Brokers

Brokers

What types of professional assistance can you get from a broker?

Brokers are like the matchmakers of the business world - they work to connect buyers with sellers. There are nearly 4,000 business brokerage firms in the U.S. today. Many brokers are specialists, such as mortgage brokers or insurance brokers

You may be asking, “What can a business broker do for my small business?” The answer is that a broker can do a lot.

Most notably, a broker can help you sell your company, should you ever choose to do so. Some entrepreneurs are fiercely passionate about what they do and consider their company to be an extension of themselves. These individuals are unlikely to ever sell their company, which is fine. However, there are also many small business owners who just want to earn some money. They love the challenge of making something out of nothing. By the time their business becomes healthy and profitable, they are ready to sell it, make a healthy profit and move on to the next challenge. In a case like this, a broker can be a big help in finding a buyer.

Even if you have no current plans to sell your company, contacting a broker can be worthwhile. You never know when you may want to, so understanding the process and being prepared in advance could put you ahead of the game. Do you have any idea what your business is worth or how hard it would be to find a buyer? If you don’t, it could be enlightening for you to make an appointment to talk to a business broker.

Finding a Broker

Here are a few quick tips for finding the best business broker:

  • Get referred. Ask the people you trust to be knowledgeable about business (fellow entrepreneurs, your accountant, your lawyer, etc.) if they can recommend a good broker.
  • Consult with the IBBA. The International Business Brokers Association is a non-profit collection of business brokers that is committed to providing education and networking opportunities for brokers and entrepreneurs looking to be connected with a broker.
  • Keep it quiet. If you’re thinking about selling your business, don’t let the word slip out. You don’t want to lose any employees or business partners, especially if you end up deciding not to sell.