Keeping Your Cool – A Business Seller’s Guide To Letting Go

Posted in Sellers Articles

Published August 16, 2018

Yes, we know. Your business is your baby, your all-encompassing life. But you are ready for the next step – retirement, moving to another industry or selling to focus on something else.

 

In order to move on you have to give someone else the reins. You have to let go of the control you’ve had as the owner of your business – and let’s face it, that’s incredibly tough.

 

Why?

 

You have to be a bit of a control freak to be a successful business owner. It’s the kind of mindset that keeps you driven and keeps your business from falling apart. It’s what gets you out of bed in the morning and working late into the night.

 

When the time comes to walk away, however, that strength of personality becomes a problem. You see, the person who is buying your business has the same entrepreneurial personality you do. They’ll be driven and determined, and you probably aren’t going to like them very much.

 

 

The phrase “too many cooks in the kitchen” comes to mind, right?

 

This clashing of personalities can, and has, derailed perfectly good deals.

 

As a seller you are going to have to get along with along with your replacement from the first conference call all the way through to the end of a probably weeks-long training period. That length of time can be agonizing if you aren’t particularly fond of the buyer – so how do you survive?

 

Keep your eye on the prize.

 

You aren’t selling your business on a whim. You need the money to fund your long-awaited retirement, to fund your next business venture, to help the family member you’re leaving entrepreneurship to care for. It can be tough to keep your emotions in check, but you need to stay focused on the fact that the selling of your business is a purely financial transaction.

 

Remember it’s not your business anymore.

 

A new owner is absolutely going to make changes – it’s inevitable. The sooner you come to grips with that fact the better, because they might start making those changes right in front of you before the training period is even complete. Just remember that you wouldn’t want someone telling you how to run your business, so don’t be the person who does that to the buyer.

 

Remember that just because you don’t like them doesn’t mean they won’t be a good business owner.

 

No two successful entrepreneurs are exactly the same – so the style, values and qualities of the new owner are probably going to be vastly different than your own. Your general dislike of a buyer because they were a complete pain during negotiations or because you hate the way they present themselves doesn’t mean they aren’t going to be able to continue the legacy of the business you built.

 

Don’t derail your deal. If you aren’t fond of the person who is buying your business, it’s perfectly acceptable for you to feel that way. You only need to interact with them until the training period is complete – then it’s on to the next phase of your life with the proceeds of your sale. Take a deep breath, you can get there.

 

Are you thinking about selling your business but are worried about having to hand over the keys? Have you had a horrible buyer experience you’d like to share? Please leave any comments or questions, we’d 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

Posted in Business Broker Why & How, Buyers Articles, Sellers Articles

Published August 13, 2018

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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Buying Or Selling A Business? Don’t Underestimate Training

Posted in Become a Business Owner, Business Broker Why & How, Buyers Articles, Sellers Articles

Published July 2, 2018

Have you thought about what happens after the keys change hands and the buyer and seller walk away from the closing table?

 

The transaction process isn’t over yet – now the training period begins.

 

When a business is sold, part of the purchase contract will typically cover a training period of some sort where the seller will stay on with the business until the buyer can be sufficiently trained to take over the helm. This is an all-to-important part of the business transaction process, so it is in everyone’s best interest to keep the training period productive and amicable.

 

The best way to start the training period off right is to keep the negotiations during the sale process as friendly as possible. Both parties can do this by always using the business brokers involved as intermediaries. It might seem inefficient to always send questions or comments through a third party, but what starts as an innocent phone call to the other side can quickly devolve into a deal-killing fight. Keeping things friendly for the time period before your are stuck working together will make the start of training much easier.

 

If you are the buyer in the situation, it may be tempting to walk in on day one and completely change everything to your liking. This is a huge mistake for two reasons.

 

One, you shouldn’t make any changes to a functioning and profitable business until you know everything there is to know about the business. Then, and only then, will you know what parts of the business are making it profitable and successful and what aspects can be changed without causing any unforeseen damage down the line.

 

The second reason your should hold off on any changes is for the seller’s sake. The seller has a wealth of practical knowledge about the business you just bought, and it is absolutely in your best interest to get absolutely all of that knowledge before the training period is over. By coming in and changing everything, you are essentially telling the seller you don’t think anything they’ve done is worth learning about – a move so insulting that you will probably have an incredibly hard time getting any of that precious practical knowledge. Try to remember that this business was a huge part of the seller’s life, so treat them with a bit of compassion and wait until they are officially gone before you implement any big changes.

 

If you are the seller in the transaction, the training period can be difficult for a number of reasons. First, once you’ve left the closing table and the keys have changed hands, it can be very tempting to mentally check-out. This is a very bad idea, especially if your deal has seller financing involved (which many deals do). If you check-out and can’t properly train the new owner, the their chances of success (and you seeing the rest of your money) are probably not very good.

