The involvement of a team of specialists in selling a business helps to maintain its market value both by quickly solving the problems that arise, but also by preventing them, because the process is, in most cases, long. You may need a lawyer, an accountant, but also an appraiser, a consultant and a broker.

A broker can play a very important role in selling a business, both for entrepreneurs who do not have experience in selling a company, and for those who have experience, but prefer to dedicate their time to running it.

A Business Broker can give you an estimate of the sale / purchase value of a business or transaction in general and can advise and assist you in the sale process. All these without revealing your identity in front of anyone (if the whole market finds out that the business is on sale, it will affect the sale value of the business or even block the transaction). Selecting potential buyers (pre-qualification of the buyer) before meeting with the seller, preliminary discussions, presenting opportunities and pre-negotiation are also services that can be safely provided by a broker, as well as assistance in the due diligence process and final negotiations, but also the assistance subsequent to the completion of the transaction.

business brokers

The benefits of working with business brokers

  • setting the asking price for the business is a real first challenge for sellers, and a Business Broker connected to the market pulse, with experience and a network of business contacts can provide valuable indications in this regard;
  • conducting an objective analysis of the business, to know what adds value to the business and what could be a problem for selling it, from the perspective of the buyer – investor;
  • a broker can help you maintain the confidentiality of your intention to sell the business and represent you before disclosing the details to those who are really interested to purchase;
  • making important decisions during discussions with potential buyers;
  • advertising the sale in relevant business environments, taking over the requests from the interested people and checking their good intentions.

For businesses that are more difficult to evaluate, hiring a broker is very important because it can help you determine the valuation method and the right price for your business. A good broker will charge a commission, but the services provided and the profit it can generate is worth the investment.

How to find the right broker for your needs

  • Make sure the broker you want to work with deals with businesses, not with real estate;
  • Interview several brokers to find the right one;
  • Ask them if they have ever sold business in the same field as yours;
  • Discuss their experience, how long they have been in the field and how they intend to advertise you.

Privacy is very important!

Do not forget to sign confidentiality agreements with the sales team, to ensure the normal operation of the business during the sales and transition preparation process. When there is too much information about your plans, you can lose customers, employees and especially potential buyers.

 

Professional liability insurance is also referred to as professional indemnity or errors and omissions insurance and has been created to protect businesses and service providers from the cost of dealing with negligence lawsuits and other claims related to errors during job performing.

Who needs professional liability insurance?

Every business and service professional providing expert advice and service should be covered by this type of insurance. For examples, lawyers and doctors are required by the law, in some states, to purchase liability insurance, which, in their case, is known as malpractice insurance. Other examples of business owners and professionals who could benefit from purchasing this type of insurance include engineers, architects, accountants, financial consultants, marketing and advertising professionals, real estate brokers etc. In other words, any professional advice or service that could go wrong and harm clients should be covered, to avoid paying lots of money from your pocket for compensations and dealing with lawsuits. Any client might take legal action against you, so you would better be covered, otherwise you may sink in debt and even be forced to close down your business.

professional liability insurance

Why you need professional liability insurance?

Because we are all subject to mistakes, no matter how good are our intentions and how well-trained we are in our job. Besides, it is not always about negligence, but also about misinterpretation and even violation of good faith.

Examples of incidents covered by professional liability insurance

  • Doctors who misdiagnoses patients’ condition or cause them unintentional injury during surgeries or other medical procedures.
  • A professional or a marketing team of a company uses copyrighted images or text for social media marketing
  • A company signs a contract with a supplier for some materials, but receives poor quality products  and no quality assurance check

In the unfortunate case that your business is sued by a client, being covered by professional liability insurance will provide you a lawyer as well as compensation for any damages that arise from the lawsuit, whether or not you are at fault. This type of insurance extends to allegations brought against, your business partners and employees.

What is not covered?

  • Bodily injuries – With the exception of medical malpractice, where bodily injuries are covered, others require other types of insurance such as product liability, general liability insurance or workers compensation
  • Physical property damage – This is typically covered by general liability or property insurance
  • Illegal actions or intentional wrongdoing
  • Employment discrimination – This falls under employment practices liability insurance

If it seems overwhelming to consider so many types of insurance, don`t worry; in most of the cases they come together in one package.

The cost of professional liability insurance Colorado

What will you pay for general liability insurance Colorado want to know? The price you will pay for being covered is influenced by some factors including your industry, location, the number of your contracts, the training you provide to your employees and the control procedures you use. Also, the more coverage you need, the higher your costs and the higher your deductible, the lower your premiums.

It is also important to know that your insurer will also take into consideration the history of lawsuits filed against your business, which can also increase your premiums.