3 Reasons Why A Business Buyer Needs Their Own Broker

In the world of business transactions, it is the seller’s side that pays the commission of the broker (or brokers) involved – so why would a buyer need their own relationship with a broker since they don’t have a business to list?

 

There are many reasons why it’s a good idea to have a relationship with your own broker, here’s a few:

 

Someone Who Actually Knows You

 

Entering a transaction with only the seller’s broker (who you haven’t spent any time talking to other than signing an NDA on a specific listing) means that the broker probably knows little to nothing about your goals, your situation and what you are hoping to get out of business ownership. If a broker doesn’t know any of these things about you, how can they properly advise you on a business? The short answer is they can’t. You need to have a relationship with a broker before you are sitting at a negotiating table, hopefully long before. A good broker is going to ask you questions, lots of them. They should find out how much capital you have available, what your past work and educational experiences have been, your goals for business ownership, what you hope your work day will look like, what your dream business would be, how long you hope to own any business you purchase, what industries you are qualified to work in, what industries interest you – just to name a few. Buying a business is a huge decision, and having an expert involved who already knows all of these details about you as a buyer will be instrumental in successfully finding you the right business to buy.

 

A Buffer And A Negotiator

 

You are about to write a very big check to a complete stranger so you can buy their business – a business that has been their life and probably their baby for some time. Both sides will have serious emotional and financial attachments (you to your money and the seller to the business) so it can be tough to get through negotiations without one side or both ending up offended (and killing the deal). A business brokers acts as a buffer between the two sides, allowing forward progress while keeping the two sides away from each other. This role as a buffer during negotiations can be pivotal to the success or failure of a transaction.

 

Help For A New Owner

If you’ve never owned a business before (and even if you have) the lease, property managers, laws, red tape, licensing, permitting, etc. can be daunting and overwhelming if you don’t have help. Having your own broker ensures that you both know what needs to be done and have assistance with making it happen.

 

What if you already know the broker involved? Can you make a transaction happen with only one broker?

 

Yes. If your broker has a listing that fits your goals, then it can definitely be appropriate to only have one intermediary. The key to success in this situation is the broker needs to know both you and the seller.

 

If you are on the road to business ownership, don’t try to go it alone. Having an experienced and knowledgeable broker who knows you can make the transaction process go more smoothly and will greatly improve your chances of finding the right business for you.

 

Are you new in the market and are wondering what you should look for in a buyer’s broker? Have you already tried to shop the market on your own and have a story to share with other prospective buyers? Please feel free to leave comments or questions below, we would be happy to help.

 

 

 

Michael Monnot

941.518.7138
Mike@InfinityBusinessBrokers.com
12995 South Cleveland Avenue, Suite 249
Fort Myers, FL 33907

www.InfinityBusinessBrokers.com

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Keys To Business Transaction Success – Don’t Stalk Your Broker

 

We know that buying a business is a very stressful endeavor. Selling a business isn’t any easier.

 

Guess what? The person at the center of that stressful and difficult situation isn’t always in the land of sunshine and rainbows.  They’re there to keep the transaction on track. That person is a business broker. 

 

A business broker’s day is full of sending and receiving emails, conference calls, travel to and from meetings and the meetings themselves. When they aren’t in direct communication with one of their clients they are putting together listing packages, writing purchase contracts, dealing with bureaucratic licensing issues – they’re very busy people.

 

 

A business broker’s job is to act as a buffer during negotiations and get a transaction to closing. They are there to help sellers get their business ready for market and there to help buyers find a business that fits with their goals. A big part of a business broker’s job is talking to everyone involved – keeping the business transaction on track by making sure everyone is getting what they need when they need it.

 

Your transaction is, obviously, a big deal to you. It’s probably the one major thing you’ll have going on in your life. If you’ve got a good broker your deal will absolutely be a priority – but an important caveat to remember is it won’t be their only priority.

 

If you hired an experienced and qualified business broker, then you probably aren’t (and shouldn’t be) their only client. If you call, text or email your broker, you should expect a response in a timely fashion. Timely, however, does not mean instantaneous. If a broker doesn’t answer the phone during business hours, perhaps they’re in a meeting or on a phone call. An unanswered phone call doesn’t mean you should then call them an additional 30 times in a few hours. A constant barrage of requests for contact be they calls, texts or emails isn’t going to get a quicker response. All this lightly-stalker behavior will do is complicate the day of the broker who’s trying to help you. Call once, and if you don’t hear from your broker in a realistic amount of time send a quick text or email to follow up. That should be enough.

