Business Brokerage Service

What can I expect when dealing with a business brokerage?

Many people don’t have a clear idea of what a business brokerage can do for them, yet they play a crucial role for many business owners and prospective buyers looking to sell or buy.  Buying or selling a business takes a very unique, specialized skill-set that does require a professional that focuses on business sales transaction.  All too often, people make the mistake of confusing the role of a real estate sales representative to that of a professional business intermediary (a person who focuses on selling businesses).  This article will quickly examine the role of business brokerages and how the service of a business sales professinal differs from that of professional that focuses on selling just real estate.

The role of Business Brokerages
For a business seller, the expectations for a professional business intermediary (a business broker or sales representative) are many.  Business brokers are required to assist the seller prepare their business for sale, help determine a selling price, prepare an information package on the business, advertise the business (while maintaining confidentiality of the sale), find potential buyers – and screen & qualify them.  They must show the business to buyers.  Facilitate communication between the buyer and seller and ensure that there are no missteps on this front, which often happen.    They must go over conditional offers with a seller and facilitate the negotiation process.  Next comes due diligence, which for a business can be lengthy and complicated if not facilitated smoothly.  Finally, the closing of the business is carefully monitored by business brokerages to ensure a smooth transition of ownership.  Bear in mind that this is merely a (very) high level overview of what is done for the business seller.  Remember that this process can be repeated several times until a buyer is found that actually goes all the way to the end of the purchase (i.e. does not back away).  Selling a business is usually a longer process than selling a piece of real estate as well.

For the business buyer, business brokerages offer many benefits.  They assist with sourcing good businesses for sale, present different options, show different opportunities and help buyers with a purchase offer.  A professional business broker will remain engaged in the process through the conditional offer period, due diligence, waiving of conditions right through to the closing.  Commissions are paid by the seller – there is no direct out of pocket cost to the business buyer when dealing with business brokerages to buy a small business.

Work with a professional
Business brokerage professionals focus on the buying and selling of businesses.  Real estate salespeople focus on the buying and selling of real estate.  There is a major difference and a vastly different skill-set involved.  A professional business intermediary must have the expertise in business valuation, financial statement analysis, valuing intangible assets, how to buy and sell business, deeper exposure to laws governing business sales, equipment & premises lease issues, franchise agreements, employee issues pertaining to a business sale, and so on.  Selling real estate is different on a fundamental level.  Business brokerages have professionals with the experience to sell your business properly.  A business is a major investment – dealing with a focused professional is a wise decision.  If you are interested in more information, the site M&A Business Brokers is an excellent resource for more information on the business brokerage profession.

Please give us a call to see what we can do for you.  We service Toronto, GTA, Hamilton and the 'golden horseshoe' of southern Ontario, Canada.