What Are Business Broker Agreements?

A Business FAQ with Mark A. Williams.

A business broker agreement usually means that you have hired someone to sell your business for you. So you sign an agreement with them that will say, “I want to sell it for this amount of money and I’m going to give you a period of time to go try to sell it, and if you do sell it, then I have to pay you a commission.” You would hire a business broker just like you would hire someone to sell your house; it is very similar, but in those agreements, you really have to be careful to specify exactly what you are selling and exactly what are you paying a commission on.

© 2014 Parsonage Vandenack Williams LLC

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Should I Sell My Business to an Employee or Heir?


That is certainly a difficult question because you probably have an emotional attachment to these people and would like to sell it, but you, first of all, have to establish whether or not they are capable of running the business. The second most important aspect, if you care about the business and the people, is making sure that the staff that is there will continue in your absence. Frequently when you sell to an employee or to an heir you find out that you can’t, perhaps, charge the full amount for the business that you think it would bring from others. There are ways to do it with employees through ESOPs and through redemption agreements that can ease the pain of the cost of taking over the business.

© 2014 Parsonage Vandenack Williams LLC

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I’m Ready to Retire, How Do I Get Value Out of My Business?

What you want to consider when you are getting ready to retire, with respect to your business, is who your potential buyers are. Getting the right buyer is going to get you the most value out of your business, so consider whether you are looking for a third-party buyer, whether you have a child in the business who might take over, whether there are employees who might take on the business, or whether your business is one of the types that you simply maximize the income for as long as you can and then throw the keys out when you are done.

© 2014 Parsonage Vandenack Williams LLC

For more information, Contact Us