General Information

In Colorado all Real Estate transactions are governed by DORA.The Real Estate Division dedicated to preserving the integrity of the marketplace and is committed to promoting a fair and competitive business environment in Colorado. The primary goal is active Consumer protection. To enforce state and federal laws, rules, regulations and standards and impose disciplinary action when recommended.

A brokerage relationship can be defined as a working relationship between a licensed real estate broker and a buyer or seller to engage the services of the licensed broker on behalf of the buyer or seller in acquiring or marketing real property. This relationship may be limited agency or non-agency according to the agreement of the parties. In the absence of a signed agreement regarding the brokerage relationship, the default position under Colorado License Law is “transaction-brokerage”.

A great rule of thumb to keep in mind especially in real estate related transaction is: unless it is written and agreed by signature, it is not enforceable.

The Colorado real estate Division offers the public 3 agencies to choose from when a Real Estate licensee is involved. A broker is required by law to inform the public in writing the services they are offered to choose from.

Seller agency: representing owing the loyalty and fiduciary duty to the seller only.

Buyer agency: owes the loyalty and fiduciary duty to Buyer only.

Transaction agency: Represents neither buyer nor seller just facilitates the transaction. Hence is not liable to either party.


A professional business broker can be helpful in many ways. They can provide you with a selection of different and, in many cases, unique businesses, including many that you would not be able to find on your own. Approximately 90 percent of those who buy businesses end up with something completely different from the business that they first inquired about. Business brokers can offer you a wide variety of businesses to look at and consider.

Business brokers are also an excellent source of information about small business and the business buying process. They are familiar with the market and can advise you about trends, pricing and what is happening locally. Your business broker will handle all of the details of the business sale and will do everything possible to guide you in the right direction, including, if necessary, consulting other professionals who may be able to assist you.

Your local professional business broker is the best person to talk to about your business needs and requirements.

A broker and a realtor are both licensed person to act within the guidelines of the state of Colorado regulatory agency.

A realtor can be a broker but unless a broker is a member of a national realtor association which sets the standards of public ethics, he is not a realtor. A realtor is governed by specific guidelines set by the NRA and governed by not only the Colorado Consumer protection agency; Realtor association arbitration which provide an additional layer of protection to the public from negligence.

The specific written agreement identifies who pays the brokers. Unless agreed separately, it is part of the sales price the seller receives from the Buyer and paid by the seller.

In general, the fiduciary duty is governed by the agency one chooses. In the event of a dispute or mistake the public hire an attorney to rectify. A realtor is governed by specific guidelines set by the NRA and governed by not only the Colorado Consumer protection agency; the public has an additional layer of protection from Realtor association arbitration.


For some people, buying an existing business is a better option than starting one from scratch. Why? Because someone else has done much of the legwork for you, such as establishing a customer base, hiring employees, and negotiating a lease. Still, you’ll need to do some thorough research to make sure that what you see is what you’ll get.

Obviously, you want to consider only those businesses that you would feel comfortable owning and operating. “Pride of Ownership” is an important ingredient for success. You also want to consider only those businesses that you can afford with the cash you have available. In addition, the business you buy must be able to supply you with enough income – after making payments on it – to pay your bills. However, you should look at a business with an eye toward what you can do with it – how you can improve it and make it more productive and profitable. There is an old adage advising that you shouldn’t buy a business unless you feel you can do better than the present owner. Everyone has seen examples of a business that needs improvement in order to thrive, and a new owner comes in and does just that. Conversely, there are also cases where a new owner takes over a very successful business and not soon after, it either closes or is sold. It all depends on you!

Look for a business that has some connection to types of work you’ve done in the past, classes you’ve taken, or perhaps skills you’ve developed through a hobby. It’s almost always a mistake to buy a business you know little about, no matter how good it looks. For one thing, your lack of knowledge about the industry might cause you to overpay. And if you do buy the business, you’ll have to struggle up a steep learning curve afterward. But do try to choose a business that you’re excited by. It’s easier to succeed in business when you enjoy the work you’re doing.

