Buying a business is different from buying anything else. Understanding how business brokers think and operate can help you to be a better buyer. Here are some truths that we operate from:
BayState Business Brokers Blog
Business owners are a pretty self sufficient bunch. We learn to do things to save money, we learn to do things because there is no one else to do them. You are probably the most capable person at your business. You’ve probably also developed a lot of self-confidence. You feel you can do almost anything.Read More
Whether buying or selling a business, it is important to understand the role of the business broker you are working with, who they represent, what their obligations are, and where their duties lie.Read More
When you are making an offer on a business, don’t be surprised to find that there are other bidders. In many of our business sales, we are receiving multiple offers. This is a common occurrence in sales of larger businesses by investment bankers and the buyers are familiar with how to handle the situation. Many individual buyers that we deal with are not.
An auction process is frequently used to sell middle market businesses (those with sales of $5,000,000 to $1,000,000,000). The primary reason for using an auction is to raise the selling price of the business. An auction is rarely used in the sale of smaller businesses. Would it be a good practice to use the auction process to auction a smaller business for sale?
The outlook for business brokerage is very good and a successful business broker can make a very good income. According to IBISWorld, the business brokerage industry – revenues earned on the sale of businesses at a price of $2,000,000 and under -- should surpass $1 billion in revenue in the next few years. The improving economy, increasing number of businesses, and more business owners reaching retirement age will drive continued growth. According to the 2013 Business Brokerage Press survey, an industry veteran should earn over $100,000. If you like business, being a business broker is an interesting career. You see many different businesses and management styles. No two days are the same. If you are thinking of becoming a business broker, here are some skills you need.
When I think of a cowboy, I think of a tough individual who doesn’t need anything or anybody to do his job. That may work on the range, but it doesn’t work well when you are buying or selling a business.
Buying a business is different than buying a used car. If you act as though it’s the same thing and treat the owner of the business like a used car salesman, you will suffer. That can result in the owner deciding not to sell to you, giving you a worse deal, or not being as helpful to you as he could be after you do buy the business. Here are some important things to keep in mind when you meet with the owner.
If you are a salesperson with experience selling to businesses and are looking for a good opportunity, you should become a business broker. Here’s why:
Business owners sometime think of hiring a real estate agent to sell their business. This seems like a good idea for a few reasons. If the real estate agent is charging a lower commission rate than the business broker, the owner figures he can save money on the commission. In addition, if the business owner is also selling the real estate with the business, he may think that he needs to hire a commercial real estate agent. Actually, many business brokers have real estate licenses and can sell the commercial property with the business. Since real estate brokers and business brokers are both called “brokers”, some sellers question how much difference there is between them.