A business broker is a professional who assists in the buying and selling of businesses, helping to connect buyers and sellers while also acting as an intermediary throughout the process.
The assistance provided by a business broker covers a wide variety of tasks including:
- helping buyers determine what type of business they are looking for
- helping sellers prepare their business for sale
- helping buyers find businesses that meet their criteria
- helping sellers arrive at a value for their company
- helping buyers analyze a business for sale
- helping select other members of the sales transaction team
- developing a marketing plan for sellers
- preparing necessary documentation to market the company
- identifying prospective buyers
- interviewing, qualifying and informing prospective buyers
- attending meetings and completing paperwork
- negotiating details
- managing the due diligence process
- coordinating closing activities
- and much more.
A Saturated Field?
There is a common misconception that there are a lot more business brokers today than ever before or that the United States is saturated with them. Neither is true. In fact, the number of business brokers has remained fairly static over the years.
Our research suggests that there is currently one business brokerage firm for every 1,600 businesses. We say that those are pretty good odds, leaving ample room for new brokers.
NEXT — HISTORY OF BUSINESS BROKERAGE