0333 3440 778 - info@hhcbs.co.uk
 

<< Return to business news page

Why are some business transfer agents referred to as using a factory model?

Some larger firms use a volume based factory model where your business could be one of 15000 or more businesses waiting to be sold and therefore these organisations do not and can’t provide an advice led and relationship based service. It begs the question how many of these businesses will actually be sold?

Their processes are about placing advertising and to cover this they charge a large sign up fee as well as a success fee.

Unfortunately this is not the worst of it, in many cases owners trying to sell their business find that not only have they paid a large fee for advertising but they are tied into onerous terms and conditions when they try to cancel the arrangements.

It is our opinion that you should never agree to give away a percentage of your business sale price in exchange for advertising services we believe that this is simply not good value for money.

By way of comparison Hyde House provides a personal service where your business will be one of only six businesses handled at anyone time. A true relationship and personal service.

Our terms and conditions are honest and transparent  and are kept to the bare minimum.

An example of our terms of business

How much should a business broker cost? What is a typical sign up or commitment fee? 

You should not need to pay more than £5k to sign up with any broker.  The whole point is that they should be rewarded on success based fees for completing the sale of your business.

Therefore paying too much up front will cushion the broker against failing to sale your business.

Hyde House does not rely on up front fees.

Success fees vary depending on the value of the transaction.

As a rough guide you should expect to pay 3% for the first £1m of a transaction.

 

Request a confidential call back




 
Copyright © 2012 All Rights Reserved. | sitemap | privacy policy