Finding Business Brokers in Calgary
Some people sell their businesses on their own but most business owners prefer to focus on their businesses and let someone else take care of the process. Depending on the size of your operation, you may choose a business broker in Calgary or a mergers and acquisitions intermediary.
Many sellers make the mistake of using an unqualified business broker. In Alberta, the sale of businesses is not regulated and anyone can act as your broker. Selling a business is far more complicated than selling a house or commercial property and requires thorough knowledge and a different skill set. It is very important to evaluate the the business brokers in Calgary, and choose someone with experience and knowledge with whom you are comfortable working.
Do your homework before making a selection. Some questions you might want to ask include:
- What do you know about my industry?
- How do you find buyers?
- How do you qualify buyers?
- Can I see a sample offering memorandum or selling package?
- How many Calgary businesses have you sold in the last year?
- How much time do you typically invest in marketing a business?
- What valuation method will you use to set a selling price?
- How will you keep this process confidential?
- What are your fees?
- Can you provide me with references?
What to Expect from Business Brokers in Calgary
Once you have chosen an intermediary to work with, you will sign a listing agreement or engagement letter to sell your business. You will then have to provide all necessary information about your business to your representative so that he or she can prepare a marketing package and begin looking for the right buyer. The amount of information you provide, and the speed at which you provide it, will play a role in determining how long it takes to sell your business.
You will usually get to preview buyers (on paper) before information about your business is shown to them. When a buyer makes an offer through a Letter of Intent or Offer to Purchase, you can decide whether or not you want to work with that particular buyer. If you do, you will enter into negotiations and the buyer will perform due diligence before the sale closes.