 

A note here. If they aren’t getting back to you at all, where you go days and days without a response – then perhaps you need a different broker.

 

You should also remember that business brokers have lives outside of work just like you do. If you call at 10 at night on a Friday or at 7 in the morning on a Sunday, you probably shouldn’t expect a broker (or anyone for that matter) to immediately return your call.

 

Calling or texting constantly doesn’t help your broker help you through your transaction, all it does is fill up their inbox and make it impossible to get back to everyone in a reasonable amount of time.

 

Calling over and over again isn’t going to get you an answer any quicker, especially if the information you need is coming from the other side of the table. Sometimes your brokers hands are tied if the other side of the transaction isnt being cooperative. Business transactions are big and messy, and can sometimes involve buyers, sellers, buyer’s brokers, seller’s brokers, buyer’s attorneys, seller’s attorneys, CPAs – the list goes on. Having to get a single information request through that string of very busy people can sometimes take a few days. If your broker says they’re on it and they’re waiting for a response, calling them 16 times a day isn’t going to get the information any faster.

 

Keeping realistic expectations in terms of response times from your broker, along with a good dose of patience for all of the parties involved, will help immensely in getting your transaction all the way to closing.

 

Are you looking at businesses to buy and want to know more about how a business broker can help you? Have you thought about selling your business but have questions about the selling process? Please feel free to leave any questions or comments and we would be happy to help.

 

 

 

Michael Monnot

941.518.7138
Mike@InfinityBusinessBrokers.com
12995 South Cleveland Avenue, Suite 249
Fort Myers, FL 33907

www.InfinityBusinessBrokers.com

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Why Your Broker’s Referral Rate Is A BIG Deal

If you are looking at businesses to buy or are thinking about selling the business you own, you should really, really care about referrals.

 

Buying and selling businesses can be a tough and messy thing to do, so there are professionals out there called business brokers who help buyers and sellers reach a closing table.

 

Like any industry, there are business brokers who are fantastic and there are business brokers who are terrible at their job. How can you as a buyer or seller figure out if the broker you are considering working with is at the top of the game? Ask them a very simple question.

 

How much of your business comes from referrals?

 

 

Referrals happen when previous clients or industry professionals like accountants, real estate agents or attorneys find out that someone is looking to buy or sell a business. They refer that person to a business broker they have previously worked with or know on a professional basis.

 

No one is going to give someone the name of a business broker they hate, so if you are working with a broker who gets the bulk of their business from referrals – it can tell you as a potential client a great deal about how this person conducts themselves in a business transaction.

 

We, for instance, get a great deal of our business through the referral process. Like 80% or more. Does this mean that we’ve made every client absolutely happy? Nope. But it does mean that we work very hard to get our clients to their goal. We do more than is expected and our past clients see that – especially when the other broker in the transaction does little to nothing to help the deal along. The difference between what we do and what some other brokers don’t do is the reason people send their friends our way.

 

The same goes for the professionals we work with throughout the transaction process, like attorneys and accountants. They’ve typically worked with other brokers who make big mistakes and expect everyone else to do the work for them – and after working with us they send any potential business our way instead.  

 

If you want the best help on your journey to buy or sell a business, your best bet is to ask any broker about their referral rate. The good ones will be happy to tell you that they get a good chunk of their business from past clients and business associates. The bad ones will probably change the subject – and that’s a big red flag. 

 

Would you like to know more about what business brokers can do to help buyers and sellers in a business transaction? Do you have questions about our referral rate? Ask us! Feel free to leave any questions or comments here and we would be happy to help.

 

 

 

Michael Monnot

941.518.7138
Mike@InfinityBusinessBrokers.com
12995 South Cleveland Avenue, Suite 249
Fort Myers, FL 33907

www.InfinityBusinessBrokers.com

 

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Buying A Business? 3 Ways To Spot A Good Broker

 

Buying a business is a daunting task, and just like you probably wouldn’t go to court without a lawyer or buy a house without a real estate agent – a smart business buyer needs a good business broker to help them navigate the business buying process.

 

What makes a good broker a good broker?