 

Another training pitfall for sellers is getting offended when the new owner wants to make changes. It can be extremely difficult to keep your emotions in check, but you must remember that this business no longer belongs to you, so the new owner can do what they please. Do your best to complete the training period amicably so that your business can carry on successfully without you.

 

Whether you are the buyer or the seller, it is critically important for the survival of the business in the long term that the training period happens – so do your best to work together.

 

Have you bought a business and the training period wasn’t what it needed to be for you to successfully take over? Are you selling your business and you have questions about what the typical training period will be like? Please feel free to share your experiences or leave us questions here.

 

 

 

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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A Lesson From Shark Tank: You’d Better Know Your Numbers

Posted in Sellers Articles

Published May 31, 2018

If you’ve seen the show Shark Tank, then you know the typical drill. An entrepreneur knows their concept inside and out, but can’t get an investment from the Sharks because they can’t answer basic financial questions. Guess what? This happens in the small business market too.

 

If you take a step out of your business seller’s mindset and take a look at what buyers see in the market, you might be shocked.

 

Most listings for businesses for sale contain sketchy financial information at best, and if they contain any semblance of numbers at all they typically don’t make sense and don’t jive with the price the sellers are asking.

 

 

Where do these discrepancies come from?

While in a few cases the discrepancies come from good old fashioned dishonesty, for the most part the lack of consensus in numbers occurs because the seller simply doesn’t know. Small business owners are great at what they do, but in some cases they are not great at accounting or organizing their financial information.

We come across business owners more often than we should who can’t answer questions like “which product or service is the most profitable?” or “what is the cost to acquire a new client?”. If you are considering selling at any time in the near future, then you need to make the effort to get a handle on your financials long before you are being asked to justify a price.

What things should I be looking at?

Profitability of Products or Services

Many business owners who haven’t broken down the numbers may just assume that the most expensive item or service that they offer is the most profitable – but this is probably not the case. By tracking your products and services individually and then comparing them to the breakdown of what it costs you to provide that product or service, you may discover that your bread and butter comes from a low price item or service that you sell more than anything else. If not just for selling your business, this breakdown will also be immensely helpful when deciding where to put your marketing efforts.

Expenses

Small business owners are famous for paying for expenses out of pocket and never writing it down, or for jamming receipts for expenses in a box under the desk and never looking at them again. When selling your business, you may even think that disguising some of your expenses will make the business look more appealing and more profitable to buyers. This isn’t the case. First of all, there are a few expenses that will get added back before you set a listing price. Second, a business with very low expenses will look suspect to a discerning buyer. Really nailing down your expenses will not only help with selling your business, it will likely allow you to see where your money is going and give you an opportunity to streamline those expenses.





Don’t be a Shark Tank cautionary tale. If you are looking to sell, you need to get your financial ducks in a row, if not for buyers but for your own use to strengthen your numbers, focus your marketing efforts and streamline your expenses. Having a good handle on where your business is and where it needs to be will be instrumental in the negotiation process of your business sale. Strong and organized documentation of all of your financial information will also be very helpful in attracting buyers who are accustomed to the sketchy financials that are typical in the business scene.

 

Are you thinking about selling but are guilty of shoving receipts in a box? Do you have absolutely no clue what it costs you to aquire a new client and want help getting your ducks in a row before listing your business? Please feel free to leave questions or comments here!

 

 

 

Michael Monnot

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

 

 

 

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The End Of 2017 And 2018 Ahead – BizBuySell’s 4th Quarter 2017 Insight Report

Posted in Buyers Articles, Sellers Articles

Published May 14, 2018

BizBuySell’s 4th Quarter 2017 Insight Report shows record highs in the business marketplace, with small business transactions up 27% over the previously record-breaking 2016 numbers. The market has been steadily growing since the recovery for small businesses began in 2013, but 2017 marks a large jump in the number of businesses changing hands.

 

 

Why the big jump?

 

To put it simply, money. Small business revenues are up in most industries, with the economy at large continuing to grow. More businesses are coming on the market, with baby boomer owners choosing to retire and cash out of their businesses while the selling is good. More buyers are also taking the plunge into entrepreneurship with lending options that dried up in the wake of the 2008 recession slowly coming back to life. Added together, today’s market is a boon for business sellers, with many businesses selling for more than they would have two or three years ago – a whopping 14% more.

 

It’s also a good time for business buyers. They might be paying a premium for businesses, but the businesses they are getting are typically in very good financial shape. The same could not be said post-2008 as the glut of faltering businesses on the market meant you could get a good deal – but you had your work cut out for you.

 

Will the good times continue?

