Not many people have heard about business brokers let alone know what they actually do. They are usually not a popular job, but if you have heard about them and want to know more about them then continue reading on.
Business advisors are basically those who intermediate between buyers and sellers to help facilitate the sale of small scale to medium sized private businesses. Not anyone can become a business broker, they need to have the right knowledge, skills and training from a professional body like the America Business Brokers Association.
So what do business brokers do?
There are many tasks that these professionals do such as:
They are in charge of marketing businesses that are for sale. When they advertise these businesses, they maintain strict confidentiality. This means that they do not disclose sensitive information such as the owner of the business.
Furthermore, they introduce potential buyers to the business and facilitate the meeting between the owners and those who want to buy the business. They are also the ones who handle the negotiations once an offer has been laid out. They are also in charge of closing the transaction and drafting a confidential sell business review.
How to They Earn?
Just like any sales agent, they earn their living through commissions. After they have sold a business, they get a commission. Usually their commission can range from 8% to 12% depending on the transaction. You will most likely encounter business brokers who charge a 10% commission, but if you are trying to sell a small business, commissions can usually be higher than this.
How to Work with a Business Broker
Just like any transaction or employment, you need to make sure that you are hiring the right broker. This means that you need to do your research and find a reputable broker with the right credentials. The main things you need to look at are the professional’s experience, reputable, work ethic and specialization.
Once you find a prospective broker, you should hash out the details regarding the commission and give her the details she needs to find the perfect buyer or seller. If you are selling a small business, you need to tell your broker about how much money you want to sell your business for so that they can find a suitable buyer.
To sum it up, brokers play a major role in the buying and selling of businesses. In order to make sure that you are in the same wave length as your broker, you need to make sure to keep open communication lines between the two of you.