 

Adherence To Confidentiality

 

When you first inquire about a particular business, you shouldn’t immediately get a seemingly automatic reply with the NDA (non-disclosure agreement) to sign. If you are able to gain access to confidential business information about a business that is for sale without a broker asking you anything about yourself – that broker is not doing their job. One of the most important functions of a business broker is to keep the confidentiality of businesses that are for sale. A breach in confidentiality can be disastrous for a business, and a big part of maintaining confidentiality is determining if the buyers who are inquiring about this business are even buyers at all. You might be a competitor trying to find out if you can steal the best sales staff. You might be someone who can’t possibly afford to buy this business and therefore have no reason to gain access to confidential information. You might be an employee who is trying to find out what your owner is up to so you can warn your fellow employees about the for-sale status of the place you work.

 

The point here is that it can be a bit frustrating as a buyer when you aren’t able to get the information you need immediately. It can seem intrusive that a broker wants to have a conversation with you about your finances and your work experience – but these practices are what you want to see. This diligence where confidentiality is concerned is what separates the good brokers from the bad.

 

Availability And Timely Responses

 

A good broker is busy. They are meeting with sellers, they are assembling comprehensive marketing packages for buyers, they are taking pictures and shooting videos, they are having conversations with other buyers, they are working out commercial leases with landlords and property managers – the list goes on and on. Many new buyers get frustrated when a call (or ten calls in five minutes) goes unanswered. Understand that if your broker is good at their job they won’t always be available. You aren’t their only client – and you shouldn’t be.

 

A good broker will find the time to address your concerns, answer your questions and negotiate with the other parties on your behalf. Just realize that it might not always be an immediate response and that any delay means that your broker is doing their job. 

 

Negotiation And Tied Hands

 

Buying a business is a long and often very frustrating process. Why? There are many personalities and the inherently complicated nature of a small business to contend with. In a transaction there can be buyers, one or more sellers, the buyer’s broker, the seller’s broker, the buyer’s attorney, the seller’s attorney, the transaction attorney, one or more business accountants, the property owner, the property manager and maybe even a few key employees. If you’ve ever tried to get four people to agree on where they should go for lunch, you can guess that trying to get all of the parties involved in a business transaction to agree on a complicated purchase agreement can be a monumental task. Within that task your broker acts as a negotiator and as a buffer between all those involved. This means that when you ask for something from the other side, your broker’s hands are tied if the other side is dragging their feet or refusing to cooperate.

 

The point here is the most successful business buyers are also the most patient, and they also understand how complex their transaction can be.

 

Managing expectations is an important part of the successful purchase of a business – so find a broker who wants to have in depth conversations about your goals for business ownership, your experience and the capital you have available to invest. Look for someone who answers your calls and emails in a timely fashion. Once you have a good broker understand that there are a great many things about a business transaction that they can’t control. Be patient and realistic – it’s the best way to set yourself up for the purchase of the right business for you.

 

Do you have more questions about the business buying process? Would you like to know what information is required for the NDA and why we require that information? Please leave any questions or comments here and we would be happy to help.

 

 

 

Michael Monnot

941.518.7138
Mike@InfinityBusinessBrokers.com
12995 South Cleveland Avenue, Suite 249
Fort Myers, FL 33907

www.InfinityBusinessBrokers.com

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Buying A Business? 3 Ways To Find A Great Broker

If you are considering buying a business, then you’ve probably started looking for a business broker to help you. If you haven’t, you should, as the business transaction process can be dauntingly complex and rarely makes it to a successful closing without some qualified help.

 

If you are broker shopping, you will quickly discover that there are a lot of options.

 

How do you choose the right professional to help you?

 

First, avoid any “part time” brokers. Many, many business professionals like real estate agents, attorneys, accountants – we’ve even come across doctors – “moonlight” as business brokers. Their attempts in our industry are on a part time “dabbling” basis, and as such they rarely know what they are doing. You wouldn’t come to a business broker if someone was threatening you with a lawsuit, so why would you use an attorney to navigate a business deal? Look for business brokers who are only that – full time brokers.

 

Secondly, you want to avoid business brokers who have “proprietary methods”. Some brokers use their so-called proprietary methods as a selling point, but from an industry standpoint there really isn’t anything about what a broker does that could ever really be proprietary. Any broker who gives you the “I am the only one with the special sauce” routine is trying too hard to impress you instead of focusing on what’s important – finding you the right business.

