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Business Broker Industry - what is a business broker
and what do they do?
So what is a business broker and what do they
do? A business broker is a fully trained
intermediary assisting business owners to sell their
business in a confidential manner to qualified
buyers. Not only do business brokers provide a vital
service to business owners and buyers but they are
also highly sought after by both sellers and buyers.
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While you are
playing a vital role in the business community,
it is also a very lucrative career for you – on
average business brokers earn 8%-10% of the
overall sales price that generally ranges
between $250K to 2-3 million.
Business brokers
make between $120,000 - $300,000+ annually
depending on time put into it. And they are
needed in the business community because they
protect the confidentiality of the deal!
Business
owners (sellers) need a business broker for 5
main reasons. ALL of these reasons begin and end
in CONFIDENTIALITY. A properly trained business
broker protects the confidentiality and
integrity at all times. So the 5 reasons for
confidentiality are…
-
Customers / clients
would go elsewhere
-
Employees would look
elsewhere
-
Suppliers / creditors
might pull credit
-
Landlord might make
life difficult if they knew
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Competition would almost surely RUN WITH IT
19% of all
North American small businesses will have an
interest in selling within the coming year -
The Wall Street Journal
Business
brokering is a rapidly growing industry because
of three reasons...
-
The Baby Boomer led
ownership generation is retiring
A down economy
(corporate cutbacks ) provides increased
buyers
The franchise
revolution has educated more people on
self-ownership
So as you can
imagine, any business owner thinking of selling
is terrified to put his or her business on the
public market for fear of how it will affect the
business if it takes long to sell or does not
sell. And by the way – they are 100% accurate in
their fears as a business is permanently damaged
by being sold on the open public market.
Then along
comes a business broker to protect the
confidentiality and integrity of the deal at ALL
times. Just as you are probably imagining right
now – a seller will jump at the opportunity to
work with someone specifically trained in all
confidential processes.
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