The process of selling a business is typically much different than selling a house or other type of real property. The differences are quite deep and it takes a thorough understanding of the nuances of selling businesses to be successful at it. That being said, many people are still unaware of the differences between a business broker compared to a real estate agent. This article will explore some of those differences.
Unique skill-set required to sell a business
If you wish to sell a business then dealing with a professional that has the skill to do so is the best course of action to take. Successful business brokers must be knowledgeable about how to value a business. This requires a level of acumen in valuation principles, financial statement analysis, taxation implications, inventory and goodwill issues, and so on.
Real estate valuation is a different process altogether. There is usually good comparable market data available whereas with small private businesses, there is not.
Multiple Representation
Most business brokers in Canada work under the banner of multiple representation. This means that they represent the buyer and the seller in the transaction. This is done for a number of reasons, the most common being that since selling a business is so specialized a field that a qualified business broker has better success at consummating a deal if he or she worked both ends of it.
Marketing a business for sale
To successfully sell a company, it requires a robust network of potential buyers and influencers such as accountants, lawyers, wealth managers, bankers and others to draw from. Often, it takes the fullest effort possible on behalf of a business intermediary in order to put a deal together. Because of this, usually professionals that are specialized in the field of business brokerage are best equipped to market and find buyers for a small business for sale.
Business brokerage not geographic-centric
The field of real estate is often specialized by professionals who specialize in a specific territory or geographic location. For instance, a good real estate agent may know a town or neighbourhood quite well. Conversely, in the field of business brokerage, a business broker may specialize in a price range or industry such as manufacturing or distribution and not be confined necessarily to a tight geography in which to operate in.
The process of selling a company usually does require the services of a business intermediary that is specialized in the field and the profession is remarkably quite different than the process of selling real estate.
If you are looking at buying or selling a business in Toronto in Ontario, Canada there are some issues that business brokers Toronto may be able to assist you with.
Article Source: http://EzineArticles.com/?expert=A._Brown
The role of a business broker is very important for buy or sale business. In fact, there are many people move to business broker and real estate business agent from their other business because of increasing demand of these two businesses.
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