BY VIC KHARADJIAN
Business Brokerage is an Industry that involves the Sale & Acquisition of small to medium size Businesses or Companies, both by Asset or Stock Sale. Some Business Brokerage Firms have the capability of doing Merger & Acquisitions as well. A professional Business Broker is an experienced business person, who specializes in helping business owners to sell businesses. They also help buyers to achieve their dreams of owning their own businesses. They are experts in keeping up with current market conditions and trends, pricing strategies, preparing marketing memorandums, and managing the selling process itself. Sellers must understand, however, that the marketplace will determine the final price, not the Business Broker.
Despite to the fact that a Real Estate License is required by law to become a Business Broker in the state of California, a successful Business Broker needs to have enough business related experience, education, and required knowledge/ability to read, understand, and recast Financial Statements. Certification in Business Brokerage is provided by CABB, California Association of Business Brokers, and IBBA, International Business Brokers Association. CABB provides designation of CBB (Certified Business Brokers). IBBA provides designation of CBI (Certified Business Intermediary). Earning either of these two certifications will differentiate a Business Broker from the rest. These certifications ensure that a broker has successfully completed an intense training, passed required exams, and closed specific amounts of business transactions. Currently, there are only 112 Certified Business Brokers (CBB) in California as of December 31, 2009.
How Does a Professional Business Broker Help?
Whether buying a business or selling one, going through such processes alone can be full of surprises and pitfalls. Here are just a few of the ways that a business broker professional can assist in the sale of a business:
- Help maximize the price a seller can receive for the business; Many times the secret is in the structuring of the price and terms
- Create and prepare a marketing strategy; The business broker professional knows the marketplace and can package a business properly
- Interview, educate and show the business to only qualified buyers.
- Keep the sellers informed of everything that happens regarding the sale of their businesses, and provide advice accordingly.
- Present all offers and point out the weaknesses and strengths of each one.
- Provide the names of other qualified advisors, if necessary, and any other resources that will be helpful during the selling process
- Help negotiate with landlords, lenders, attorneys, etc.
- Help close transactions as smoothly as possible – making sure all involved governmental agencies and escrow companies are on top of such transactions.
- Prepare Security Agreements and Promissory Notes for the seller if willing to carry a Note.
Vic Kharadjian, CBB, has been selling businesses with Business Team, Business Sales and Acquisition and known as Industry Expert by Business Brokerage Press. Vic is member of CABB and SCBBN. Vic is also experienced in Commercial Brokerage.
You may reach Vic Kharadjian at 818-571-5628 or via email [email protected]
Watch for the next month’s article from Vic Kharadjian about Asset vs. Stock Sale.