Who is a Business Broker?
Business Brokers or Business Transfer Agents act as middlemen between the buyers and sellers of privately held businesses. In layman’s term, a broker is responsible for estimating the value of a business, advertising it for sale, handling the initial potential buyer interviews, discussions and negotiations with prospective buyers, and much more.
Relationship of Top Business Brokers with Clients and Customers
Generally, experienced brokers provide a commission based service under a signed agreement with the seller or through a representative agreement with a buyer. In most states of the United States of America (USA), there is a common law which creates an agency relationship with fiduciary obligations.
In transactions of business ownership, broker agency relationships include representation by an executive (on behalf of the agency) of the selling principal, whether that person is a buyer or seller. The principal broker then becomes the agent(s) of the principal, who is the broker’s client. The other party, who doesn’t have a relationship with the business broker, is the customer of the broker.
Business brokers also act as transaction brokers in some U.S states. A transaction broker doesn’t represent any party as an agent but has the responsibility for facilitating the transaction and deals with both parties on the same level of trust.
Types of services offered
Services vary depending upon the practice and skill set of the broker. Common services include:
- Conduct buyer searches.
- Marketing the business to prospective buyers
- Conduct negotiations and provide deal structuring advice.
- Help in maintaining the confidentiality of the sale.
- Providing overall deal management to guide the client through the entire process.
One of the biggest advantages working with a business broker is the ability to allow owners of a business to stay focused on running their business during the selling stage, which can take an average of 6 to 12 months to complete.
Our experts at Evolution V Advisory have a vast experience If as business brokers in Michigan and primarily in Detroit. We believe in providing satisfactory services to our clients and making sure that they get a great deal out of the buying or selling process.
In case, you are looking for a local business for sale in Detroit or anywhere in Michigan, check out our website. We have a list of businesses that are open for sales discussion.
Selling a business?
contact us today and we can help you with the entire process. We understand that selling a business can be a challenging task and sometimes getting a satisfactory deal becomes impossible but don’t worry, it is our responsibility to take care of that part.