Some Resources For Finding a Business Broker

Before we talk about resources for finding a business broker, let us first understand who is a business broker. Business broker resembles very much to the real estate agent. The job of the business broker is to bridge the gap between the buyer of the business and the seller of the business. If you wisely choose the right business broker, you can save a lot of money in the business transactions taking place through him. Here are some resources for finding a business broker for you.

Ask the People Whom You Already Know For Referrals:
Whenever we look for something that is new to us and we are not familiar with it, we try to gather information from the people we already know, and have faith in them that they would not misguide us. Same procedure we can apply when we look for the resources for finding a business broker. Take the advice of your business associates, accountants, lawyer and other associations of the industry to get the names of business brokers. If a reliable person gives the reference of any business broker then there is no harm in considering him for hiring his services.

Another very good resource for finding a business broker is the International Business Brokers Association or IBBA. This is an institute of business brokers working on non-profit basis. There are approximately one thousand three hundred members of this association.

Go Through the Advertisements in Newspapers:
One very good resource for finding a business broker is newspaper. Look for the advertisements under the business opportunities. You should check local, regional and national all types of newspapers for this purpose. You will observe several businesses for sell in these advertisements. Although, these advertisements are intended to attract prospective buyers yet you can check them to find out the names of the people who are managing these deals.

Yellow Pages:
Another resource for finding a business broker is to look in the yellow pages. However, do not get confused with the real estate agents and look specifically for the brokers who have experience in the selling of businesses. Any broker who just lists the name of your business on the multiple listing services is of no use to you. These kinds of brokers do not give required time to make such business deals.

Sign an Agreement After You Have Selected the Business Broker:
After your search for finding a business broker ends and you succeed in finding the right business broker, sign an agreement with him. State clearly in the agreement that what type of marketing strategy the business broker will adopt to sell your business. Do not forget to mention that any such advertisement must not carry the name of your business.

7 Benefits of American Business Brokers

Nobody has to tell you that these are pretty volatile economic times and if you’re contemplating buying or selling a business you are going to be facing some serious challenges. American business brokers have been doing a brisk business over the past two years thanks to a banking collapse and a stock market that no longer appears to be a prudent place to invest. Some businesses have to sell and others have cash that they can’t profitably invest elsewhere so they invest in growth. Business brokers are the professionals in the middle that make it happen for both the buyer and the seller. Here’s a short list of their services.

1. Preparing a business to sell

If you feel it’s time to sell your business a broker can help you put together the best look and then market your business professionally. When you’re selling you should be focusing on what you do best, running the business and making it as attractive as possible, and not be distracted with all the minutiae involved in selling a business. Leave that to the broker.

2. Valuation service

Arriving at a real market value for a business is obviously important to both a buyer and a seller and a professional broker can provide that service. In a sales transaction, the ultimate value of a business is what a buyer is willing to pay. However there are other times when an owner may want a certified value to satisfy estate planning, marital or partnership issues or when facing litigation. Once again the business broker is the pro you can turn to.

3. Closing

As hard and as complicated as it is to market and then negotiate a price, closing can be even more difficult because more people and organizations are involved. A business broker can handle much of the coordination that is required. He or she will have to deal with two sets of attorneys, accountants, possibly two or more banks, government agencies and vendors. This is a critical step and not the time to start learning by on the job training. Let a broker do it.

4. Exit strategy

The time to think about an exit strategy is before you put your business on the market. Discuss with your broker just what you want to do, retire or move on to another opportunity. This will actually have an impact on the method of payout. Many times you can get a more profitable deal if you agree to manage the business for a short time after the sale. There’s also the question of relationships with clients, vendors and employees. A broker can assist you in a strategy that leaves everybody feeling good.

5. Support services

Many brokers will work in partnership with support services such as legal and accounting. Some even work in conjunction with lending or funding sources as well. As a general rule, it is probably less expensive to contract directly with the services but if you don’t have a relationship with one or more already, then the broker is a good bet.

