Do you know right who is a business broker? Don’t mistake them with business set-up expert, by the way. A broker is an intermediary working on your behalf. Basically, their duty is to the business seller, agreeing to pay the broker commission on completing the transfer of business.
Also, they specialize in selling trading entities. Those businesses listed by the brokers are generally employed staff and has fixed assets. Usually, typical listing comprises bars, hotels, resorts, factories, internet cafes, restaurants, and guesthouses. Any prospective buyer can register with as many brokers they want.
However, the transfer of business is more complicated than the transfer of property. Therefore, a business broker charges quite a lot than any real-estate agent due to the additional work. Generally, the charge is between 7% and 12% of the buying price as compared to 5% charged by the realtors in Thailand.
Just so you know, the business brokers do not offer any guarantee of the businesses listed. The business can be flawed; it is completely the buyer’s responsibility for the identification of the problems. You cannot expect the broker to spend their time researching. It is you who will have to conduct due diligence to find out the quality of the business you are willing to buy.
Since in Thailand business brokering is unregulated, you will ample professionals offering such services. Therefore, you must only contact a business specialist for the job. When you get in touch with the one, make ask them these following questions;
- What is the lease period of the business?
- What is the reason behind selling the business?
- How long has been the business on the broker’s list?
- Is the broker’s agency sole or multiple?
Once you have found answers to these you can somewhat figure out things both about the business you are to buy and the broker.
