Recently I wrote about various business brokering practices.  This is a summary of my practice, as written for a selling client:

My brokering practice is multifaceted and, at the same time, responsibly limited.

Included in the practice for my client sellers is preparing a valuation based on successful New Mexico business sales, validated against the market and buyer perspective; preparing and executing a marketing plan, including writing a marketing document for distribution; generally vetting buyers for presumed capabilities; securing non-compete, do-no-harm agreements; introducing the business and, if appropriate introduction buyers and sellers; managing the process of information exchange and the transaction; writing and presenting the offer, pointing out potential problems with the buyer or the offer; negotiating the offer for mutual agreement; formalizing changes in the agreement and ensuring communication to the neutral attorney regarding the various agreements for preparation of final documents and fund exchange; and protecting and representing the seller’s interests, assuming they are contracted with me for the sale.

If the seller is not my client, then, I must be fair and honest with the seller.

I do not interpret seller’s books and records for the benefit of the buyer or recommend operational practices.  Nor do I guarantee the buyer’s capabilities for the seller.  I am not an accountant or lawyer and thus cannot give the advice of such professionals.  However, I consider it my job to recommend legal and accounting expertise and to raise concerns if it occurs to me that such concerns may exist.  It is in the best interest of both parties to seek legal and accounting advice.

See the prior blog entry of general broker responsibilities and the following entry for the buyer perspective.