A business broker is an individual or company that assists in the purchase and sale of small, main street businesses. These agents can take on a variety of tasks to help their clients achieve their acquisition and offloading objectives, and might specialize in companies belonging to certain industries or possessing specific, unique characteristics.
What Is a Business Broker
KEY TAKEAWAYS
- A business broker is an individual or company that assists mainly in the purchase and sale of small, main street businesses.
- Their tasks include helping companies to secure a favorable price, submit paperwork correctly and fulfill any licensing and permitting requirements.
- Business brokers are paid through commissions based on a percentage of the proceeds realized from the transactions they help to arrange and oversee.
- Regulation of business brokers varies by state, with some jurisdictions requiring licenses and others not.
Understanding a Business Broker
Transferring ownership of a company is a complex process. Among the various challenges that must be overcome include determining a fair valuation, making sure the company’s finances and accounting records are in order, negotiating a price, going through escrow and closing the sale.
Business brokers not only manage these steps but also ensure confidentiality by requiring interested buyers to agree not to disclose the details of the potential business sale. Business brokers, which may work independently or as part of a larger brokerage firm, can also help with licensing and permitting requirements and weed out unqualified suitors.
Those wishing to buy or sell a company can locate business brokers through attorneys, accountants, and professional associations, such as the International Business Brokers Association (IBBA).
We Sell Main Street-Midstreet Businesses.
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MAIN STREET
Less Than $1m In Revenue
MID STREET
$1M – $25M In Revenue