Derek Burgoyne, Cornerstone Business Agents
"There are many business brokers and the levels of service available vary from merely listing businesses on various websites to offering advice at every stage of the sale.
"A professional business broker should, in my opinion:
- Provide a realistic valuation based on comparisons and trading figures
- Give advice on how the value of the business could be increased
- Suggest ways in which the business could be better presented to appeal to buyers
- Create interesting, distinctive sales particulars that avoid clichés and over-the-top descriptions, because they'll leave the potential buyer disappointed when he views the property
- List the business on the leading business-for-sale websites and have their own easy to find and easy to operate website
- Advertise the business in appropriate publications
- Have an extensive list of buyers to whom the business can be matched and details sent
- Be capable of understanding and analysing the business's accounts and presenting them in their best possible light to potential buyers
- Speak to viewers before and after a visit to the business and give their client constructive feedback
- Be a good negotiator when agreeing a purchase price with the buyer
- Have access to commercial funding facilities for buyers
- Give his/her client regular feedback on progress (or lack of it)
- Be able to provide clear information on the basic legal requirements surrounding the purchase and sale of a business
- Return phone calls within 24 hours
- Revisit a business if it has not been sold in six months
- Ensure that the broker who carries out the valuation oversees the sale to completion and is always available to his/her client
Shaun Sweeney, Turner Butler
"You must be prepared to give your right arm to your client. If you're not in the business of taking care of your clients then you shouldn't be in this business – they've entrusted us to sell their family business after all.
"Between 9am and 6pm every call is answered within three rings at Turner Butler. In fact, we believe that strong client support can make or break the success of a sale.
"No matter whether a seller wants an open or a confidential sale, the broker should protect his client's business confidentiality.
"We handhold clients all the way through their business sale. Of course, some sellers don't want handholding because they're business people – they're competent and know what they're doing.
"Others want to speak to you three or four times a day. You've got to provide a service at the level your client wants."
Rupert Cattell, Amberglobe
"Firstly, knowledge and experience of the sector, regular updates, an active marketing policy and coverage on all business-for-sale websites."
"A good business transfer agent should be in a position to:
- Value the business and property
- Draw up a prospectus
- Advertise your business nationally and locally as appropriate
- Handle enquiries and assess their quality
- Send full details
- Arrange appointments to view
- Brief you on the prospective buyer
- Follow-up after the visit to establish the level of interest and provide further information where required
- Maintain regular contact right through to completion of the sale
- Assist the purchaser with finance (if required)
- Ensure that all the accounts relating to the business are up-to-date
- Ensure that copies of the terms of your lease are available
- Ensure that your business is presented in its most favourable light
- If stock valuation is going to be necessary, it may simplify matters if you do your own stock-take first to give yourself a value to compare against the stock valuer's assessment
David Rhodes, Horizon Business Agents
"I'd expect calls to be returned within 24 hours, and brokers to contact the vendor on a regular basis to give them status reports.
"But obviously it works both ways. Sometimes the vendor isn't really serious about selling the business.
"If they contact me regularly then I know they're serious, but I have people on my books that never contact me at all, it's all one-way communication. You would expect two-way communication."
Norman Younger, Kensington Business Brokers
"Calls should always be answered during office hours. There should always be someone there to deal with you and they should be getting back to you within 24 hours – as an absolute minimum.
"Once the seller agreement is signed we’ll give them the mobile number of the agent dealing with their case in case they have an issue or concern out of office hours that is reasonably pressing."
Don Glossop, Andon Frères
"Selling a business is one of the most important decisions an owner will take and it's vital that he capitalises on the opportunity. There are different service providers in the market, including business transfer agents, brokers and corporate finance firms attached to accountancy firms, all offering different levels of service, and the vendor needs to decide what level of service he wants.
"Small businesses tend to use business transfer agents that handle high volumes of companies and generally provide a marketing service, whereas companies in the SME (small to medium enterprise) and mid-corporate market tend to appoint brokers who are more advice/service-orientated.
"Andon Frères for example is a firm of brokers that serves the SME and mid-corporate markets. We work more closely with a smaller number of clients and provide a personal service with high level of commitment.
"We confidentially but proactively market a company and go looking for buyers. We manage the process from concept through to completion of the sale.
"The vendor needs to decide what level of support and advice he needs but it's important to get professionally qualified, good quality assistance at the outset – it's too late after the business is sold, it can't be undone!"
