What's the difference between a Seller's Agent, a Transactional Advisor, and a Buyers Agents?
- A Seller’s Agent (or listing agent) represents the business seller. The agent negotiates on behalf of and acts as an advocate for the seller.
- A Transactional Advisor or transaction broker assists the buyer or seller or both throughout a business brokerage transaction.
- A Buyer’s Agent or buyer representative works solely on behalf of the buyer to promote the interests of the buyer with the utmost good faith, loyalty and fidelity. The agent negotiates on behalf of and acts as an advocate for the buyer.
Why Engage a Buyer Representative when a Broker is already involved?
In a business sale transaction it is typical that the business broker working the transaction is a seller's agent or a transaction broker, and neither of these brokers solely represent the buyer in the transaction. This can create a confusing transaction, where a buyer is unsure what broker to turn to for guidance. A buyer's agent is the sole representative of a buyer in a business sale transaction, allowing the buyer to rest assured they're receiving the best advice for their interests.
What Services Does a Buyer's Representative Provide?
When aligning yourself with a Business Broker to represent you at the negotiation table in a business acquisition transaction, you can expect they will provide the following services in support of your interest as the business buyer.
· Consulting and deal guidance
· Executing a confidentiality agreement
· Reviewing the offer and business's financials
· Reviewing the pricing strategy
· Executing a Letter of Intent (LOI)
· Offer negotiations with the seller's broker
· Executing the due diligence process
· Lease, legal and financing strategies
· Deal structuring
· Closing preparations
· Training and transition support
When Does a Buyer Agent get Involved in the Transaction Process?
The buy side representation program is for buyer clients who are engaged with a seller’s broker from an outside firm or are engaged with sellers representing themself in a sale transaction.
Buy Side Business Broker Fees?
Just like a transactional or listing broker, a buyer representative earns a commission upon deal close. Commissions are based on the size of the small business and may include a retainer upfront, which will be credited to the deal after close. These fees are agreed upon in advance of the service provision, so clients are never surprised. To better understand the pricing structure associated with working with a business broker, we invite you to Contact Us to receive information pertinent to your business.