A listing agreement is more than just a piece of paper–it’s an agreement between the business owner and the business broker that sets out the terms of the sale.
In order to ensure that both parties are on the same page, it’s important to understand what a listing agreement entails.
Selling your business can be a very emotional decision. When you sign a listing agreement, you’re authorizing the sale of your business. This simple act represents the end of ownership for many business owners. It also signifies the end of a dream for others. For many, it also signifies the end of a long journey. The business owner may have started the business from scratch and/or taken it to the next level. A little of the business owner may always be in that business. The business, in many cases, has been like a part of the family.
This document outlines the terms of the sale and is essential in protecting both the buyer and the seller. It’s important to remember that when you sign a listing agreement, you’re starting a journey towards independence and business ownership. The buyer sees the business as the next step in their life, and takes great pride in owning it. As the seller, you’re in good hands and that all of the details is being taken care of.
This simple piece of paper is the bridge for both the seller and the buyer. The business broker looks at that piece of paper through the eyes of both the buyer and the seller, working to help both parties progress through the business transaction process into the new phase of their lives.