 

Third, you want to avoid business brokers who spend a small fortune on advertising. Brokers who are spending money on multiple television ads, massive full-color mailers and dozens of radio spots are again spending too much of their time focusing on the wrong aspect of their business.

 

What should you use to find a great broker? Referrals. If you find a business broker who gets the vast majority of their business from referrals, then you’ll be in good hands. Referrals come from past buyers, sellers, other industry professionals like attorneys and accountants – and these referrals amount to a great review of that broker’s previous work. Those past clients and professionals trust this broker enough to send the people they know their way. If you are talking to a broker, ask them how much of their business is referral based. A broker with a ton of referrals will be someone who can get the job done and find you a great business.

 

Would you like to know more about how to decide on a business broker? Would you like to know about our referral rate here at IBB? Ask us! Please feel free to leave any questions or comments here and we would be happy to help.

 

 

 

Michael Monnot

941.518.7138
Mike@InfinityBusinessBrokers.com
12995 South Cleveland Avenue, Suite 249
Fort Myers, FL 33907

www.InfinityBusinessBrokers.com

 

 

 

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Buying Or Selling A Business? The Right Help Makes All The Difference

Looking for a business to buy or thinking about selling the business you currently own? Either side of a business transaction is a tough and complicated road – and definitely one you shouldn’t travel alone.

 

 

So, who can help me with business transactions? Business brokers can.

 

A business broker is a professional who helps people buy and sell businesses. They are well versed in the transaction process, and know all of the potential pitfalls so you can avoid them.

 

Few people outside of the business transaction world truly understand what business brokers are and what they do – so here are the answers to some common questions about our industry:

 

What do business brokers do?

If you are a buyer a broker can help you search for businesses to buy, help you narrow down your choices, help you put together an offer, help you negotiate a purchase contract, help you with any necessary licensing and permitting and help you work with the seller as they show you the ropes.

 

If you are a seller a broker can help you prepare your business for sale, help you come up with an appropriate listing price, confidentially market your business, vet potential buyers and get non-disclosure agreements signed, show your business to potential buyers, help with negotiating a purchase contract, help you with the closing process and help you find your next business venture after you sell.

 

How are business brokers licensed?

Business brokers are typically licensed by their state’s real estate division, but what they do isn’t real estate. To put it simply state licensing divisions can’t possibly have a separate license for every applicable industry, so in some cases a profession is lumped in with an industry that is similar. That is the case with business brokers. They typically hold a real estate license or a real estate broker’s license.

 

Who is, and isn’t, a business broker?

The buying a selling of businesses and the buying and selling of property or homes are two completely different animals. Property and homes are sold by broadcasting the availability of the property/home to everyone, everywhere. Businesses, on the other hand, need to be sold confidentially – so the approach is completely different. Listings for businesses are extremely vague, and only after the signing of non-disclosure agreements will the name and location of a business for sale be divulged. It is this vastly different approach of sales techniques that makes it critical for business buyers and sellers to work with experienced and qualified business brokers and not real estate agents trying their hand at selling businesses.

 

Many professionals outside of the business transaction industry make ill-fated attempts to dabble in the buying and selling of businesses on the side. While unqualified real estate agents are the typical offenders – we’ve seen dentists, lawyers, accountants and the like they their hand and fail. The business transaction process is complicated, and to be successful you need to know what you are doing. Part-time business brokers aren’t business brokers, so avoid them. If your good friend or brother-in-law is a real estate agent who thinks they can successfully help you buy or sell a business, they can – by referring you to the appropriate professional. All your real estate agent needs to do is refer you to a qualified business broker, and when your transaction closes your real estate agent gets a referral fee for doing nothing more than making a phone call – and you get the right help.

 

Who does a business broker represent?

While your business broker is your advocate during the transaction process, they don’t technically represent one side or the other. They are transaction brokers, and therefore represent the transaction itself. For this reason it is possible in many states for a business broker to work for both the buyer and seller’s side.

 

How does a business broker get paid?

Business brokers make their money by earning a commission when a transaction closes, paid for by the seller’s proceeds of a sale. This is why buyers who spend years searching for businesses without ever taking any serious steps toward buying one (like making an offer) might have trouble getting an experienced broker’s attention. Serious buyers and serious sellers are easily distinguished from those who are just kicking tires.

