What is a Business Transfer Agent?

At any time you will be undergoing a sale of a business it is imperative that you have a business transfer agent on your team. It doesn’t matter whether you are the buyer or seller, this person will help make the operation run smoothly for the sale. They will try on the behalf of their client, you, to get the best price. Business transfer agents can work nationally or internationally, and you should hire the agent based on your needs.

You are probably asking yourself right now what the business transfer agent does. We have that and more for you here:

Selling a Business

• The business transfer agent will be responsible for marketing and promoting your business for the sale. This may include drawing up a prospectus of the business as well as other items involved in the sale. The prospectus can be handed to potential buyers. It will also help the agent contact potential buyers that may be in their database looking for a business to purchase.
• The agent will be able to communicate between both parties as a mediator. However, as the one to hire the agent they will be working for you to get you the best deal.
• The agent will examine the business for value. They will determine what the business can be sold for and market it appropriately. There are many factors that will go into deciding the value of the business. The agent will also advertise the sale price. Most typically the sale price advertised is for more than the business is actually worth to give you negotiating room with the potential buyer.
• The business transfer agent can deal with all of the conveyancing. Conveyancing is where the property is transferred from seller to buyer. There is paperwork involved that the agent can file. However you may also want a solicitor in on this section of the deal.

If you are the person buying a business you will also need a business transfer agent. Like the sale portion of the agreement the agent can help the buyer with communication to the seller, paperwork needed, and of course the transfer of the funds and conveyancing.

It is up to you to find the business transfer agent that is most qualified to help with your business sale or purchase. You will need to check the agent’s references, how long they have been in business, what aspects they will deal with for the sale, and the fees involved in the sale. The agent will have fees charged to you for working on the sale of the business. The agent will need some things from you, for instance your books, VAT returns, and other asset information.