Business Sales Administrator, Natalie Webb spoke to Steve Foreman, a Business Broker for Dale Wood, with over 20 years’ experience in the industry.
Steve gave an insight into the role of a business broker and how they assist their clients in the sale or purchase of a business.
A business broker is a trained, and as required by legislation in South Australia, licensed professional, who assists people to buy and sell businesses.
They will estimate the value of a business via an appraisal, advertise and conduct interviews with potential buyers with the view of selling the business.
A business brokers role has some similarities to the role of a real estate agent, only the broker is assisting in the purchase or sale of a business, which is a much more complex endeavour.
Brokers play a very valuable role in the process as they provide guidance, advice, and resources that sellers and purchasers may need to make the transaction happen.
They typically have years of training and experience in buying and selling businesses of all types and sizes, therefore they can provide expert guidance that can save their clients precious time and money.
Brokers are well connected with finance providers, accountants, lawyers, and other professionals including conveyancers, who may be needed to facilitate the sale.
For the Vendor (seller), business brokers can put together the marketing package, help determine the appropriate price for the business and complete all the necessary work to market the business for sale. Even before the business is placed on the market, they can provide very useful advice to properly prepare the business for sale. All these services that the broker performs, allows the business owner to stay focused on what they do best — running their business during the sales process.
For the Purchaser (buyer), a broker can present to them motivated sellers and opportunities that meet their particular skill set, passions, and financial objectives or goals. Brokers typically work on a commission basis – generally, the commission is discussed with the broker at the time an agency is signed – this commission is typically paid by the seller (as it is in real estate. At certain times, the broker works for the purchaser in a reverse role where they are given a brief to seek out a particular style or targeted business, the purchaser pays the fee in this circumstance.
If you are considering the sale of your business, or buying a business, please contact us for a confidential, no-obligation discussion and let us help you through this complex process on
(08) 8334 0600 or email firstname.lastname@example.org.