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Elements and Performance Criteria

  1. Qualify buyer.
  2. Provide information to clients.
  3. Manage negotiation.
  4. Execute contract.
  5. Manage contract to settlement.

Required Skills

This section describes the essential skills and knowledge and their level required for this unit

Required skills

access a variety of information relating to selling a business

determine most appropriate sales methods

identify current market trends and positions

interpersonal communication and negotiation skills to negotiate and execute a sale

interpret and comply with relevant legislative requirements

liaise with sellers buyers and their respective agents and other staff

obtain information relevant to selling a business and provide information on the sales process and its progress

relate to people from a range of social cultural and ethnic backgrounds and of varying physical and mental abilities

resolve potential negotiation dilemmas buyer or seller concerns and issues and conflict arising from the sale process

select and use appropriate technology

Required knowledge and understanding

agencys business structure

conflict resolution techniques as they relate to sales processes

interpersonal communication and negotiation techniques

mechanisms to obtain and analyse buyer or seller comments and feedback

organisations policy and procedures for client service and sales including ethical behaviour and marketing procedures

principles and techniques for communicating concerns to buyers and sellers

principles and techniques for selling a business

relevant federal and state or territory legislation and local government regulations related to

antidiscrimination

business broking

consumer protection

environmental issues

equal employment opportunity

financial probity

franchise and business structures

industrial relations

OHS

selling a business particularly through an agency

risk factors relating to various transactions

service standards and best practice models

types of sales techniques and benefits and limitations of each for a variety of clients and settings

Evidence Required

The evidence guide provides advice on assessment and must be read in conjunction with the performance criteria required skills and knowledge the range statement and the Assessment Guidelines for this Training Package

Overview of assessment

This unit of competency could be assessed through practical demonstration of negotiating and executing the sale of a listed business within the context of a business brokerage Targeted written including alternative formats where necessary or verbal questioning to assess the candidates underpinning knowledge would provide additional supporting evidence of competence The demonstration and questioning would include collecting evidence of the candidates knowledge and application of ethical standards and relevant federal and state or territory legislation and regulations This assessment may be carried out in a simulated or workplace environment

Critical aspects for assessment and evidence required to demonstrate competency in this unit

A person who demonstrates competency in this unit must be able to provide evidence of

analysing sales process buyer intentions and seller expectations

communicating and negotiating with relevant parties and monitoring the sales process to ensure successful completion of the sale of the business

documenting and distributing information to all parties pertaining to the sale

knowledge of agency practices ethical standards and legislative requirements associated with negotiating and executing the sale of a listed business

preparing and structuring information and documents relating to the negotiation and completion of a sale

Context of and specific resources for assessment

Resource implications for assessment include

access to suitable resources and simulated or real opportunities to demonstrate competence

assessment instruments that may include personal planner and assessment record book

access to a registered provider of assessment services

Where applicable physical resources should include equipment modified for people with disabilities

Access must be provided to appropriate learning andor assessment support when required

Assessment processes and techniques must be culturally appropriate and appropriate to the language and literacy capacity of the candidate and the work being performed

Validity and sufficiency of evidence require that

competency will need to be demonstrated over a period of time reflecting the scope of the role and the practical requirements of the workplace

where the assessment is part of a structured learning experience the evidence collected must relate to a number of performances assessed at different points in time and separated by further learning and practice with a decision of competence only taken at the point when the assessor has complete confidence in the persons competence

all assessment that is part of a structured learning experience must include a combination of direct indirect and supplementary evidence

where assessment is for the purpose of recognition RCCRPL the evidence provided will need to be current and show that it represents competency demonstrated over a period of time

assessment can be through simulated projectbased activity and must include evidence relating to each of the elements in this unit

In all cases where practical assessment is used it will be combined with targeted questioning to assess the underpinning knowledge Questioning will be undertaken in such a manner as is appropriate to the language and literacy levels of the candidate and any cultural issues that may affect responses to the questions and will reflect the requirements of the competency and the work being performed


Range Statement

The range statement relates to the unit of competency as a whole. It allows for different work environments and situations that may affect performance. Bold italicised wording in the performance criteria is detailed below. Add any essential operating conditions that may be present with training and assessment depending on the work situation, needs of the candidate, accessibility of the item, and local industry and regional contexts.

Appropriate rapport relates to use of techniques that:

establish and build confidence and trust in the agency and its representatives

make the seller or buyer feel valued

promote and maintain an effective relationship with the seller or buyer.

Agency requirements may be outlined within:

access and equity policy, principles and practice

business and performance plans

ethical standards

goals, objectives, plans, systems and processes

legal and organisational policies and guidelines

mission statements and strategic plans

OHS policies, procedures and programs

privacy and confidentiality requirements

quality and continuous improvement processes and standards

quality assurance and procedures manuals, including sales and client liaison procedure manuals.

Appropriate interpersonal communication techniques may include:

active listening

providing an opportunity for the buyer or seller to clarify understanding of the sales process

soft questioning and seeking feedback from the seller or buyer to confirm own understanding of their needs and expectations

summarising and paraphrasing to check understanding of seller or buyer's message

using appropriate body language.

Information may include:

advantages of various purchases and purchasing options

seller's views on sale of business or lease of property

business profile portfolio

levels of interest in business

packaging and presentation of sales proposal to the prospective seller.

Factors may include:

arranging appointments

buyer capacity

buyer credentials, including financial position

buyer entity or status

buyer needs

confidentiality agreements

involvement of third or other parties in process and negotiations

legal documentation and agreements regarding sales

seller motivation and requirements.

Action plans may include:

arrangements for obtaining deposits

arrangements for suitable inspection times

arrangements to secure seller's initial interest

arranging and facilitating a stocktake

attending to legal requirements, including preparation and exchange of required legal documents

contingency plans to accommodate changes and resolve complications

developing the terms of contract

strategies for maintaining relationships between the parties during negotiation and providing exchange of information directly or via third parties/agents

strategies to ensure time lines are met.

Potential areas of conflict may relate to:

inventory, fixtures and fittings, valuations and determining level of goodwill

involvement of agents and other parties

price

pricing structure

responsibility for future employee entitlements

sales process

time lines

transfer and transitional arrangements.

Legislative and industry requirements may include:

access and equity policy, principles and practice

business and performance plans, including organisational goals and objectives

client service policies

industrial awards

industry and agency codes of conduct and practice, and code of ethics

legislative and statutory requirements for provision of business brokerage services

legislative and statutory requirements for the sale of a business or provision of business brokerage services to sell a business

OHS policies, procedures and programs

organisational policy, guidelines and requirements

policies and procedures relating to own role, responsibility and delegation

records and information systems

reporting and communication structures

terms and conditions of employment.

Seller and buyer requirements may include:

clarification of business structure

need for quick sale

need for transparency

need to specify plant, equipment, fittings and fixtures to determine ownership

transfer of franchise agreements

transitional arrangements

use of business name.

Feedback may be collected from:

formal and informal discussions with existing and previous clients

information from potential buyers

information provided by others involved in the appraisal process, both internal and external to the organisation

market share data

sales and completion results.

Standard and special conditions may include:

additional options

assign new lease, option, site licence or variation

transfer or renewal of licences and permits

franchise agreements

intellectual property, such as business names, patents and copyrights

trademarks

domain names and email addresses

telephone and facsimile numbers.

Assisting professionals may include:

accountants

financiers and financial institutions

landlords and managing agents

legal advisers

licensed settlement agents

nominated conveyancers.