 

How can I find a good business broker?

Finding a good broker can be a bit of a challenge, but there are some obvious signs that can distinguish the good from the bad. Great brokers get the vast majority of their business from referrals – from past buyers and sellers who were impressed with their work, from colleagues in other industries who’ve referred friends and family to great success – so ask a potential broker how much of their business comes from this good-review-based source. Good brokers also respond to calls and emails in a realistically timely fashion, have lots of connections within the industry and have some practical experience under their belt.

 

The message here is the road to buying or selling a business is best traveled with the right help – so finding an experienced and qualified business broker should be your first step!

 

Are you thinking about buying or selling a business and want to know more about what business brokers do? Do you have more questions about the transaction process? Ask us! Feel free to leave comments or questions and we would be happy to help!

 

 

 

Michael Monnot

941.518.7138
Mike@InfinityBusinessBrokers.com
12995 South Cleveland Avenue, Suite 249
Fort Myers, FL 33907

www.InfinityBusinessBrokers.com

 

 

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Experience Counts – Why You Need A Veteran Of The Transaction Process

You’ve just entered the business market with the intent of buying yourself a small business, and you are shopping around for a business broker to help you.

 

There are many factors that separate the good brokers from the bad – but one of the big ones is experience.

 

Rookie brokers make lots of mistakes, and if you’ve hitched yourself to their wagon for your transaction then you get to live those mistakes right along with them.

 

As experienced brokers, it can be very frustrating to try and work with these newbies, but it becomes increasingly difficult when they are trying their hand at the business alone and without any guidance – or if they have an experienced broker whom they work for who has given little to no training of any kind.

 

One of the major ways this lack of experience shows through? Too many showings.

 

What do we mean by too many showings?

 

If you’ve ever bought a house, you know that going to see a plethora of homes is part of the game, especially in a fast-moving market where a house has multiple offers the first day it lists. This is not, however, how business sales works – so newbie business brokers, especially those fresh out of the real estate industry, will sometimes try to play the same game by attempting to line up a litany of businesses for their clients to see. It doesn’t work.

 

First of all, when you are buying a business, you are buying an existing business – one that is open and running with staff and customers. The importance of confidentiality means that the staff and customers can’t know the business is for sale. Therefore, a business seller can’t have a parade of semi-curious buyers waltzing through the front door on a regular basis – it would make confidentiality impossible.

 

If done properly, the process to go see/tour a business is much more extensive:

 

It starts by having a conversation with your business broker about what you are looking for in a business and what your goals are. You will also talk about how much capital you have to invest in a business, and your broker will then take that information and find you a number of listings to look at that will be within your budget and meet your entrepreneurial goals. Out of that initial batch of potential businesses, you will typically be asked to narrow down the choices to just a few – think two or three – that peak your interest. You will then sign non-disclosure agreements for those listings in order to receive the marketing package, complete with the name and physical location of the business. After thoroughly reviewing the marketing materials for your few choices, you will probably prefer one business over the others. Your broker will help you form a list of additional questions you have for the sellers, and you will be given an opportunity to ask those questions during a conference call including the sellers, the brokers involved and you. After all of those steps have passed and you are still very interested in the business, your broker will set up a walk-through of the physical location of the business either before or after business hours when the staff and customers are gone.

 

What you can’t do in this process is decide that you want to spend a few days touring businesses and line up 5, 10 or more “showings” with your broker. No experienced broker worth their salt is going to waste their seller’s time by trying to coordinate a visit when the buyer hasn’t even bothered to narrow down their choices or ask any good questions. It’s just not going to happen. They’re also not going to put the confidentiality of the business at risk by having too many unfamiliar people coming to the business to meet with the seller during business hours as the staff will know something is up.

 

If you ask for this type of multi-tour approach and your broker says “Sure!”, beware that you probably have a rookie on your hands. The experienced brokers on the other side of the table aren’t going to play along, and you will be stuck seeing only the businesses listed by fellow rookie brokers.

 

If you are serious about buying, get yourself an experienced broker and go through the proper steps. You will end up only seeing the businesses that are right for you instead of wasting your own time looking at businesses that don’t fit the bill.

