When you enter the business market, you will come across a group of professionals called business brokers.
Who are they and what is their role on the buyer’s side of a business sale?
Business brokers represent the transaction, and it is their job to list and sell existing businesses. The broker typically works on commission, and that commission is typically paid by the seller.
While it might seem at first like only a business seller needs a broker – if you are on the buyer side of these transactions, then your own broker can be an invaluable resource.
A business broker can help you with every part of the business buying process. Buying a business can be a complicated and patience-testing endeavor. Having a professional to help you navigate this process will help you reach your ultimate goal of buying business.
- A good business broker will help you with deciding what kind of business would be right for you based on your goals and experience, and then help you find that business in the market. Using a broker will give you access to more listings than you would be able to find on your own, and may also give you access to businesses that are not yet on the open market.
- A broker is a great buffer between you and the seller’s side of negotiations. In almost every case, the buyer and seller of a business will have to work together during a training period after the close of the sale. The more amicable you can keep your relationship the better that training period will be. The best way to keep things amicable between the two parties is to use an intermediary during the transaction process. Your own intermediary will be best for getting across the things that are important to you.
- Having you own broker means you have someone who knows what your goals are, is familiar with what you are looking for in a business, and is concerned for your end of the deal. If you go into a deal where the seller’s broker is unknown to you, but they are going to represent both sides of the negotiations, can you really be certain that you will be getting a deal that works for you?
- Buying a business means a lot of paperwork – like leases, licensing, and contracts. Having a broker to help you will ensure that you are getting all of the information you need and all of the proper paperwork handled.
The moral of the story is that you need your own business broker if you want to have a successful business buying experience. They will be invaluable in making your journey to business ownership a successful one.
Are you a business buyer who has questions about what a business broker can do for you? Please leave us a comment or question and we will be happy to assist you with your business buying questions.