Many buyers and sellers of businesses will use a business broker to assist with the business-for-sale transaction, and there are many good reasons why that’s the case. In simple terms, business brokers act as middlemen between business buyers and sellers. But they offer much more than that. If you are buying a business or selling a business, it helps to understand the role of business brokers in the process.

Advantages

Assistance in Valuing a Business

Business brokers have extensive knowledge of what businesses are worth and can usually derive a business value that is fairly accurate. Without a business broker, it is tough for sellers to accurately place a realistic evaluation on their business.

Help in Presenting the Business

Business brokers are adept at packaging up a business to show it in its best light. Without a business broker, a seller may not be able to market their business in a way that is attractive to buyers.

Aid in Attracting Buyers

Business brokers know how to attract buyers. In many cases, they have a database of buyers and send out business-for-sale alerts to their database whenever they have a new business listing.

Confidentiality

Business brokers work in a confidential manner, keeping the sale of the business in confidence so that competitors, employees, suppliers and others are not informed that the business is for sale.

Experience in Evaluating Buyer Intent

Business brokers are able to quickly ascertain whether a potential business buyer is serious or just kicking the tires.

Service as an Intermediary

Buyers and sellers generally don’t trust each other. The business broker can serve as a middleman to interpret communications and lead the buyer and seller towards compromises whenever possible.

Expertise in Business-for-Sale Transactions

Finally, the business broker knows all the minutiae required to close a business sale transaction. Typically, a buyer and seller may not understand all the nuances of getting the deal to closure, so it’s good to have an experienced business broker involved who can facilitate the process.

Michael Monnot

941.518.7138
Mike@InfinityBusinessBrokers.com