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Why Be a Business Broker
09
Apr 2019

Why Be a Business Broker

By webmaster

Why Be a Business Broker?


As a Business Broker, every day can be an exciting rush. A Broker is the central point of almost every important business sale, where the seller and the buyer can achieve the best value, and without a broker the best possible result in a sale may never occur.


For the business owner, selling a business can be a very rough time. The client has possibly poured their heart and soul into the business for years, and even though they have verbally stated they want to sell, it may still be difficult for them to let go, we call that sellers remorse. And with regard to the buyer they may not always have the cash ready for the sale. It can be very difficult being the intermediary, but it still can be a very exciting process that yields a large profit for the seller, the broker and the buyer as well. Having the opportunity to work with both parties and develop good and sometimes long lasting relationships is one of the highlights of the business broker’s career.


What is required to become a Business Broker?:

The skills required to become a Business Broker vary, but they all surround your ability to handle yourself in stressful, number-heavy environments. While It is best for a broker to have had experience in owning their own business prior to becoming a broker it is not necessary.  However, it is important to understand the financial workings of a business and to be able to understand the financial worksheets of the business. If a potential business broker has had a business in the past, they will understand how to connect the numbers and empathize with the owner that is now wanting to sell. The Broker who has an in-depth understanding of financial records such as P&Ls, balance sheets, tax returns, etc. is by far more capable of assisting the seller in understanding the position of the business in the marketplace and this same broker will be better equipped to assist the buyer who will want to understand the intricacies’  of the business and how it operates. Having an understanding of the financials gives the broker the ability to take an in depth look into the business at hand, and also provide a way to know its value based on its cash flow.



Freedom:

As a broker, you work your own hours and make your own money (commission); While the structure of the commission for a business broker works similar to how a realtors commission works, it is, more often than not, a higher percentage of the selling price.  This is rightly so since the broker is much more involved with the basic internal workings of the organization. Unlike real estate which almost always deals with a building of some sort or a piece of property, which is what it is, business brokerage deals with a living and breathing entity that changes constantly and has a great many nuances within its structure.  You must know how it operates, how it is positioned in the marketplace, what changes have occurred to it over time and how it might best fit the requirements of a potential buyer. A successful business broker will have to understand the requirements and positions of the buyer and seller and be able to assist them in making a good decision that will be helpful to both parties.  And while as a business broker you will have career freedom, it does come at a cost. To be successful you will have to put in the work and deal with multiple business sellers and buyers. You will most probably find yourself working in different industries. The job requires you to work hard and manage multiple situations because if you do not put in the work, you do not get paid. But, it is one of the most satisfying jobs you can imagine because it never gets boring and you get to meet a tremendous number of people who are looking for help to accomplish the American dream of ownership and realizing that their hard work can pay dividends.  So if you want a great sense of accomplishment, seeing hard work pay off, helping people accomplish their goals, and making a good income then you might want to be a business broker. Like virtually every industry there is always a need for people who want to succeed no matter how many people are already there.


Michael Norman


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