Seller Business Broker – Job Description
Seller Business Broker – Job Description
When signing the listing contract with the Seller who wants to sell his business, the Business Broker is trying to win a commission by finding a Buyer for the business, at the best price and in the requested conditions. To make this possible, the Business Broker takes the following actions:
1) Signs a Representations Contract with the Seller that must include the following:
- The information of all involved parts;
- The obligations of all involved parts;
- Start and end date of the collaboration of the potential exclusivity clause;
- Non-Disclosure Agreement;
- Business Broker commission;
The commission represents the compensation the Business Broker will receive after he finds a Buyer accepted by the Seller. It is followed by a Business Sale Contract signed by of all involved parties. The commissions are negotiated between Seller and Broker. The commission can be a fix amount or a combination between a fix amount and a percentage pay, especially in the case of small business or multi-million businesses or other special assests. The details are included on the Contract between Seller and Business Broker.
2) He prepares the Business and the Seller for the selling process and the contract with the potential buyer. He also guides his client through the entire selling process and make recommendations to improve it.
3) He prepares the needed documents for the Business sale. He offers the Seller a presentation questionnaire and other business evaluation surveys needed.
4) Based on the information provided by the Seller, he creates the Information Memorandum that includes the details about the company that is usually a 15-30 pages document that presents the business to potential Buyers.
- Creates the document with the general financial information
- Prepares the Annexes of the Business Sale Contract with:
a) Authorizations, approvals and function permits;
b) List of payments to be made and other financial obligations;
c) List of Utilities companies needed by the business to function;
d) Employee list with roles and wages;
e) Inventory of all psychical assets and raw materials;
f) Real Estate Properties and/or Lease Contracts;
g) Other information according to the business nature.
5) When needed and the Seller approves it, the Business Broker will bring to the team the specialists: financial advisers, accountants, lawyers, real estate agents, evaluators, businesses and people specialized in all consulting domains needed.
6) Evaluates the price of the Business. Most business owners do not know exactly the value of their business as the evaluation is pretty complicated. The Business Broker can help the Seller understand the value of the business on the market and can even contact the services of an ANEVAR specialist. The services of the specialist will be paid directly by the Seller.
7) Assists the Seller, if he wishes, in the process of pre-qualifying of the Business to a possible financing of a potential Buyer with a Bank. This will increase the marketability of the Business by finding a Buyer easier.
8) From the extended version Information Memorandum (IM), he creates the short version – Teaser – which will be published in order to find a potential Buyer. Prepares presentation materials of the proposed Business for sale
9) List the business on Sell or Buy a Business sites and provides other ways to promote it. Updates the data base and the selling online platform any time needed.
10) Prospects the market to identify potential customers. He ensure that they are financially ready to buy the Business. He is the contact person available to answer any questions about the company.
11) When a Buyer wants more information about the business, he schedules the Buyer to sign the Non-Disclosure Agreement in order to receive the Information Memorandum (IM) package.
12) Schedules the business presentation meetings. Assists the Seller and its team, in presenting the business and in the relation with the potential Buyers.
13) Presents to the Seller the buyers and their offers and helps select the best offer.
14) After selecting the Buyer, the Business Broker assists the Seller (and its team) in their contact and during the due-diligence process. He also assists the Seller during the price and condition negotiations.
15) After negotiating an agreement between the 2 parts, he assists the Seller during the Business Transfer through the Escrow Agency until the final documents are signed and the transfer is final.
16) Receives the success commission according to the Contract signed with the Seller.
The best service offered by the Business Broker is the capacity to allow the Business Owner to concentrate on his business during the selling process that can take 4 to 12 months to be finalized.
TradeX Business Brokers are always ready to answer to any additional question you have!