What Do I Do First To Sell My Arizona Business ?
“If I’m an Arizona business owner contemplating retiring and / or selling my business, what do I do first?”
I would ask your business CPA or Attorney, with whom you most likely have a strong and trusted relationship. Good choice. He or she may recommend someone. I hope they would also encourage you to do some research on the many brokers in the marketplace. I would research them just like I would when considering a vendor for my business. I also would not use my Accountant or Lawyer to find a buyer. I believe in specialization. ‘Let the accountants account, the lawyers lawyer, and the brokers broker.’ Your broker’s job is to find a lot of buyers at the best price.
From a legal and licensing point of view, Arizona business brokers are required to hold active Arizona Real Estate Licenses, and should have a specialty in business brokering. Commercial Real Estate is quite different from Residential and even more so from Business Brokering. Check with the Arizona Real Estate Department to confirm their Licensing.
In addition, maybe you want to take on a partner, sell a portion of the equity in your business, raise some equity capital or sell your business as a stock sale. Well, many of these options require that your business broker also have a security license.
You should check into this, for there are penalties for the broker AND the business seller when there are security violations. It is rare for business brokers to qualify, but we have actually earned licenses in securities, as Investment Bankers. Check with FINRA.org to see if your broker has a security license. They will also show violations, just like the Department Of Real Estate. That’s good to know in advance.
Now that you have a road map of how to approach the first step in considering which broker, the next blog will cover, a good approach to selecting an Arizona business broker:
First, get a Complementary Opinion Of Value from the broker. Get to know the broker and his/her professionalism and, at the same time, get an opinion of what your company may be worth in the marketplace.
Content Copyright 2018 – Gush And Associates – Arizona Business