What is a business broker?
At the most basic level, a business broker is merely an intermediary who assists with the selling or buying of a business. Often, they handle both sides of the transaction. A good comparison is a realtor who facilitates the sale or purchase of a home or property by having the expertise to determine the optimum sale or purchase price, market the property, advise the buyers or sellers of possible stumbling blocks, and negotiate a smooth closing process. A business broker is also a facilitator of a sale, but in most cases, the sale or purchase of a business is much much more complex than a real estate transaction.
HOW A BUSINESS BROKER CAN HELP?
A business broker is your partner throughout the process of buying and selling a business, assisting you with the details and complex processes involved. The valuation of a business, for example, must take into account numerous factors. Establishing a fair price requires a significantly different approach for a business that is asset-heavy, such as a manufacturing enterprise, compared to one that is cash flow-intensive like a restaurant.
It’s simply not feasible for a non-business broker to develop true expertise in this industry. That’s where a firm like BroadCreek, with a deep and broad bench of in-house expertise, becomes an asset.
WHAT MAKES A GOOD BUSINESS BROKER?
A good broker must also have the networks and resources to widely market a business—and more importantly to reach those who have the interest, expertise, and financial wherewithal to buy a company. With its extensive client base and industry contacts, BroadCreek has the ability to quickly locate potential buyers and identify opportunities for those looking to acquire a business.
Discretion is of course vital to the sale of a company as well, especially in the early stages. BroadCreek can screen potential matches and negotiate the initial stages of a transaction for you, soliciting indications of interest and letters of intent. This necessary but usually time-consuming process screens out the “tire kickers” and those without the willingness or ability to pay what the business is worth. Having a trusted, confidential business broker on your side can help to move the process along more quickly for both business buyers and sellers, while freeing up your time to focus on other efforts.