The first steps to finding the right business to buy are to outline your requirements (revenue, net income, location, type of business, etc.), determine how much you can invest in a business, and then develop search criteria to identify potential opportunities. We will work with you with the objective of matching you to the best business opportunity available, at each step in the process. A key factor to your success as a business owner will be finding a business that you can develop a passion for – something you will want to work hard for – not only to make money but to enjoy doing it. People do better when they love what they do!

Before you seriously consider buying a particular business, find out as much as you can about it. Thoroughly review copies of the business’s certified financial records, including cash flow statements, balance sheets, accounts payable and receivable, employee files including benefits and any employee contracts, and major contracts and leases, as well as any past lawsuits and other relevant information.

This review (lawyers call it “due diligence”) will not only help you understand how the company ticks, but will alert you to potential problems. For instance, if a major contract like a lease prohibits you from taking it over without the landlord or other party’s permission, you won’t want to finalize the deal without getting that permission.

The most common ways to finance the purchase of a business include equity credit, owner financing and SBA financing. The method you use will depend on the size of the business, the quality of the documented historic earnings and the owner’s willingness to provide financing. There are some niche sources catering to qualified buyer who meet certain criterion.

Once you determine that a business fits your requirements and you have negotiated a contingent purchase contract you will have the opportunity to conduct a due diligence review of the business. During due diligence, you will have the opportunity, yourself or with a CPA, to review the detailed financial records, invoices, bank statements, contracts, leases, etc. that will help you to determine the accuracy of the business records. Generally, any significant discrepancies between the financial results as presented and the underlying proof documents is reason for you to either revise or cancel the purchase contract with return of your initial deposit.

Buying your own business is the best way to build wealth and control your own destiny. Finding a business you have a passion for – something that will make you want to get up in the morning and go straight to work is our goal. Matching you to the business opportunity that best fits your needs is what being a business broker all is about. Buying a business is more than just looking through internet ads. We will work with you every step of the way. We can help you by:

  • Meeting with you to review your skills and business experience, your interests, and your finances to determine the best types of businesses to focus on for our search.
  • Working with you to explore promising buying opportunities. Often this includes reviewing financials, meetings with the business seller, etc.
  • Helping you to structure a contingent offer and negotiate with the business seller to get to a purchase contract, when we have found the right business opportunity

After you have outlined the terms on which you and the seller agree, you’ll need to create a written sales agreement and possibly have a lawyer review it before you sign on the dotted line. Once you have a purchase contract in place, there are a number of key activities necessary to assure you are getting the right business for you. Due diligence, lease negotiations, licenses, financing, etc. all need to be successfully completed before you go to the closing table. If you’ve thoroughly investigated a company and wish to go ahead with a purchase, there are a few more steps you’ll have to take. First, you and the owner will have to agree on a fair purchase price. A good way to do this is to hire an experienced appraiser. Next, you and the business owner will agree on which assets you’ll buy (such as a building and equipment) and the terms of payment. Most often, businesses are purchased on an installment plan, with a sizable down payment.


There are many reasons why you might want to sell your business, including retirement, relocation, health issues and personal situations. However, the number one reason owners sell their business is “burn-out”. This includes many owners who have been very successful and have built a great business, but are now ready to sell and move on to a new challenge. Or it may just be time to cash in on hard work and take some time off. No matter your reason for selling a business, we can help you to effectively value, package, market, and ultimately sell your business.

If you’re really serious and have a solid reason (or reasons) why you want to sell, it will most likely happen. You can increase your chances of selling if you can answer yes to the second part of this question: “Do you have reasonable expectations?” A yes answer to these two questions means you are serious about selling. If money is the only reason you want to sell, then you may not be a motivated seller.

Before you ask that question, you have to be ready to sell for what the market is willing to pay. The common mistake Business owners make when they make a decision to sell is what they think their business is worth, or what you want for it. It also doesn’t make any difference what your accountant, banker, attorney, or best friend thinks your business is worth. Only the marketplace can decide what the value of your business is. To most, it is priceless it is their own sweat and blood cannot be quantified in a price. Valuation is a crucial step in the selling process. We will conduct a comprehensive analysis of your business and your financial statements. We use the Market Data Method to determine the best, most achievable sales price in the market based on an analysis of sales data from comparable companies. In the end, “The Market” will determine the value, but setting the right listing price will help you to effectively market and sell your business.

