The first stage of the individual who wants to buy or sell a company in the market is essential. In-depth information on the meaning of the market, product knowledge, the level of risk it is capable of assuming, etc. is essential. A prudent buyer or seller must analyze all these aspects and know where it goes, before jumping on the market. The decision to buy or sell a company is a great commitment that can lead a person to immense wealth or can bring enormous problems.
The buyer or seller of the company should consider such important aspects as: do I carry out the transaction on my own or do I follow the opinion of the experts? Through whom? These questions have a simple answer; the business broker.
The figure of the business broker
The figure of the Business broker, widely known in the Anglo-Saxon world, is much less known in Spain where there is the figure of the intermediary who only presents the parties, with the aim that they come to establish some type of business between them. However, the Business broker is that professional capable of configuring operations within the world of corporate finance that are of interest to business agents.
The Business broker is not a mere intermediary, which introduces the parties. The Business broker offers a wide range of professional services to its clients, of which the analysis of the activity of the company, gathering financial and industrial information of the company that allows to fix an economic amount of the sale, development of the strategy to contact the potential buyers of the company, etc.
The search for possible buyers is undoubtedly the most interesting work of this profession. The Business broker is the person who approaches potential buyers in a confidential manner, searches for capital, establishes the first contacts between both parties and provides ongoing advice during the course of the transaction.
The business broker, in addition to being a person specialized in law or economics, requires high knowledge of psychology. There may be various reasons for the sale of a company, including lack of offspring, need to redirect their professional activity to other sectors, etc. The business broker must act with tact, always giving personal support and putting himself at the seller's place at all times.
Business broker routes of action
The most characteristic lines of action in the world of intermediation in the sale and purchase of companies are the mandate of sale, purchase and the search for financing.
Through the sales mandate, the owner of a business orders the business broker to sell all or part of his business. In the event of the sale mandate, in addition to the location of those interested in acquiring the business, there are numerous contributions that the broker makes to an operation of this nature. For example, a business appraisal by the advisor helps the seller find the price range to move in to carry out the business sale. Requesting a price higher than the value determined by analysts often means that it is impossible to find buyers willing to enter the business.
The purchase mandate mandates the search for a business, either through a specific mandate for the purchase of a specific company or, in the abstract, a mandate to locate business opportunities with certain characteristics. By granting a mandate to acquire a specific business, the client manages to remain anonymous without anyone knowing his desire to acquire a certain business.
The use of interposed professionals who do not demonstrate a special interest in acquiring that specific business, but simply for business opportunities, can generate substantial savings for the buyer who acts through these professionals.
On other occasions, the order refers to the location of financing for the development of your business project. If financing is obtained through the transfer of part of the capital, apparently we would be talking about a partial sale of the company.
However, if the purpose is to achieve further development of the activity, the order would be made through a capital increase and the potential partner of the company would be different than in the case of a simple sale of a stake in the company. In the case of looking for an economic injection for the development of the business, it will be more convenient to locate financing formulas such as participative loans, business angels, venture capital, etc….
Dirinver ACBB provides these services as steps to take into account when selling or buying a company. We can say that the work of the business broker is a very high percentage of consultant (analysis, valuations,…) and another lower percentage of intermediary between the parties.
Future of the figure of the Business Broker
Unfortunately, the figure of the business broker in Spain does not have a good image. Today is the day in which the figure of the business broker is still associated as that of a mere commission agent and interested only in those operations that report immediate income without carrying out the work of analysis of the company or the market.
Just as people have a doctor who takes care of their body health, we must see the figure of the business broker as that of the person who takes care of our financial health and personal benefit.
From Dirinver ACBB, we bet on this figure, not in vain is it one of our activities within the company. Through our professional experience we can ensure that the figure of the Business Broker will improve over time thanks to professionals who enhance this work.
