Introduction to the Business Brokerage Profession - Part 1

The Business Brokerage ProfessionSmall to Mid-size Business Market?
Who are Business Brokers and what do they do?The U.S. Department of Commerce estimates
Business brokers are intermediaries betweenthat there are sixteen to eighteen million
owners who want to sell their business (orbusinesses in this country and that 20 percent (or
businesses) and potential buyers who have3.2 million to 3.6 million) are for sale every year.
expressed interest in buying those businesses.Of those businesses that are for sale, about
Typical duties of a Business Broker250,000 of them are actually sold each year!
- Finding business owners who want to sell theirIn addition, research has shown that for each
businessbusiness listed for sale, there is approximately 20
- Finding potential buyers to purchase a businessbuyers who have expressed an interest in
from a clientpurchasing it. This, of course, is due to the fact
- Valuing the businessthat it is far less risky to buy an on-going business
- Preparing an offering document to attractthan to start one.
qualified buyersFurthermore, baby-boomers (a lot of them
- Helping a buyer raise financing to purchase aformer company executives) are skipping
client's businessretirement and going right into a business of their
- Helping with Due Diligence activitiesown. The easiest entry point, as we know, is
- Being the intermediary between the buyer'sthrough the purchase of an existing and profitable
lawyer and the seller's lawyerbusiness.
- Helping with closing activitiesFuture articles will continue explore this exciting
What make this profession a critical piece of theprofession...