Business brokers act as intermediaries between buyers and sellers in the brokerage process. Chances are a business broker can sell a business faster and for more money than the business owner. Choosing the right business broker for you could impact the success level of your effort to buy or sell a business. Whether you are selling a business or shopping to buy a business a business brokers resources are important.
A business owner would surely want to know how a business brokers finds buyers? Do they have a pool of buyer contacts?
People and companies looking to buy a business would want to ask, how does this business broker know what businesses are for sale? Many businesses are not publicly listed.
Some of the best business acquisitions were never on the public market.
The best business brokers are involved in their local business community, in trade associations, if they are specialized brokers they are involved in those industry events. Some good questions for a broker may be; What industry associations are you a member of? What industry events to you attend or exhibit at?
Business Broker Associations include IBBA or if your broker is in Georgia; GABB.
You may want to find out how involved this business broker is in the local business community? Local Chambers of commerce are are great organizations for business brokers to network and build relationships. They also help in learning about business acquisitions that may not be publicly marketed.
In our area there are two local business chamber associations. Savannah is proud to be the home of the oldest Chamber of Commerce in the USA. The Savannah Area Chamber of Commerce has over 2,000 members and is a great resource for the SE Coastal business community both large and small.
The Small Business Chamber of Savannah is another terrific resource for small businesses. Though it is a much small group than the Savannah Area Chamber it has the benefit of close networking with small business owners. This is another great resource for keeping up with many aspects of small business in the S E Atlantic coastal area.
Business Brokers are required to be licensed real estate agents in most states. Be sure to find out if your broker is licensed. You can do that in Georgia by visiting the Georgia Real Estate Commission website.
As licensed real estate agents and brokers is your broker a member of the local area real estate association? In Savannah commercial real estate brokers would belong to the RCA (Commercial Real Estate Alliance) which is part of The Savannah Area REALTORS® automatically entitles you to membership in the National Association of REALTORS® (NAR) and the Georgia Association of REALTORS® (GAR).
You may want to consider specialized brokers, these are business brokers who specialize in particular industries. They usually have knowledge of businesses that may not be listed yet or are not publicly marketed. Specialized brokers may have buyer lists of qualified buyers looking for a specific size and type of business. This has the potential to speed up the business selling process which is currently estimated at 10 months from listing to closing.
Surely the more involved a business or real estate broker is in the business community the more information they would have to guide business buyers and sellers toward making good decisions.