 

In the short term, probably. The last quarter of 2017 showed continued growth, with 23% more closed transactions and a 12% increase in median sales price over the same quarter of 2016. Levels that strong will likely continue well into 2018, but those who survived the meltdown of 2008 are beginning to fear another bubble.

 

The smart move?

 

If you own a business and were planning on selling in the foreseeable future, now is the time. The market may continue to climb or we may be quickly approaching the peak. There are buyers with money and your business is in the black, so the safest bet is to sell while the selling is good. This is also true if you were considering selling so you could buy a different business. The businesses on the market today are healthy, so a serial entrepreneur would be smart to take the large profit from a sale today and invest in a new opportunity now. The same is true for first time buyers – businesses are healthy and are a great buy.

 

Want to know what the market looks like for your industry in particular? Do you have questions about when you should sell? Are you thinking about buying a business and want to know what’s currently available? Contact us today.

 

 

 

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 Business Sellers Can Learn From Facebook’s Problems

Posted in Sellers Articles

Published May 10, 2018

Mark Zuckerberg has had a rough couple of weeks. The lack of trust in his business practices landed him in the hot seat before Congress, and that’s never a good place to be.

 

While the leader of a gargantuan company like Facebook might not have much in common with a small business owner who is looking to sell – there is a major lesson that can be learned from the recent Facebook debacle that can help a seller get to a closing table successfully.

 

 

The major lesson? Trust and honesty are key.

 

A business buyer is going to write you a very big check, and for that check they are expecting to get exactly what you told them they were buying.

 

All small businesses are complex, and as such those businesses have issues – big and small. There is never a perfect business, but it certainly would be easy to sell if it was – so many sellers make the mistake of trying to create an illusion that their business is perfect.

 

We get it, issues feel like failures and might decrease the amount of money a buyer is willing to give you. Hiding flaws, however, is a big mistake for a couple of reasons. First, if you had been honest and upfront with issues, buyers may have accepted those issues as part of the deal. If the issues come out later, then you’ve lost the trust of those buyers – and your chances of making it to closing will be slim to none.

 

Think you can hide those skeletons in the closet? Think again. A major part of any small business transaction is due diligence, where a buyer gets to go through every aspect of your business with a fine toothed comb. If there’s a problem, they’re going to find it, so it’s a far better strategy to be open and upfront. Maintaining trust in a business transaction is key simply because it’s a complicated process with a lot of money changing hands.

 

The same goes for things you might be slightly embarrassed about and so you gloss over them or don’t mention them in discussions and negotiations. You need to clearly communicate what your business is, how it makes it’s money, how it works day-to-day and what any problems might be. Omitting information or choosing to make light of things a buyer really needs to know is both unethical and a deal killer.

 

Transparency is crucial to your ability to sell. Trying to hide skeletons or not clearly communicating the aspects of your business a future owner needs to know will surely kill your deal – so play it smarter than Facebook and keep your buyer’s trust. 

 

Are you considering selling your business, but are worried about the skeletons in the closet? Would you like to know what types of issues buyers are usually willing to overlook? Please feel free to leave any questions or comments here.

 

 

 

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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Selling Your Business? Get With The Times And Get Online

Posted in Sellers Articles

Published May 3, 2018

Getting your business ready to sell? You’ve probably been busy assembling your financial records, fixing broken equipment and the like – but have you considered the virtual presence of your business?

 

 

Today’s consumers spend more and more time online, and business buyers are no different. They will want to see that your business is embracing the digital age and is primed for growth in the digital marketplace – so is it?

 

If you’ve got no online presence to speak of or all you’ve got is a poorly maintained business Facebook page – you need to act now.

 

Any business on the market should have a decent website, and a quick and simple website is fairly easy to do. Services like Squarespace and Wix let you pick an already well-designed template, buy a domain name, insert your own information – and poof, your business is part of the digital age.

 

It doesn’t need to be complex. The contact information for your business, the location and the hours. A blog where you add updates about the products or services you offer. Menus, lists of products or services offered and their prices. It really is that simple.

 

Is having a website really that important? Absolutely, yes it is.

 

When a business buyer looks at a business with no online presence they are going to wonder what else the current owner has let slide. If you haven’t even bothered to tap into the digital marketplace then you haven’t been utilizing every tool at your disposal to help your business grow.

 

Another digital marketing avenue you should consider is reviews. Anyone considering buying your business is likely going to look you up on review sites, so ask your customers to post reviews about you. Negative reviews should be taken as constructive criticism – no matter how crazy they seem – and you should respond to negative reviews in a calm, positive manner to ask the unhappy reviewer what you could do to fix their issue. This is a good idea on two fronts. One, it will show anyone reading the bad review that you care and tried to remedy the situation and two – you might be able to turn that negative review into a positive one.