 

Are you a first-time buyer with more questions about the business buying process? Have you had an experience with a rookie broker that you’d like to share? Please feel free to leave comments or questions here and we would be happy to help.

 

 

 

Michael Monnot

941.518.7138
Mike@InfinityBusinessBrokers.com
12995 South Cleveland Avenue, Suite 249
Fort Myers, FL 33907

www.InfinityBusinessBrokers.com

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Buying A Business? Why You Should Stick With One Broker

We’ll start this one by saying as a caveat that if you end up with a dreadful broker who never returns your phone calls, doesn’t show up to scheduled meetings on a regular basis and is all around just bad – by all means, find a new broker.



Caveat aside, many business buyers come to the business-for-sale marketplace and try to play the field, and this never ends up working in their favor.



What do we mean by playing the field? If you’ve emailed 30 brokers in a small local area to request information on potential businesses, then you are doing yourself and your prospects for business ownership a big disservice.



Why?



Your business search needs to be focused in order to be successful, and in order to have a focused business search you need to have a relationship with a good broker. This relationship should start with a conversation about several very important things – things that won’t come across if all you are doing is shooting email requests to everyone in the area.



Your initial conversation with a broker might start out as an inquiry into one specific business, but it shouldn’t stay that way for long. A good broker is going to ask you questions that will let them know your direction in your search and help them narrow your focus to just those businesses that would fit with your goals.



What should a broker be asking you?



They should ask you about what your goals for business ownership are. If what you are hoping to achieve is a very flexible schedule so you can spend more time with your kids, then some businesses are definitely out of the question. If schedule isn’t a priority, but making as much money as possible is – then a very different business would be for you.



They should be asking you about what your passions are. Entrepreneurship is no picnic. It can be an enormous amount of work, so you need to be doing something that you can be driven and passionate about or you will end up miserable.



They should ask you about your experience. If you’ve never worked so much as a single shift in the restaurant industry, then it would be a terrible idea to buy a bar or restaurant. Business ownership is tough, especially if you are brand new to entrepreneurship. You don’t want to add learning an entirely new industry on top of it – you will be setting yourself up for failure.



They should be asking you about your finances. You might think you have enough money to buy a particular business, but the reality of buying is that you need far more money than just enough to cover the listing price. You need enough to write the closing check, enough for the deposits for your utilities and lease, enough to buy new inventory, enough for licensing fees, enough for the first few rounds of payroll – the list goes on. A good broker doesn’t want to set you up for failure, so knowing your financial situation will allow them to find you businesses you can actually afford.



The point here is only by having a relationship with a single broker (who knows these very key things about you and about your business ownership goals) can you have any hope of finding the right business.



Approach you search for businesses by searching for a good broker first – then you can count on that relationship to bring you the businesses you should see.



Have you sent a ton of email requests but haven’t actually had a conversation with a broker yet? Do you want to know more about why a relationship with a good broker is so important for your success in purchasing a business? Ask us! Please feel free to leave any questions or comments, and we would be happy to help.

 

 

 

Michael Monnot

941.518.7138
Mike@InfinityBusinessBrokers.com
12995 South Cleveland Avenue, Suite 249
Fort Myers, FL 33907

www.InfinityBusinessBrokers.com

 

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How Do You Find A Good Business Broker? 2 Questions To Ask

Whether you are a business buyer or a business seller, the best way to navigate the business transaction process is with the help of an experienced and qualified business broker.

 

How can you tell if the broker you’ve been talking to is experienced and qualified? Let’s start by finding out how a person becomes a business broker in the first place.

 

To become a business broker, someone first needs to have an interest in helping people buy and sell businesses. Business brokers come from all kinds of backgrounds – they are former entrepreneurs, former finance professionals, former real estate brokers, etc. The experience of business ownership and a background in finance are obviously helpful, but aren’t necessary.

When a business broker first starts out, they must obtain the same license a real estate agent needs (there is not a special license for just business brokers, so they get lumped into the real estate industry). Once they have this license they need to work as a business broker/agent for someone who is a licensed broker (just like a real estate agent works for a real estate broker) for two years and then they are eligible to become a licensed broker on their own.

 

It is not necessary, however, for a broker to ever get the “broker” license if they continue to work with someone who is already licensed this way. As such, if the business broker you are working with doesn’t have the “broker” license this is not a bad thing. In fact in many instances broker/agents work within business brokerage firms for many years with great success without ever getting a “broker” license.

