales | Resources | Home
Copyright © 2008 Brokerage-Plus LLC. All rights reserved.
Website designed by Nsite Designs LLC