To our colleagues and friends, please have a safe and fruitful New Year! We at CBSN will be here in 2012 ready to help you in your business en devours and look forward to helping you start a new and exciting chapter in your life.
What is a Business Broker?A business broker is an intermediary between a buyer and a seller of a business. In most cases a business broker represents the seller in the sale of a business. It is the business brokers' responsibility to find qualified buyers for their clients.
A business broker is similar to a real estate agent who sells homes and earns a commission. But instead of selling homes, business brokers specialize in selling small and midsize companies -- everything from your local pizza parlor, dry cleaners and convenience store to larger companies, such as manufacturing and wholesale & distribution companies.
A business broker connects people who are looking to sell a business with people who are looking to buy a business, and helps them to complete the transaction. In most cases a business broker is involved from day one until the actual closing of the business. The business brokers' responsibility is to be an intermediary between the buyer, the seller, the landlords and the attorneys and make sure it is a smooth process.
Brokers supply numerous benefits to both buyers and sellers. For example, sellers benefit because they do not have to spend time and money searching for buyers. Qualified business brokers have access to people that are in the market to purchase a business, and they know how to attract and screen potential buyers much more quickly then do typical business owners. If you do not have the time to market selling your own business, it may be a good idea to sit down with a local business broker in your area to discuss representing you in the sale of your business.
About the Author
BusinessMart.com has become the fastest growing business for sale search engine, helping buyers and sellers of small businesses and franchises. BusinessMart.com has many resources to help you on your journey to start your own business, sell your existing business or open a franchise. BusinessMart.com has thousands ofbusinesses for sale in the US and Canada.
By: Alan Melton
If you are like most business owners, you would like to sell your business one day for top dollar. You need to know the value of your business in order to grow the value.
Businesses have "three values." The book value is typically determined by your accountant. The book value is your business equity; assets minus liabilities. Secondly the academic value is the method determined by a professional business valuation. This approach determines value with a formula based on your company's hard assets, cash flow, industry averages and multiples. The third method is what is referred to as the fair market value. The fair market value also takes those items into consideration, but then considers what buyers are really willing to pay.
For many small and mid-sized businesses hard assets such as equipment, vehicles, land, buildings, and inventory are limited. Some small businesses have no hard assets at all. In this case the business value is based on intangibles like employees, business processes, customer lists, location and business relationships.
If you want to maximize the fair market value of your business, it's critical that you leverage both tangible and intangible assets.
Finally, line up a team of key specialists who will help you get the highest value and the most protection when you sell. Hire a good exit planner, attorney, accountant, and a business intermediary to name a few. You only have one chance to sell your business; do it right!
Colorado Business Sales Network is dedicated to improving and pursuing excellence in the area of business sales.