Selecting a Broker

The growing presence of corporate practices often results in an approach being made before you are ready or prepared for the sale of your practice. Therefore it is essential to know its value before accepting any offers.
This has resulted in an increase in the number of agents offering their services to sell your practice, ranging from accountants, lawyers, business advisory services and company sales brokers.
Deciding on which to use can be difficult for a busy practice owner. However, the following may act as a guide to allow you to shortlist 2 or 3 companies.

  • They should have the experience to estimate the potential value of your practice in the present market.
  • They should have the experience in negotiating with corporate buyers to obtain the maximum value.
  • They should maintain support throughout the sales process, including financial support to completion.

If the companies you have selected match the above, then short list the ones you feel can help -
Ask to meet them
Ask about their experience both in sales and financial accounting.
Ask about their success rate
Ask about their charges
Do not necessarily go for the broker who suggests the highest potential valuation.

The VBA offers the following service

  • No obligation initial meeting
  • Agreement on terms of business
  • Arrange a practice visit at a mutually acceptable time
  • Preparation of extensive sales memorandum
  • Complete confidentiality agreement with potential buyers
  • Market the practice to potential buyers [corporates]
  • Organise and attend potential buyer visits
  • Agree with seller a preferred bidder
  • Appraise all offers with the seller
  • Agree Heads of terms with preferred bidder
  • Assist with both financial and commercial due diligence throughout
  • Assist with production of SPA [Sales purchase agreement]
  • Assist in completion

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