

Types of services that a broker can provide
Broker services vary widely depending on the practice and skill set
of the broker.
The most common services provided by a broker to a client are:
• Assist client in establishing a MPSP Value - Most Probable Selling
Price
Valuation; the techniques used by individual brokers can vary greatly
in this process
• Develop an Information Memorandum on the company;
normally a 15-30 page document outlining the business for potential
buyers
• Conduct buyer searches
• Exposure - Marketing the business to prospective buyers
• Screen buyers for ability to complete a purchase
• Coordinate negotiations and provide deal structuring advice
• Provide overall deal management to guide the client through
the entire process
• Help maintain confidentiality of the sale
• Hourly Consulting for a fee, based on the client's needs
Perhaps one of the biggest services provided by brokers
is the ability to allow owners to stay focused on running their business
during the sale process which can be take on average 6 months to 12
months to complete.
Licensing of business brokers
According to an IBBA convention Seminar in 2000,
at least 13 states required Business Brokers to have a Real Estate license.
The following require a license to practice as a business broker:
Arkansas, California, Colorado, Florida, Georgia, Idaho,
Illinois,
Michigan, Minnesota, Nebraska, Nevada, Oregon, South Dakota, Utah, Wisconsin,
and Wyoming.
Make sure you use a business broker in Licensed by the
Real Estate Commission in Georgia or you will not be protected!
There are UNLICENSED brokers selling restaurants in Atlanta. Ask to
see a Real Estate License!
Services provided to seller as client
Upon signing a listing contract with the seller wishing
to sell the business, the brokerage attempts to earn a commission
by finding a buyer for the sellers' business for highest possible price
on the best terms for the seller.
To help accomplish this goal of finding buyers,
a business brokerage commonly does the following:
• Ensures Confidentiality--Brokers have established systems in
place to protect the confidentiality of a business.
• Appraisals--Most business owners have no idea what their business
is worth.
Certified Business Brokers are trained in business valuation and can
help business owners
understand the true value of all their hard work and sacrifice.
• Market Knowledge--Brokers make their living selling businesses.
They are in the market on a daily basis conversing with Buyers.
A local business broker understands the local market as well as what
a business is worth.
• Saves time and stress
• Listing the business for sale to the public, often on a Multiple
Listing Service,
in addition to any other methods.
• Based on the law in several states, providing the seller with
a business condition disclosure form,
and other forms which may be needed.
• Preparing necessary papers describing the business for advertising,
pamphlets, tours, etc.
• Advertising the business. Advertising is often the biggest outside
expense in listing a business.
• Being a contact person available to answer any questions about
the business
and to schedule showing appointments
• Ensuring buyers are prescreened so that they are financially
qualified
to buy the business; the more highly financially qualified the buyer
is,
the more likely the closing will succeed.
• Negotiating price on behalf of the sellers.
The seller's agent acts as a fiduciary for the seller.
By not being emotionally tied to the transaction,
Business Brokers are in a position
to more effectively negotiate on a Seller's behalf.
This may involve preparing a standard offer to purchase
contract by filling in the blanks in the contract form.
• In some cases, holding an earnest payment in escrow from the
buyer(s)
until the closing. In many states, the closing is the meeting between
the buyer and seller
where the business ownership is transferred and the businesses name
is conveyed.
Business brokers attract prospective buyers in a variety of ways,
including listing limited details of available businesses on their websites
and advertising in business newspapers and magazines.
Brokers also directly approach prospective buyers and sellers to gauge
interest.
Restaurant
Exchange LLC dba Atlanta Restaurant Exchange
A Real Estate Brokerage registered
and Licensed in the state of Georgia
Georgia Restaurant Association