June 2021 Newsletter
"Exclusive Selling Agreement" | Why is it Important?
Business Owners who have firmly decided to sell, often struggle with the term “exclusive right to sell". With this in mind, a third party Business Broker or Advisor can only complete the sale/ receive commission if the business sells under the terms of the Agreement. 

Many Sellers see this as a disadvantage, as oftentimes they have already been approached by potential Buyers in one form or another. A business owner may want to maintain the option so that if any of these early inquirers want to buy, they can complete the sale without a third party Business Broker.

Are you considering whether or not you need to bring in a Business Broker or Advisor to facilitate the sale of your business? If so, then the question to consider is “Why has the Business not been sold to any of the buyers who have already approached with an interest in buying?”

In some cases, the Broker may be used as the stalking horse to hedge against one of those potential buyers, thus ensuring that your price stays competitive. 

In any event, exclusive right to sell, has many advantages for the Seller, but that is often not the case for the Broker. An “Exclusive Right to Sell” in turn keeps a broker accountable, providing a lot of benefits to the Business Owner. For example;

  • The Broker will be highly motivated to market the Company and close a sale
  • The Broker knows the market and can position the Company to the highest value buyer. 
  • The Seller can entirely focus on running the Business with minimal distraction
  • Communication is clearly defined between Broker and Owner.
  • Communication is kept to the essentials for the Owner, keeping the Emotions in check. 
  • Confidentiality is best kept with clearly defined and organized Communication Channels. 
  • The Sales price and the chances to sell are both higher with a Broker involved, per statistics. 
  • One potential disadvantage to consider for the Seller is that he has to pay the Broker a commission in the event that the Buyer contacts him directly. With this in mind, a good agreement leaves room for that with a discount clause. 
Coach Tony | Leaving Your Comfort Zone
Are your employees cruising in the “Comfort Zone?” This is a question that any Small Business Owner should consider. If members of your team are not performing to their highest abilities, you may find yourself going beyond your daily workload to fulfill their duties. 

Instead, consider setting up a program/creating a culture that encourages your employees to go above and beyond in their day-to-day operations. Promoting the concepts of accountability and individual effort can go a long way in helping your employees elevate their performance and tap into a new level of productivity.
 
Consider your employee’s “Comfort Zone”... not in a physical context, but a mental context. Oftentimes, anxiety and fears are the biggest hurdles to overcome. In many ways, anxiety can be the enemy of both production and creativity. This can especially be true when faced with a new job or role. 

Whether someone is starting a new job, or getting promoted, these new responsibilities will force the employee to leave their comfort zone. For an individual, this can often be very overwhelming. Typically, it is best to encourage accountable employees to dive in and meet these anxieties head on, as that will be the best way to learn and grow from the experience.
It is only when you overcome your fears and anxieties, that you will achieve both breakthroughs and liberation in your life.
Mastermind Sessions - Sign Up for More info
CHV Group has been contemplating hosting Mastermind Sessions for groups of five or six people from multiple industries. The goal would be to exchange experiences to learn about the respective industries of one another. If you’re in Greer, Greenville, Columbia, let us know if you’re interested. Email tkoechli@chvgroup.com if you would be interested in attending a Mastermind Session!

We will also be posting plenty of Blogs and Resources on our LinkedIn Page! Click Here to Connect with us Today!
CHV Group LLC| www.chvgroup.com