What is a Business Broker? - part 2

Although business brokers mat be also real estate brokers, the sale of businesses is entirely different from the sale of real estate. When you purchase real estate, it is easy to see what you get. With a business, there are often intangibles that are hard to define. It takes skill and experience to put a value on these things. Often, the buyer may not want all of what is considered by the the seller to be part of the business. The broker needs to be able to negotiate these differences.
A big difference between the sale of a business from real estate is in the marketing. While a seller of real estate may want as much exposure as possible, business sales are often confidential. Business sellers may not want employees, customers or competitors to know about the potential sale until it is solidly in place. The broker will use marketing methods that respect this situation. While there are sites that list businesses for sale and some brokers publish and distribute lists, there are many businesses that a buyer will only find out about after consulting with a broker. Once the broker determines that a prospective buyer has the capacity and might be the right fit for a certain business, will he be given information on that business. A good business broker desires that every transfer of a business is a win-win situation with the seller moving on, enjoying the fruits of reward for developing a good business, and with a buyer getting into a business that will provide opportunity to succeed and provide financial return and security.

What is a Business Broker?

A business broker is a professional who assists in the sale or transfer of a business from one owner to another. Sometimes referrred to as an intermediary or facilitator, business brokers act in a manner similar to what a real estate broker might in the sale of real estate. In fact, in many states, including Florida, a real estate license is required to earn a commission for the sale of a business. While some businesses include real estate in the form of a building in which the business operates, most businesses are sold without the real estate. If the seller of the business owns the real estate, a lease may be arranged for the buyer to continue operation in the current location. Most often, the business leases space from a third party, and a transfer of lease or new lease is arranged by the broker.
The business broker works with the seller to present the business in the most positive light, maximizing the value. Successful business brokers also work with the buyer to make the chances of future success a priority. Business brokers have training and experience in valuing businesses, arranging financing and assisting in transfer documentation.

Sand Dollar Real Estate/ Business Depot has been involved in business sales in Southwest Florida since 1986.