What is a Business Broker, Anyways?

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What is a Business Broker, Anyways?

Brad O'Connor

January 27, 2023

What is a Business Broker?

At OConnor Business Brokers, our mantra is to connect buyers with sellers. This seems simple enough in concept, but there is so much more to being a business broker, and there are many who do not know what it is to be one. Keep reading to learn about what a business broker is, and see how one might be able to help you when the time comes to sell your business.

So what is a Business Broker anyways?

A business broker is a trained intermediary who assists someone with buying or selling a business.

It is not required by law to utilize a business broker in the sale of a business in most parts of the world, but these individuals are highly trained professionals, and understand the steps involved in the process whereas the seller or buyer might not.

The process for buying or selling a business can be lengthy (typically around 6-12 months), but quite often much longer than this. An experienced business broker will create marketing materials that are specifically catered to appealing to as many potential buyers as possible. Reputable brokers generally have a vast, pre-existing network of contacts through which they can source a buyer from a trusted and well-known pool of candidates. An experienced business broker will have the experience to effectively filter through the candidates and source a legitimate buyer. While going through the process of sourcing a buyer, the broker will maintain confidentiality to ensure the business continues to run smoothly and is not negatively impacted in any way until a buyer is sourced.

Once a buyer is sourced, and after the signing of a Letter of Intent, the buyer will perform its due diligence, and if necessary reach out to lenders in order to obtain the required business financing to facilitate the purchase of the business. The seller and buyer will continue to negotiate the finer details throughout the process, eventually resulting in the signing and execution of a definitive purchase agreement The most experienced business brokers will remain involved throughout the entire business sale process, acting as the intermediary and advisor for both parties, and resolving issues as they arise.

Real Estate Agent versus a Business Broker

Despite what some people may believe, a business broker is not a real estate agent. Real estate agents have the training and experience to sell real estate, whereas a business broker has the training and experience to sell businesses. While some business sale transactions include real estate as part of the sale, the process of selling a business is far more complex, and requires additional skills such as valuing a business, negotiating, understanding the legal, accounting and technical aspects of the transactions, and maintaining the utmost level of confidentiality.

Additionally, a business broker will also aid their clients with ensuring financials are in order, going through escrow, and closing the sale. Business valuations, marketing, prospect interviews, negotiation, and due diligence are just some of the critical tasks that business brokers handle.

Why do I need a Business Broker?

At minimum, you need a business broker to help with the long and complex process of selling a business. There are a number of steps, many with specific types of documents and paperwork, all of which a business broker has seen before. By engaging the services of a reputable and experienced business broker to handle the sale of a business, the business owner is able to focus on what matters most: running the business to ensure it will fetch the best price, while continuing to run smoothly and profitably.

In conclusion

The team at OConnor Business Brokers is professional, has over 15 years of experience in the industry, and can help you sell your business, or find one to purchase. Contact us today to learn more!

Sources:

https://www.investopedia.com/terms/b/business-broker.asp
https://en.wikipedia.org/wiki/business_broker

Photo Credit:

https://https://stocksnap.io/author/brucemars https://stocksnap.io/auth

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EVALUATION/CONSULTATION

If you are a business owner considering selling a business, and would like to learn more about OConnor Business Brokers and Consultants and the services we offer, please contact us to arrange a confidential business evaluation.

You will meet one of the Directors of OConnor Business Brokers, and your requirements will be discussed. During the meeting you will have the opportunity to find out more about selling a business, and how our business brokers and M&A Advisors can assist you with the business sale process.

Unlike many other approaches, OConnor Business Brokers start without any preconceived ideas about what is right for you and for your business. By understanding the business and your motivation we can help steer you in the right direction. This often challenges conventional thinking and comes as a refreshing change to the norm.

The Directors of OConnor Business Brokers have experience as business brokers, business consultants, M&A advisors, and business owners. We understand the challenges and pressures that face a business at any one point. We therefore use our time together not to try and sell you our services but to help you understand your options and how we can help.

An initial meeting lasts approximately one hour, and can take place virtually or in person at our office.

Evaluation and Consultation Request

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