How will the agent perform the pricing?

The pricing of the business is one of the most complicated aspects of the agent's role as many different factors are taken into consideration. Each business will vary greatly and thus different features will manipulate the price in different ways, but the following aspects usually will be taken into consideration:

• Initially the agent will establish whether the business is freehold, leasehold or subject to some kind of licence. This will affect the valuation as the buyer may have to pay extra for a lease after the business is sold if it is currently under a lease that will shortly run out, or they may need to pay to have the lease transferred. The license may also cost a great deal to renew.
• The state of repair that the business is in will also affect the price, as will any extra facilities that are provided.
• The agent will make allowances for loan interest, one off expenses, depreciation and any contributions that the owners make towards the running of the business/work, as these are often not accounted for in the wage costs.
• The agent will also take into consideration equipment and machinery, fixtures and fittings, opening hours, and the range and variety of services and products that the business provides.
• Local and national competition will also affect the price, as will the location of the business.
• The finance available to the prospective buyer will also manipulate the cost that the business will sell for if there is limited interest in it.

What legal and financial guidance will the agent give me?

• If you are buying a business and not its current premises, you need to be able to prove that you have the right to run a business from your property. For this you will have to have planning permission and legal covenants, and if your property is leasehold the agent will require lease clauses, as well as the landlord's permission to transfer the lease.
• If you are selling your business then you will need to be able to prove to the agent that you own and have the right to sell the goodwill of the business. You may also have to agree not to set up in direct competition with the person who buys your business.
• The agent will also sort out any issues of stock value and, if there are any monies owed to the business, how much these will value.
• The agent will also be responsible for sorting any staff issues. This will include having legal knowledge of whether they will have to be kept on at the business or, if not, issuing redundancy.

What qualifications should I look for?

There are no official qualifications which a business transfer agent must have, and the best judge to use is the length of their experience. However, you should make sure that he or she is accredited by the National Association of Estate Agents (NAEA).

• To become a fellow of this association the agent must possess the NAEA Certificate in Commercial and Business Transfer Agency, must be over 25 and have a minimum of five years experience.
• To become a member of the association, the agent must hold the NAEA Technical Award, be over 21 and have three years experience in the industry.
• To become an associate, the agent must have completed the NAEA Technical Award, but can be under 21 and have less than three years experience.

Not only do these different forms of membership ensure that the agent has specific qualifications and experience, but it also means that they will undertake 12 hours of Continuing Professional Development each year, and abide by the Rules of Conduct and the Code of Practice which this association has.