December 15th, 2010 When an individual or various business entity is considering buying another company, it is important to remain level-headed, fair and respectful. That being said, everyone involved is still trying to get the best deal possible from the transaction, and good deals do not always line up when competing interests are at stake.
In order to maintain civility and a level of interest across all parties, it may be helpful to hire a business broker to manage the negotiations. Although a broker is not a necessary investment, some sort of acquisition “team” is advisable so that the primary proprietor can receive input from various perspectives.
“Most brokers are hired by sellers to find buyers and help negotiate deals,” writes Entrepreneur magazine. “If you hire a broker, he or she will charge you a commission – typically 5 to 10 percent of the purchase price. The assistance brokers can offer, especially for first-time buyers, is often worth the cost.”
“However, if you are really trying to save money, consider hiring a broker only when you are near the final negotiating phase,” the magazine continues. “Brokers can offer assistance in several ways.”
Whatever the chosen strategy for acquiring a business, be sure to consider the interests of the buyer, the seller and even the broker. Sometimes, simply placing oneself in an other’s shoes can help participants see a potential deal for what it really is.http://www.bizilla.com/blog/
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Reading this kind of post makes me so happy.
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