The Business Buying Process
Once you have identified what businesses are available and might be right for you then the serious work begins.
Under the Real Estate Agents Act 2008, Bayleys agents are required to appraise a business for sale prior to entering into an agency agreement to sell it. An appraisal is different from a valuation but uses similar methodologies. In preparing an appraisal, a business broker will use various approaches and methods to establish a value for the business and often the range at which offers are likely to be received. A range is relevant because every business buyer has a different motivation. A potential purchaser’s assessment of the value of a business will be based on how they intend to use it.
This appraisal will then be discussed with the business owner to gain agreement on the value of the business and the possible range within which the business may sell. While the appraisal is confidential between the agent and the seller, it does mean that all businesses listed with Bayleys have gone through a rigorous assessment and appraisal process. Rest assured, Bayleys’ experienced business brokers will not be wasting theirs or your time with vendors who have unrealistic expectations re their business’ worth.
Achieving a successful outcome in your search for a business will be helped by an understanding of the sales process and in particular:
How an agency agreement works
Methods of sale
Information can you expect to receive and confidentiality agreements
Concluding the sale