A business broker is a professional who specialises in the sale of small to medium sized businesses.
A business broker takes on many roles in the business sale process. Such roles generally include marketing, communicating, negotiating, and facilitating.
Let’s look at each of these in turn.
The most important step in selling a business is finding a buyer. This is achieved by a strong marketing campaign.
A business broker will devise and implement a marketing campaign with the goal of finding the right buyer for your business.
These days, marketing a business for sale is mostly undertaken via online means. A business broker will list your business in various business sale websites, such as AnyBusiness.com.au and commercialrealestate.com.au.
In addition, a broker will be marketing the business to their database of buyers. Typically, this database is a list of relevant people who have expressed serious interest in a business in recent times.
The broker will contact such people to inform them of your listing, with the aim of generating interest from these people.
Marketing is only the first step, however.
Once there is interest among buyers, the next task of a broker is to communicate – with both buyers and the seller. Communication in business is crucial.
Buyers need to be communicated with in order to inform them about all they need to know about the business they are interested in.
In addition, a buyer will usually ask for information that the broker does not have readily on hand, and that the broker must ask the seller for.
Thus, a broker will need to communicate with the seller, requesting relevant information as it becomes requested by potential buyers.
The next step of the process is negotiation. A broker worth their weight in gold will be an expert negotiator.
A broker’s job is to field offers from interested buyers, and then pass on those offers to the seller. The seller will then either accept or reject the offer, or give a counter-offer, which the broker must then tell the buyer about.
The negotiation process can quickly become very back-and-forth. A broker could make 6 phone calls all in the space of 3 minutes, giving offer and counter offers to buyers and the seller.
In addition to all these things, a business broker does so much more. A broker is someone who will take the time to listen to your story and your needs. They’ll be you confidant and trusted advisor.