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    Business Broker

    Who is a Business Broker?

    A business broker is typically a firm that mediates in the sale and purchase of companies. It provides a helping hand to those who want to buy or sell their business. A business broker may have expertise in buying and selling companies within a particular industry, of a certain size, or those with a certain unique characteristic.

    Understanding a Business Broker

    The primary role of a business broker is to act as a mediator between the buyer and seller. A broker talks to the buyer and seller to wind up a productive negotiating discussion.

    Transferring a company's ownership includes a complex process where the fair price of the company must be determined, the accounts and financial records of the company must be verified, a price must be negotiated, and then the sale must be closed. Business brokers take up the responsibility of managing these activities along with ensuring the confidentiality of the sale details until an official announcement is made.

    How to Gauge a Business Broker?

    The right indicator of a business broker's efficiency is by checking their track record. One must have a close look at the percentage of businesses they have sold so far our of all the businesses they have tried to sell. Business brokers maintain a relationship with potential buyers as well as those businesses who are looking to sell.

    Business brokers receive commissions based on a percentage of the sale price they secure for the business, typically 10%-15%. Businesses who are looking to sell can locate with business brokers through accountants, professional associations, attorneys, and the International Business Brokers Association.

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