What does a Business Broker do and why do I need one?

What does a Business Broker do and why do I need one?
Kelcey Lehrich
11/29/2010

Sometimes referred to as business intermediaries, business brokers are professionals who bring together buyers and sellers of privately owned companies.  Typically the client businesses of a business broker are Main Street businesses or middle market companies with revenues of less than $ 10 Million and values of less than $4 or $5 Million.  Business brokers negotiate sales of business ranging from manufacturing or distribution companies to neighborhood restaurants or even revenue generating websites and other intellectual property.

There are typically four main reasons why a business owner would enlist the services of a business broker when looking to sell a business: Pricing, Confidentiality, Marketing, and Time.

Business brokers understand how to price businesses for sale.  There are three main ways businesses are valued or appraised and a business broker can help you determine which method is most applicable to your business and where you should set your asking price compared to those values.

Business brokers understand how to maintain confidentiality during the sale process.  If a business owner puts a “for sale” sign in the front window of his establishment it won’t take long for customers, suppliers, and employees to head for the exits.  Buyer prospects need to undergo a strict screening process and sign confidentially agreements before a business broker will release the details of your business.

Business brokers know how to market business for sale opportunities through a variety of venues; and the smart ones know that today the best venues are online.  There are dozens of strategies to market an opportunity.  When hiring a business broker to represent your business be sure to ask them how they’ll be attracting buyers to your opportunity.

Business brokers know how to respect and protect your time.  Industry statistics tell us that less than 3% of all buyer inquiries on a business for sale ad every purchase a business and most that do won’t purchase the first business they inquire on!  Having a third party interview and screen buyer candidates will save you a lot of time so that you can continue to work on your business while it is for sale.  On average business sales can take 6-18 months to close from the time the listing agreement is signed.

About the Author:

Kelcey Lehrich is a business intermediary with Confidential Business Sale which has offices in Cleveland, Pittsburg, and Detroit.  In addition to his work with Confidential Business Sale Kelcey also works extensively as a consultant in the franchise industry.  Kelcey’s work in franchising includes franchisor development, sell-side franchise sales, and buy-side franchise consulting.  Lastly, Kelcey is also an Area Director for AmSpirit Business Connections, a national business networking organization that assists sales representatives, entrepreneurs, and business owners succeed by creating a forum where they can exchange qualified referrals with other professionals.

Advertisements

6 Comments

Filed under Brand, Branding, business, Intellectual Property, intellectual property rights, Market, Marketing, Marketing Strategy

6 responses to “What does a Business Broker do and why do I need one?

  1. Pingback: Advertise Internet Marketing Make Money – Advertising Small Business Internet Marketing Strategies | Marketing Classes

  2. 4. Thank you very much! Your site has provided me with such great ideas and tricks, that it made me write to long copy websites, good ads, and earn great money. This site is truly helpful. web copywriting

  3. Great post. As a New York based business broker, I would add that a business broker can also offer ideas to enhance the value of the business and lead the sales process so the seller can continue to run the business.

    Gary Kane
    http://www.chimerastrategies.com

  4. We’re a group of volunteers and starting a brand new initiative in a community. Your weblog supplied us valuable information to work on. You have done a marvellous work!

  5. sex

    Seriously like your sites information! Definitely a wonderful deal of data which is very helpful. Proceed to retain publishing and i am likely to proceed reading via! Cheers.

  6. Thanks a million for this, I appreciate the info

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s