The Tough Task of Becoming a Business Broker

Posted on Jan 18 2018 - 4:19pm

brokerageMost people would want to start their own business from scratch. Of course, this may or may not the best way to own a business. Buying a thriving business or company could be a better option if you can afford it.  Business brokers can help you with this type of endeavor.

On paper, it is not difficult to become a business broker. But in practice, it takes a lot of business know-how, knowledge of government regulations, and connections.

Professional Credentials

Being a business broker requires a high level of professionalism and accreditation. A broker must complete courses and pass an exam given by the International Business Brokerage Association. This earns the person the Certified Business Intermediary (CBI) designation. This is just the beginning of a career in brokering businesses. Years of experience and additional training go a long way in establishing credentials and a network of business owners.

Tasks

A business broker does not only create an opening for a transfer of business. He lays the groundwork for the task at hand. The best time to deal with a business broker is before the client decides to buy a business. Typically, a feasibility study is done by the potential buyer, this helps the potential buyer to decide to buy or not. After the decision to buy has been made, they can bring in the business broker.

broker calling a clientThe pre-screens the business, helps point out interests, negotiates with the owner, and assists with the paperwork. The most important task is keeping both parties meeting towards a common goal, and keeping them interested and at the negotiating table. Both parties can give information to the broker which can help the negotiations moving along.

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A broker plays an important role in buying a business. It may be a small corner store or a franchise, but what is important is that he keeps both buyer and seller appeased and working towards the sale. This is hard work and requires a lot of patience, technical skills, and training.