If you’re thinking of buying or selling a business, you may have heard the term “business brokerage” and wondered what it is. Business brokers are professional intermediaries who assist clients in facilitating the sale or purchase of a business.
Some business owners may feel that they can handle the sale of their business on their own. However, most owners quickly realize that the process is much more complicated than simply finding a buyer and negotiating a deal.
If you’ve ever bought or sold a home, then chances are you’ve worked with a real estate agent. You can think of a business broker’s role as being very similar to a real estate agent, only the broker is helping you buy or sell a business, which is a much more complex endeavor.
Read on to learn more about “what is a business brokerage?” and other questions.
What Does a Business Broker Do?
The role of a business broker is to facilitate the sale of a business by acting as an intermediary between the buyer and seller. Business brokers typically work with small to medium-sized businesses.
Brokers can play a very valuable role in the process as they provide guidance, advice, and other resources that you may need to make the transaction happen. When you work with a business broker, they will estimate the value of a business, advertise it, and conduct interviews with potential buyers all while maintaining confidentiality.
Business brokers typically work on a commission basis, which is a percentage of the sale price of the business.
What Are the Benefits of Working With a Business Broker?
These are the benefits of enlisting business brokerage services:
Find the Right Buyer
When it comes time to sell your business, you want to make sure you find the right buyer. The right buyer is not only going to offer you the best price for your business, but they are also going to be a good fit for the company. We can help you find the right buyer by screening potential buyers and finding those that are the best match for your company.
Negotiate the Sale Price
One of the most important benefits of working with NJ business brokers is that we can help you negotiate the sale price of your business. We will have a good understanding of what similar businesses are selling for and can help you get the best possible price for your business.
Managing the Process
Another great reason to use business brokers is that they will manage the sale process. There are various steps in the process and many obstacles to overcome along the way. However, business brokers will solve problems as they come up while managing all the moving parts and keeping the parties involved (seller, buyer, accountants, financial institutions, lawyers, or consultants) moving toward a successful closing.
Get Valuable Advice and Guidance
Lastly, we can give you invaluable guidance when it comes to understanding the market and closing the deal. With years of experience in the industry, we know what works and what doesn’t — and we can help you avoid common mistakes that could cost you dearly.
Who Pays the Business Broker Commission?
A business broker commission or success fee is typically paid by the seller of the business, with the agreement that it will be paid out of the proceeds of the sale. In some cases, a buyer may agree to pay a portion or all of the broker commission in order to secure a particular business opportunity.