Business Brokers: Who They Are, What They Do and Why You Should Consider Using One

Selling a business can be a stressful experience. Much like selling a house, this has been a large investment of not only your money but time and hard work too. There are many reasons you may decide to sell your business but whatever the reason, understanding how the process will work, and having an advocate on your side can move the process along more smoothly and reduce stress.

Who are brokers?

Any entrepreneur will tell you, their business is their baby. They worked hard to build a successful firm, coffeehouse or restaurant but the time does come to move onto different ventures. So, how do you do that? Business brokers can be the bridge that moves a business from one owner to the next. A business broker works as an intermediary between you, the seller, and potential buyer.

What do brokers do?

Brokers are usually involved in the process from day one until closing, ensuring a smooth process for all parties involved. Before the sales process even begins a broker can determine the most reasonable selling price and create a document meant to outline the business to potential buyers and gain interest.

Through various connections a broker can then identify qualified buyers and work with them, and the seller, to find the right deal on which to sell the business.

While brokers work to screen potential buyer they also work directly with attorneys and landlords to transition the business into new ownership in the best way possible for all parties. A business broker will help to facilitate a due diligence investigation including financial, production and management audits among others.

Much like a real estate agent, business brokers are paid on commission when the deal has been closed. Typically this ranges from 5% – 13%.

What is a franchise broker?

A franchise broker is a business broker that works for a group of franchisors directly. This person is tasked with finding new franchisees to enter the organization. During this process franchise brokers will provide information to potential franchise owners about opportunities that could be a good fit. These brokers typically charge a fee to the franchisor for locating prospective franchisees.

Should you use a broker when selling your business?

If you are like most entrepreneurs and spend most of your time thinking about, working at and investing in your small business, you may want to consider using a business broker to facilitate the sale. The streamlined approach business brokers take when selling a business means you can sit back and continue to focus on your business while a broker takes care of the rest. Additionally, brokers can offer financial services to potential buyers that you would be unable to as a small business owner.

Deciding to sell your small business is a big decision. Whether you planned to sell it in the future or the sale is a necessary step, business brokers can help take some of the stress of selling off of your back and make the whole process much more pleasant. By dealing with an experienced broker, you can be assured your business will be sold quickly and to a qualified buyer without much effort on your part. So, if you want to sit back and let your business sell itself, consider a business broker to assist in the process.

Should you have more questions about what a business broker can do for you, visit: https://www.sunbeltnetwork.com/business-broker-directory. A Sunbelt Network business broker can tell you even more about the process and how they can help!