 

If you are selling your business, embrace the digital age. It will show potential buyers that you care about the future and growth of your business and that you have taken the steps to market your business in both the physical and online world.

 

Are you thinking about selling your business and don’t currently have a website? Would you like to know how to improve your online reviews? Please 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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Own It Forever Or Sell Tomorrow – How Smart Business Owners Get Ahead

Posted in Sellers Articles

Published April 26, 2018

 

If you’ve considered selling your business sometime in the near future it can be tempting to get into a two-weeks-notice frame of mind. Remember when you worked for someone else and turned in your notice? You mentally checked out then and there, right?

 

Here’s the thing – if you want to get the best return on the investment of time, energy and capital you’ve put into your business over the years you need to act like you are going to own your business forever and like you are going to sell tomorrow.

 

I’m not going to own my business forever, that’s impossible.

 

Sure, but if you start every day as a business owner with the mindset that you will always be the owner you will probably make decisions about your business with an eye on long term goals and future growth. You’ll focus on marketing campaigns meant to bring in new customers. You’ll make improvements in your equipment that will improve customer experiences. You’ll make sure the people you hire are there for the long term and are both qualified and willing to learn to do things the way they need to be done. What does this eye on the long term lead to? An improved bottom line. An improved bottom line that will be very appealing to buyers when the time does come to sell and a bottom line that will directly benefit you as an owner while you remain in charge. A win-win.

 

I’m not ready to sell tomorrow, so why would I act like I am?

 

Putting yourself in the “I’m going to sell tomorrow” mentality will do a couple of things for you and your business. It will force you to make repairs and conduct regular maintenance and cleaning – things that keep your customer base happy. It will force you to keep your financial records in order – which will make your accounting easier as well as make your records easy to read for buyers down the road. It will also force you to keep an eye on potential for growth – both to improve your bottom line now for your own benefit as well as creating a selling point for potential buyers.

 

You want to get the best return on everything you’ve put into your business, so keep the two-week-brain on hold. Prepare your business like you’ll be there forever and like you’re selling tomorrow.

 

Are you considering selling your business because you’re totally burned out? Would you like to know more about how you can maximize the return on your business investment? Ask us! Leave 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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Selling Your Business? A Flexible Seller Is A Successful Seller

Posted in Sellers Articles

Published April 19, 2018

Selling your business is tough. It’s complicated, it’s stressful – and you have to deal with business buyers who want everything now and to pay you as little as possible. Sometimes it’s not fun.

 

One part of selling your business that you may not have considered? Flexibility.

 

What do we mean by that?

 

 

When you are the owner of a business, you are used to running the show and having control over the day-to-day. When you sell your business, you have to let other people – like buyers and brokers – into your realm. It can be frustrating, but by having a flexible mentality about the selling process you can get yourself to a closing table.

 

What do you need to be flexible about?

 

You are going to have to be flexible about conference call times, meetings and site visits. Site visits particular, because to maintain confidentiality you will need to show your business either before or after business hours when your staff isn’t around.

 

You are going to need to be flexible on your selling price and on the terms within the purchase contract. Neither side is going to get everything they want, so a flexible attitude in regards to the negotiation process will help you immensely. Your listing price shouldn’t be your rock bottom number, so you should expect initial offers to be lower – in many cases much lower. Just look at any offer, no matter how low, as a jumping off point for negotiations.

 

You need to be flexible with the due diligence process, which occurs after you accept an initial purchase offer. During due diligence the buyer will be requesting information, lots of information. You will need to produce your tax returns, financial documentation, bank statements, contracts, leases, payroll records – the list goes on. It can be difficult at times to deal with what feels like constant requests and endless lists of questions you feel like you’ve already answered. Patience is key in this part of the process. Try to see due diligence through a buyer’s eyes. They are trying to turn over every stone because they are making a very big purchase and don’t want to be surprised.

 

You need to be flexible about closing dates and training periods. Any buyer who plans on success will need the previous owner of the business to show them the ropes. Most training periods are two weeks, but it can vary from transaction to transaction and you may end up consulting with the buyer of your business for longer than you think is necessary. It can also be difficult during the training period because the business is no longer yours and decisions are no longer yours to make. Just remember that you are providing for the legacy of your business and that the training period is only temporary.

 

The key to the successful sale of your business isn’t really your numbers or the pictures your broker takes – it’s you. A flexible and patient attitude will get you to a closing table faster than anything else, so mentally prepare yourself for the journey ahead.

 

Are you thinking about selling your business and want to know more about the process? Would you like to know more about training periods for buyers? Ask us! Leave 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

Posted in Buyers Articles, Sellers Articles

Published March 26, 2018

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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Michael Monnot

941.518.7138
Mike@InfinityBusinessBrokers.com

9040 Town Center Parkway
Lakewood Ranch, FL 34202



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