What is a Business Transfer Agent?

In business you have advisors to help you.  You typically hire a solicitor to ensure any legal aspects of your business are covered.  You also hire an accountant to keep the books or at least help you with tax returns during the year.  All of the advisors you have on staff can help you with a business sale for their specific duties.  An accountant can help evaluate the business and the solicitor can draw up the legal documents you need to complete the sale.  However, these two advisors may not have the best connections when it comes to finding a potential buyer.

This is where the business transfer agent can come in.  A business transfer agent is a broker who works for you as an intermediary between you and the potential buyers of your business.  A business transfer agent’s duties are to advertise, market and then sell your business.  More specifically the transfer agent will be involved in every step of the business from finding the potential buyer, creating the sale documents, evaluating the business, and helping with any conveyancing that is needed.

A business transfer agent can do the work of three or four advisors.  There is a fee for the business transfer agent.  This fee will depend on how much you sell the business for, in most cases.  A business transfer agent generally gets a commission from the sale that helps pay for all of the work they did to get the business sold.

There are a few ways the business transfer agent can market your business.  Most agents have their own online site.  They will begin advertising your business on their site, outlining the specifics for a potential buyer including the price.  The agent may also choose other database sites that are online for advertising.  These databases are set up to work per industry, meaning your business will be listed within the industry category.

Your agent may also have you place a sign in the window, advertise in the newspaper, or in other media.  You have the option of deciding where the agent will market your business.  If you are trying to keep the sale quiet, especially from employees you will want to steer clear of newspapers, window signs, and more obvious places to advertise.

Business transfer agents are also helpful because they can offer you contacts.  A business transfer agent can also work for potential buyers.  A buyer may have stated they want a specific business and to call them if the agent gets a listing.  In this case the agent will be working for both sides.

A potential buyer will also have advisors.  They, like you, may go for the business transfer agent because of their connections or they may bring a solicitor and their own accountant to evaluate the business.  The main thing to remember about a business transfer agent is that they can perform the necessary legal transfers needed.  The agent will draw up the sale documents and file them with the appropriate business entities.