6. Up to date market intelligence

In a sense, business brokers work much like realtors, listing businesses and presenting the relevant facts. Brokers have the latest intelligence on a given industry in a given geographical area which can prove to be invaluable for either a buyer or a seller. And there are other market concerns that they stay current with as well. Perhaps one of the biggest changes for small businesses is in the area of financing a buy. With the banks as tight as they are, it is not uncommon for the seller to provide some or all of the financing.

7. Peace of mind

Buying or selling a business is a complex task and having a broker can assure the buyer or the seller that the transaction was fair, completed legally and save a considerable amount of time. Full time brokers make their living doing this, are professionals and render both the buyer and seller a real service of value.

The first step that a wise buyer or seller makes is to contact a professional business broker.

Business Broker Guide- How to Choose a Reliable Business Broker

Business brokers or business transfer agents are helpful in selling your business at higher prices. A business broker provides buyers as well as sellers for different businesses. You can easily sell or buy a running business with the help of best business brokers. Business broker works like a real estate agent.

Business brokers find buyers for you to make an effective business sale. Hiring business brokers is the better option to gain more offers and profit. You can even get maximum prices for your small business. Business broker can be a person as well as a firm that enables you to sell various businesses that includes Internet businesses as well as website.

Business brokers provide accurate value of the business. They advertise your business for sale and handle all initial discussions with the buyers and also help the sellers to sell their business at good prices. They attract buyers in different ways. They advertise for your business on their websites and manage space in business newspapers and magazines.

Business brokers are very much confident with their work. They work on the behalf of sellers and sometimes suggest them about how to get more profit from business assets. Buyers can also get benefits of business brokers by telling their requirements. They only charge some commission for every transaction. Usually they get charge commission from both buyers as well as sellers.

While thinking about business brokers, very first question that comes in mind, how to choose a right business broker?

There are not specific qualifications of business brokers but the person or firm, that you’re going to hire for your business transactions, should be reliable, knowledgeable, experienced, planned and friendly with you. You should call two or more business brokers for interview and then choose the best among them. You should check whether the broker has great knowledge about the business or not. Just check out their brokerage skill. Always choose a reputable brokerage firm for your business activities.

Business brokers should know how to maintain good buyer-seller relationship. Broker works as a bridge between buyers and sellers. You should check their working ability as well as their common sense. The person who can devote time for your business is the best business broker.

International Business Brokers Association is the leading association of business brokers.

Business Brokers: Who They Are And What They Do

Since business brokers operate under the radar, many people don’t know who they are and what they do. If you are curious to know, business brokers are intermediaries who work with both buyers and sellers in order to facilitate the sale of small and medium size privately owned businesses.

For you to be a business broker you need to have the right level of education. For example, you must have a business background. You must also have attained business brokerage training from a recognized professional body such as the American Business Brokers Association.

Functions of business brokers

The brokers perform many duties such as:

  • Valuing a business
  • Marketing a business that needs to be sold. While they advertise the business, they maintain strict confidentiality. For example, they don’t mention the exact business that is being sold. They also don’t mention the owner of the business.
  • They introduce prospective buyers to the business
  • Facilitate meetings between buyers and sellers
  • Handle negotiations between the buyer and the seller after an offer has been made
  • Schedule and facilitate the closing of a transaction
  • Draft a confidential business review. The document is very important and is provided to prospects after they have signed a confidentiality agreement.

How brokers work

The professionals usually work with commissions. This means that they get a commission after selling a business. In most of the cases, the commission ranges from 8 to 12%. Most of the brokers charge a 10% commission; however, when the business being sold is small, the commission is usually higher.

How to work with a business broker

The first thing you need to do is to ensure that you hire the right broker. This calls for you to do a lot of research in order to identify a reputable one. Some of the things that you should look for when hiring include: experience, professionalism and specialization.

Once you have found the right professional you should give him/her all the details that he/she needs to work. For example, if you are interested in buying a business, you should give the broker a list of all the types of businesses that you are interested in. You should also mention the amount of money that you are ready to invest.


From the above information, it’s evident that business brokers have a role to play in the buying and selling of businesses. To ensure that you are on the same page with the broker, you should regularly communicate with him/her.