 

When you first begin speaking with a business broker, you can ask them about what kind of license they hold, but the answer to this question is not as important as you might initially think.

 

Lots of people have a real estate license but never actually sell a house – and, unfortunately, lots of people also try to dabble in the business market. We come across realtors, lawyers and even doctors who try to be business brokers “on the side”.

 

As a buyer or a seller, you want to stay well away from these part time brokers. Buying and selling businesses is a complicated process, and you are going to want someone who actually knows what they are doing helping you through your transaction.

 

You wouldn’t let your family practitioner perform plastic surgery on you – so don’t let a real estate agent or your dentist try to help you buy or sell a business.

 

Now that you know how a person becomes a broker, what are the questions you should be asking to find the right one? There’s two that can tell you a lot:

 

1. How many deals have you closed in the last year?

A broker who regularly closes deals is probably well established and clearly knows what they are doing. They have connections within the industry, they know how to successfully negotiate business transaction contracts and they are able to work with commercial property owners to get their clients a lease.

2. How many clients have referred you to a friend or have used you more than once?

A broker with repeat or referral clientele is someone that others have enjoyed working with. The experience was so positive they would trust that broker with their personal connections. Like a great review of a business, referrals and repeat transactions speak volumes about what your experience with that broker will probably be.

 

The message here? Ask the right questions and you will quickly find out whether the broker you have been speaking to is the right person to help you with your transaction.

 

Are you looking for a business broker and have more questions about how to find the right one? Want to ask us about how many deals we have closed or how many referrals/repeat clients we have? Please feel to leave us a comment or question here and we will be happy to get your questions answered.

 

 

 

 

Michael Monnot

941.518.7138
Mike@InfinityBusinessBrokers.com
12995 South Cleveland Avenue, Suite 249
Fort Myers, FL 33907

www.InfinityBusinessBrokers.com

 

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The Role Of The Transaction Broker And How They Get Deals Done

 

Business sales are inherently complex. There are many aspects of the process of buying or selling a business that can be very different from the buying and selling of anything else. If you have bought or sold a home, for instance, the business sale process will seem very foreign. There is usually more money changing hands, more complex financial issues like the evaluation of the business price based on financial statements and the value of inventory or fixtures, there are usually commercial leases – the list goes on. How does one navigate this complex process?

 

You employ the services of a professional business broker.

 

What is a business broker? They are sometimes also known as a transaction broker, meaning that they represent the deal. This is why it is possible to have one broker for both the buyer and seller side of a transaction. Having only one transaction broker for a deal between a buyer and a seller can be helpful in situations where both parties can trust the broker involved. As they represent only the transaction, having one person as a go-between can make negotiations go more smoothly than it would if there were multiple brokers involved.

 

While it is more common that each side of the deal will have their own broker, both essentially represent their party’s part of the transaction instead of representing the people themselves.

 

Why is this a good thing? When a lot of money is changing hands things can get out of hand very quickly. Business deals are messy. If the deal starts to go south, as most do at some point in the process, the broker is there to protect the deal. This is different from what an attorney might do in the same situation – in that an attorney’s job is to protect their client from any and all risk. If business brokers were employed to do the same thing, prevent any and all risk, it would be impossible to get a deal to closing because all business dealings, business sales included, come with a fair amount of risk.

 

The broker or brokers representing the transaction is what gets deals done.

 

Having someone to keep the deal moving is truly helpful, but you should also be able to trust the broker or brokers involved. Your broker is there to help you navigate this incredibly complex process and to help you either successfully sell or successfully purchase the right business for you. A good broker will go the extra mile for their clients because your eventual success as a business owner or seller leads to your broker’s success within a healthy small business market. 

 

Are you thinking of buying or selling a business and want to know more about the role of a business broker in the process? Please leave us a question or comment here, and we will be happy to answer any questions you might have.

 

 

 

Michael Monnot

941.518.7138
Mike@InfinityBusinessBrokers.com
12995 South Cleveland Avenue, Suite 249
Fort Myers, FL 33907

http://www.InfinityBusinessBrokers.com

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Michael Monnot

941.518.7138
Mike@InfinityBusinessBrokers.com

12995 South Cleveland Avenue, Suite 249
Fort Myers, FL 33907




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