There are many reasons to use a business broker to sell your business. The most important reasons include:

  • Helps to get the right price and the right terms for your business.
  • Allows you to focus on running your business – making it even more attractive to potential buyers.
  • Assures confidentiality of business information.
  • You only deal with qualified business buyers who have a good understanding of your business.
  • Expert help with negotiations, contracts, financing alternatives, due diligence and the many items needed to get from an offer to sale of your business.

Normally we do not charge a sellers fee unless and until the sale is consummated. All sellers’ fees are usually paid at the closing table, deducted from the gross proceeds of the business sale. However, there are times the Sellers are required the pay for marketing costs based on the nature of business and cannot be sold easily.

The overall average from listing a business for sale to closing is about 6-8 months. Some businesses sell faster than others and some take much longer. Keep in mind that this time frame includes the total time from listing your business to closing, and includes marketing, finding and qualifying buyers, negotiating the contract, due diligence, financing, etc.

It is often very difficult to prove to a buyer that you have income that is not documented in your company’s financial statements. And there’s an old expression – you can’t have your cake and eat it too! The bottom line is that bank financing is based on business tax returns. However, we can in many cases help you to get at least some of the added value that additional revenue would bring to your company. It may mean additional owner financing to get the higher value that reporting your total income would support. If you are considering a sale, stop taking cash and report all of your income. We’ll be happy to show you how much added value this can bring when you sell your business.

Conducting a thorough business valuation and preparing a comprehensive file to present your business to prospective buyers are key to the success of the sales process and the due diligence review. You should give us copies of your business tax returns and/or financial statements for the last three years and the current year, copies of important documents like leases and franchise agreements, a comprehensive list of all of your equipment, furniture and fixtures, an inventory report and other relevant documents important to understanding your business.

Other Info


Most people are not aware of the fact that they have a silent partner in their business. The partner is called IRS. He demands a lion share of the profit though not involved in daily operation of the business. One of the most frequently used tools to defer the tax obligation is called 1035 exchange. The capital gain tax on a real property can deferred by acquiring a property of higher value. The tax is not due till the disposal of that property. You must seek professional help of an attorney and CPA.


There are several means of keeping ownership each has its own merits and setbacks. A good accountant and Attorney would be able to advise what may fit each client based on their specific need. The common classifications are:

  • Sole proprietorship: Where the owner is one person
  • Partnership: Owning with another person
  • Corporation: A non-person entity governed by the stock in the company
  • A Limited Liability company

Buy-Sell Agreement

A legal agreement employed by both partnerships and corporations to buy or sell their interest to the remaining party for a pre-determined price either due to a premature death or departure from the company. There are several advantages to have buy sell agreement in place:

  • It provides a guaranteed price for the share of ownership.
  • Guarantees an exit strategy without costly litigation.
  • It guarantees business continuation without interruption

Funding a Buy-sell agreement

The most common tool to fund a buy-sell agreement is through Insurance. As the life insurance proceeds are income tax free, in the event of a partner or shareholder’s premature death, per the agreement the shares are released to the surviving partner in exchange of a predetermined price which is paid from the Life Insurance proceeds.



Insurance is protection against unexpected loss against loss to property and Life. Generally business owners secure two kinds of insurance protection tailored to meet specific loss. Most property owners and lenders may require additional protection by adding various protection packages.

Fire and accident Insurance

This kind of Insurance deals with the property where the business is operated from. Common item is fire and destruction from the forces of nature. Rain, hail, wind, snow can cause damage the business may not be operable safely.

Liability Insurance

This kind of insurance protects a business and its operators from negligence of their own or the customers who comes to the location of Business.

Life Insurance

This protects the most valuable asset, the human life. Usually this kind of protection can be bought and funded through various kinds of life insurance.

Key person Insurance

For most neglected form of Insurance is Key man Insurance. Though easily seek coverage in the event of damage due to fire and flood, it only protects the replaceable assets. The most irreplaceable asset of a business is human life/ the ability to run the business which generates a continuous income to meet all aspect of business. Everything is centered on the decision maker the driver of the company to make sure the income is generated to keep the wheels rolling.