0333 3440 778 - info@hhcbs.co.uk
 
corporate-business-broker.jpg

Don't pay excessively large up front fees

Not all Business Brokers are the same.

Some operate a basic advertising model and do not expend much effort for you in terms of finding a buyer through other more proactive means. Others specialise in smaller businesses or extremely large businesses.

Clearly therefore you will need to know how to differentiate the various broker types out there. Here are some tips as to what to avoid if you are faced with statements, claims or requirements such as these:

You need to pay a large fee upfront!

Most brokers will want some form of fee up front but this should in normal circumstances be sufficient to cover basic expenses and show your commitment to the process only. It should not be substantial as the main earnings of a broker should be from a successful sale.

Any broker that front ends its fees is really showing a lack of confidence in being able to complete the sale of your business.

Is my business really worth that much!?!

If you react with surprise or shock at the high valuation placed on your business then be on your guard. If you think a valuation is too good to be true seek a second opinion - request a free valuation here.

Some brokers will deliberately over value your business in the hope that you will appoint them over other brokers providing a more realistic indication of value. Failing to meet these value aspirations is likely to cause conflict and ultimately disappointment when you are unable to attract a buyer or secure an offer in the region of the original valuation.

We have thousands of businesses for sale!

Do you want to be one among thousands of clients?

If a broker’s model concentrates on signing up as many clients as possible, including much smaller businesses than your own, it maybe that you will be left disappointed with the level of service you actually receive.

We have thousands of buyers for your business!

Some brokers may claim that there are literally thousands of suitable buyers for your business and that their process is to approach all of them. Then gradually whittle down the numbers leaving a selection of competing buyers bidding for your business.

It is most unlikely that there are hundreds of buyers for your business let alone thousands. A scatter-gun approach such as this, despite protestations to the contrary, is not scientific, does not bring results quickly and creates false expectations that many buyers may bid for your business. In some cases trying to engineer an auction will actually deter potential buyers from making an offer at all.

Beware of exclusivity

It is right and proper that the broker should expect exclusivity. But it is not right that they should expect it regardless of performance or for unreasonably long periods of time.

Check carefully how the broker is going to report progress to you and make it clear on what grounds you would want to walk away from the agreement.

Just sign here!

Do not be pressured into signing any agreement or letter of appointment in your office with the broker present. Be highly suspicious of the intent of the agreement if its length exceeds more than a page or two.

Fundamentally the job specification is simple. I appoint you to sell my business and I will pay you an initial fee of £X and a success fee on completion of contracts of X%.

 

Pay Hyde House for results

Much more than an advertising service

Hyde House specialises in selling medium sized businesses (£1m-20m turnover).

We manage the entire process, finding the right buyers, managing negotiations and providing expert advice and guidance to secure the best offers and drive the deal through to completion. 

Success based fees

  • Our fees are extremely competitive and are based on a successful completion.
     
  • We ask for only a small commitment fee to engage our services.
     
  • We will agree a percentage of the final sale value during a free consultation and valuation.

Realistic valuations

We believe in managing business owners expectations and as such we will provide an honest and realistic assessment of the potential value of your business.

With our help you will be able to see your business from a buyers perspective and identify aspects of your business that you can improve upon to help increase your final sale price.

We only work with a small number of clients

We dedicate our resources to a small number of clients in order to ensure each one receives the highest quality of service and expertise required to successfully complete a sale.

Our business model is entirely dependant on successful business sales not a high volume of client engagements.

We can introduce you to the right buyers for your business

  • Actively seeking out buyers
    Through research and confidential marketing activities.
  • Discreet confidential approaches
    To potential buyers on a no names basis.
  • Network of potential buyers
    Nurtured through successful transactions, this peer-to-peer network produces fantastic results.

No blanket exclusivity agreements or hidden fees and charges

We only ask for exclusivity when you have accepted an offer we have generated.

Our terms of business are limited to a single side of A4 and contain absolutely no hidden fees or charges.

To see an example of our standard terms of business please click here.

Read more about our M&A advisory services

Read more about our business sale services, or arrange a free consultation and valuation.

Request a meeting at a location of your choosing.

Call to discuss or meet us for a coffee - 0333 3440 778 - info@hhcbs.co.uk

All enquiries are treated with the strictest confidentiality and your details will never be shared with any third party or used for marketing activities such as mailing or telemarketing lists.

 
Copyright © 2012 All Rights Reserved. | sitemap | privacy policy | Find us on Google+