Operational Strategy

The  Business  Strategy  and  Process  that  we  follow, 

consists  of  the  following  Steps :

1.    The Seller Contacts one of our Brokers / Agents

Generally speaking, Business Brokers operate in the same way as Real Estate Agents do, in that they work on a Commission Only Basis, receiving payment only on the Successful Conclusion of the Sale of a Business. Our Work and Results are therefore in actual fact GUARANTEED !  

NO Sale, NO Money for the Seller and then also NO Payment for us !

The Business Broker is normally contracted by the Seller and therefore in effect “ works ” primarily for the Seller as the Client, but always with due regard to the Buyer's Interests. The Seller will therefore be responsible for payment of the Broker’s Commission as agreed upon in writing and the Broker’s Mandate is to find the Seller a Willing and Able Buyer for the Seller's Business at an agreed Selling Price.

We only work on Mandates that we receive directly from the Business Owner to ensure that we are duly authorised to sell the Business.

 

2.    We draw up a Mandate outlining the Conditions of the Sale
There are no two Mandates that will ever be the same. The mere fact that we operate in the Medium to Small Business Sector means that for each Business, however similar they might be, the Owner's own personal circumstances will influence what he is prepared to offer for sale or not. A typical Next Level Mandate will outline most of the of questions needed to be asked by a Prospective Buyer. We draw up our Mandates in conjunction with the Seller and always assist with advice on how to better structure a deal to achieve a Market Related Selling Price. It is crucial for us to be able to obtain all the relevant and accurate Business Information from the Seller, right from the start.
 
3.   Our Broker Discreetly Markets the Business
Sadly when it comes to the Selling of a Business, there is generally the perception that if it is for Sale, then something must be wrong. The fact however is that many Owner decisions to sell the Business is not at all a reflection of the Business's Profitability or not. However, it is of the utmost importance to treat the details of the Business for Sale as Strictly Confidential. If for instance an Anchor Supplier of the Business does not approve of the Business being in the Market ( for any particular reason ), the Business Owner might end up losing his Account with that important Supplier, which could be detrimental to the future existence of the Business. The same will apply to Staff, the Business Clients and even the Business's Bankers.
 
4.    Potential Buyers get Screened
The Advertising of a Business is totally different from the Marketing of a Property. A Broker will not attend to all Enquiries, but will screen the Buyers to ensure that he only introduces to the Seller, Buyers who are WILLING and ABLE. A Next Level Business Broker will not produce any further detail to a Potential Buyer who has not signed a Non-Disclosure Agreement with a fair indication of his ability to buy the Business. However much as we as Brokers would like to help everybody, our service to our Sellers includes the screening of all Potential Buyers. Only once we are satisfied with the Quality of the Potential Buyer, will he/ she be afforded further detailed information.
 
5.    Negotiate the Sale
This is certainly where the Professional Business Broker can be most effective in communicating back and forth between the parties until each point of concern has been cleared up to total satisfaction. The ability of a Broker to understand the Client's needs and to structure a deal is the determining factor in concluding a Successful Transaction. Years of experience and a Network of Colleagues and Associates is the vital ingredient that a Professional Broker will be able to bring to the table.
 
As a Buyer, you need to be certain of the outcome you desire and make sure that you do not commit yourself to a Transaction where you are not able to deliver and do not have the Finances to proceed with the Transaction.
 
As a Seller, you should always also keep your Personal Involvement in the Business after Hand Over in mind as most Buyers will require some sort of Hand Over Period.
 
6.    Hand Over the Business and Agreed Take Over Period
Once a deal has been negotiated, it would be reduced to writing in a Sales Agreement / Memorandum of Agreement. This document will stipulate all the Terms and Conditions and the Obligations and Liabilities for both parties.
 
For the Seller, it is important to only hand over “ the keys ” of the Business after receipt of the Initial Deposit.
 
For the Buyer, it is a good idea to have a Buyer’s Check List available to plan all the things that he/she needs to do in order to accommodate the smooth Takeover of the Business.

The crucial and professional role of the Business Broker, in concluding a Win-Win Deal for both the parties may also mean that, the Buyer and Seller will most likely also establish a good and open Working Relationship in the process, even if they may have had serious disagreements during the course of the Negotiating Phase.
 
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