You don't have to go through the business buying process alone.
Transworld Business Advisors will advocate for you during the process with our buy side representation program.
When engaged in a business acquisition transaction with a business seller or a seller's broker, it is best to seek Buy Side Representation to protect your interests, manage transaction steps and improve your overall business purchase outcome. Transworld Business Advisors' Colorado business brokers can help individuals, partnerships, and investment firms to buy a business in the Rocky Mountain Region who are already engaged in the process of buying a company with a seller or their broker.
Whether you're buying a business to accumulate wealth, build your investment assets, or to buy a job - whether you're a first time business buyer or an experienced business owner, an acquisition can present hurdles and challenges. Finding a trusted advisor to manage the process and act as your exclusive buyer representative is a no brainer to keep deal flow moving toward the closing table.
Our job is to help you close on your business with confidence.
Ready to engage a buyer representative in Denver? Contact Us.
Learn what supporting small business acquisitions means to our President.
What's the Difference between a Seller's Agent, a Transactional Advisor, and a Buyer's Agent?
The following describes the role of each type of business advisor in relation to the client they're serving in the business sale/acquisition transaction. It is common practice in business brokerage as well as commercial real estate to provide clients with a document outlining the Definition of Working Relationships to ensure a client understands their specific purpose within a transaction. The following definitions come from the Colorado Real Estate Commission as of January 2020.
- 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
- Closing
- 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 a seller 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 schedule a consultation to receive information pertinent to your Denver business.
