22 Jul Business Brokers Specialization
Our roundtable discussion panelist Jim Parker had some great observations on the nature of business brokers. He also discussed a relatively easy way that business brokers and M&A Advisors can increase their amount of successful deals. Jim Parker has been practicing business brokerage for over twenty years. He is the founder/owner of Boss Group International and teaches both for the International Business Brokers Association and the Business Brokers of Florida.
Smart business brokers are always looking for a way to stand apart from the crowd. As it turns out there, are a many different ways that this can be accomplished. Let’s take a look at what is often an overlooked area in the world of brokers and how you can take full advantage of the considerable power of specialization.
Parker’s assessment is that being a business broker is, in a very real sense, like being a matchmaker. You have to match buyers with sellers. On face value, of course, this sounds simple. But as every business broker knows, this high-stakes game of matchmaking is anything but simple.
One of the ways that Parker feels that business brokers can give themselves an edge is to have an area (or areas) of specialization. When you specialize, it means that you can quickly, and often easily, match buyers and sellers. Being able to quickly make these matches means that you can process more deals in a given year.
Many industry specialists have someone in mind who might be interested in a given business before they even begin talking to the seller. In the end, it might be as simple as making a couple of phone calls. Over time, specialists can build up powerful databases and also understand trends within their area of specialization. Specialists also understand the financials of a given industry in greater detail. This in turn can give them powerful insights. With these facts in mind, it’s easy to see why this route would be a very attractive option for business brokers.
It may take some time and effort to become an industry specialist. But for business brokers and M&A Advisors looking for a way to stand apart from the crowd, specializing is particularly attractive. You should always strive to be seen not only has trustworthy, but also as an expert in your field. Establishing yourself as an industry expert is a relatively straightforward and yet very powerful way to establish that you are the person to turn to when it is time to buy or sell.