Business Broker Help
Buying or selling a business can be intimidating, especially for someone unfamiliar with the process itself as well as the available options. Enlisting the help of a good business broker can ease some of these tensions; a good business broker will be able to instruct buyers and sellers in the basics of business buying and selling and will be able to help clients choose the type of business transactions they want to conduct.
One classic type of business transaction is the asset purchase. This option is often appealing to the buyer because he or she can acquire the business assets of a seller without assuming the seller’s liabilities. An asset purchase allows a buyer to pick and choose which aspects of the business to buy and frees him or her of the obligation to maintain employees, practices, or even the bricks-and-mortar facility itself. Sellers can also choose which business assets to keep and which to sell.
Sellers often prefer the stock purchase as the buyer assumes all responsibility for the facilities and other business aspects. This type of business transaction allows the seller to avoid the double taxation that occurs after an asset purchase in which the business is taxed on sales proceeds and shareholders’ distributions. The stock purchase can be beneficial to everyone, however, as a buyer can begin running the business immediately since it already has premises, employees, and/or product to sell. Buyers should beware of the possibility of getting stuck with a seller’s liabilities, but a good business broker will help buyers know about that potential danger.
The last basic type of business transaction businessmen use to buy or sell businesses is the merger. Two businesses combine, although one is usually referred to as the “surviving corporation” while the other is the “disappearing corporation.” When handled properly, a merger is mutually beneficial to both parties and produces an end product that is a more successful business than either corporation had been before the merger. Combining two companies into one allows for the streamlining of facilities and employees, leading to decreased expenditures. As with any venture that involves two becoming one, there will be disagreements about how to handle certain situations at some point. A professional business broker can help both parties negotiate a compromise before the merger takes place.
Let a Business Broker Guide You through the Process
A change in ownership of a business does not have to be a stressful affair since a competent business broker can mitigate some of that stress by advertising the sale, imparting market knowledge, and negotiating a sound agreement with the other party. Click here on business broker and we will put together with a business broker in your area.