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Posts Tagged ‘Business Consulting’

What Is Business Broker And The Reasons To Hire A Business Broker

Sunday, June 23rd, 2013

Business brokers are often considered an unnecessary addition to the process involved in buying or selling a business by owners or interested buyers. However, when probed deeper, these misgivings surface as fears of high brokerage or the fear of trusting someone else with a business you have lovingly built over a period of time.

Business brokers help you in the sale and purchase of businesses. They charge fees for providing brokerage services. The fees depend on the size of the business, the final sale and the purchase price. There are different business brokers for dealing with different kind of businesses.

Traditionally, a business broker helps to identify acquisition targets for some client looking to expand. People can also obtain business broker jobs in a variety of other market segments, including mortgage lending, investment services, and the insurance industry.

Common functions of business broker jobs include matching the seller of a business with a buyer or a buyer with a seller, depending on the needs of a client. Business brokers are good at making discreet inquiries in the market to find potential buyers or sellers, and a much higher price than what you are presently being offered.

If you have a small business to sell, you might not be able to get in touch with a big company which you see as a potential buyer. But a business broker could do that. They are in touch with most of the big corporations. In fact, some of the business brokers specialize in dealing only in small businesses.

There are some reasons why including business brokers make more sense from the business viewpoint. First at all, a business brokers know the process. We may have been successful in building a business in their particular industry, but this may not guarantee that we know the process involved in sales or acquisitions. In contrast, business brokers are trained for this work.

Secondly, a business broker understands the market. They know the market. Selling and purchasing a business is their job, and they are clued in onto the data and information related to it. When business brokers represent sellers, they speak from an informed perspective.

How do you determine whether a business is the right purchase for you? It may be a difficult prospect to find a business that suits your requirements and which also comes at a price that you can afford but successful business brokers could be generalists who spend time understanding your requirements and then if needed, pull in specialists with data on the specific industry you’re looking at.

Apart from business broker services, they offer professional support in the areas of exit planning, value assessment, strategic buyer identification, etc. They also conduct professional negotiations, deal structuring, confidential client marketing, and discreet private auctions, among others.

I n short, working with business brokers can be an excellent way of quickly affecting the transaction as it relates to the sale of the business through the acquisition of the business. However, it should be noted that with the advent of the Internet, there are a number of different portals that you can use in order to test the waters prior to engaging business brokers to assist you with selling your business or buying a business.

Cross-Cultural Competency

Friday, December 11th, 2009

In today’s global marketplace, the chances of losing business due to cultural misunderstandings run high. The above example perfectly illustrates how a lack of cross-cultural competency negatively impacts business abroad. Did the Americans not know that in Libya it is the norm to be late? Did the Libyans not realise that the Americans would have expected them on time? Both parties were at fault yet also blameless at the same time. A little cultural awareness would however have radically improved the outcome.

Culture can no longer be taken lightly by businesses. None of us are exempt from dealing with foreigners anymore. Our businesses and personal lives have become more unpredictable and to guarantee success we have to adapt. Let’s be clear culture is not just about how people shake hands and exchange business cards. You could memorise a book of do’s and don’ts for India and still experience confusion and difficulty working with the Indians. It is about learning to survive in the globalized maze of modern business.

The first step to cross-cultural competency is to rid oneself of assumptions, prejudices and stereotypes. Modern business calls for modern thinking; thinking where no one is at fault and where people have differing priorities and values. Accepting that we do things in different ways and adapting behaviours to this is 80% of the battle won.

Having said all this why do businesses nowadays not prioritise cross-cultural competency training? Part of the reason is that it is still seen as a soft-skill and not as important as hard-skills like engineering or IT. Whereas one can quantity whether they have learnt IT skills, how can a business quantify if an employee has become more culturally competent? Businesses favour measurable results, and in the case of cross-cultural competency the true value may not get quantified until too late, such as when two of their sales people walk away from an important meeting with the Libyan government!

Companies that incorporate cross-cultural competency into their core values always come out on top. Not only do they lower their risk of lost revenue, but they also gain a new set of strategies and a clear perspective of what is offered by other cultures. Globalization has completely reshaped the flow of information, goods and services and it is crucial to view the business world differently. Rather than view successful cultural skills only as a means to prevent lost revenue, smart decision makers and employers emphasize the personal benefits of cross-cultural competency.