Business transfer agents have many different names. Some are called commercial estate agents, others go by the name of business selling agents. Whatever you choose to call them, this article will help explain whether you need one to help sell your business.

What is a business transfer agent?

A business transfer agent is essentially and to put it simply somebody who will sell your business for you. They operate in the same way that an estate agent does. This means that they handle every aspect of the sale of your business for you.

Business transfer agents typically only deal in selling small businesses. If you are looking to sell a large business (around £5 million plus turnover) then you will need to find a specialised intermediary.

Doing so may be tricky however as you won’t find them on Google like you can with business transfer agents. It’s best to speak with your accountant if this describes your situation.

What will they do for me?

There are a few things that business transfer agents will do as part of their service. These can include:

• finding buyers,
• dealing with negotiations and,
• valuation expertise.

By having your business transfer agent do these things, it allows you to focus on the day to day running of your business. This is vital – just because your business is on the market doesn’t mean you can take your foot of the pedal when running it.

Their experience may also help you secure a better deal.

Are they reliable?

I imagine all of this sounds a little too good to be true, and that’s because it is… partly. Business transfer agents have a bad reputation because you do not need any qualifications to become a business transfer agent.

The Daily Mirror have been campaigning on this topic for years – click here to read journalist Andrew Penman’s investigation from 2014.

There aren’t any dedicated guiding industry bodies to help you through the process of becoming a business broker. For many sellers, the world of the business transfer agent can seem like the Wild West.

Here are a few things that you should be cautious of when choosing a business transfer agent:

• pushiness,
• inexperience,
• unfair fees.

Some business transfer agents don’t even charge a fee for their services. Instead, they will just take a commission once the business has been sold. However, these are the agents who generate the most amount of complaints as they can end up in court over payment disputes.

What’s the verdict?

Many agents themselves will claim that if you use their services, they will “guarantee” that you will get a better price for your business. You’re probably long enough in the tooth to know that there’s no such thing as a guarantee in business, so be wary.

Try to find a business transfer agent competent, experienced, and knowledgeable in their field. Finding these diamonds in the rough is the hard part.

Just make sure you go for reputable agents who have a lot of reviews written about them. This is the best way to ensure you are not dealing with someone who’ll struggle to help you sell your firm.

How can we help?

The services we can offer people looking to sell their business include:

• Preparing the sale of your business,
• Helping during due diligence,
• Preparing the net liability statement (this is an important one)
• Assisting with the taxes associated with the sale of your business.

We’ll work alongside your business transfer agent to deliver you the greatest benefits when selling your business.

If you are looking to sell your business, and you need our expert guidance and council, call our specialist team today on 01606 333 900 or email hello@burtonbeavan.co.uk.