Buyer Business Broker – Job Description
Buyer Business Broker – Job Description
A Business Broker has a very specific and important role in the transfer process. It is very important to understand what this role is and what the business broker can do, how he can help.
A buyer who wants to buy a business will sign a Consulting Contract. This will be the base for all future collaboration between Business Broker and Buyer. The Business Broker will try to earn a success commission by finding business from the needed domain at a good price in the best condition for the Buyer. To make this happen, the Business Broker will take the following steps:
1) The Business Broker prepares the Buyer for the process of buying a business and contacting the potential Seller. He guides his client through the entire buy/sell process and also recommends solutions to improve it.
2) He offers the Buyer a survey for a better understanding of what he wants to buy and fills the needed forms and documents.
3) Based on the information from the Buyer, the Business Broker presents businesses ready to be sold in the teaser version (business summary) and helps to select them.
4) When needed or/and the Buyer requests it, the Business Broker will bring into the team the requested specialists like financial advisers, accountants, lawyers, real estate agents, people and business specialized in all consulting areas of expertise needed. The condition of collaboration and payment will be negotiated directly by the Buyer with those experts, helped by the Business Broker.
5) After the Buyer decides which presented business interest for him, the Business Broker will contact the Seller or its representative and request the full information package – Information Memorandum. Afterward, the Non-Disclosure Agreement will be signed for each information package received regarding a business that is for sale.
6) Based on the information from the Information Memorandum, the Business Broker and the Buyer will select the business that presents interest for a detailed analysis.
7) After selecting the Business, the Business Broker contacts the person which represents that Business to schedule a meeting. He is also assisting the Buyer in his relationship with the Seller and during the due – diligence process.
8) The Business Broker assists the Buyer during the negotiations of the Business price and transfer conditions. If the business has not been assessed by an ANEVAR expert, this can be done. The costs for this can be covered by Buyer or Seller only or it can be split between them. This will be specified in buy/sell the contract as a clause.
9) The business Broker assists the Buyer if requested, in the finance pre-qualification process with the Bank that could finance the buy of the Business. If this pre-qualification process is not possible any other financing option can be done.
10) The Business Broker helps the Buyer to create the Letter of Intent for a Business. Part of the clauses of the Buy/Sell Contract clauses will be specified here.
11) After the negotiation is over with an agreement, the Business Broker helps the Buyer to deposit to the Bank the financial guarantee needed to start the Due Dilligence and Transfer process.
12) The Business Broker helps the Buyer during the Business Transfer process that will take place through the Business Transfer Office until the final documents are signed and the Transfer is finished.
During this time the Buyer needs to get:
- List of payments to be made and other financial obligations;
- Authorizations, approvals and function permits
- List of Utility companies needed by the business to function;
- Transfer of employment contracts;
- Inventory of all psychical assets and raw materials;
- Transfer of the Lease Agreement or of the Real Estate Properties;
- Other information according to the business nature.
13) The Business Broker receives the success commissions mentioned in the contract.
In most cases buying an existing business is less risky than starting from zero. When you buy a business, you take over an already working operation that generates profit. There is already a client database, a reputation, and employee that have the know-how of the business. You do not have to re-invent the wheel by creating procedures, systems, and policies because there is an already successful methodology to run the Business and it has been tested.
TradeX Business Brokers are always ready for additional questions you have.