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The Business Broker Industry 

So what is a business broker and what do they do? A business broker is a fully trained intermediary assisting business owners to sell their business in a confidential manner to qualified buyers. Not only do business brokers provide a vital service to business owners and buyers but they are also highly sought after by both sellers and buyers. While you are playing a vital role in the business community, it is also a very lucrative career for you – on average business brokers earn 8%-10% of the overall sales price that generally ranges between $250K to 2-3 million.

Business owners (sellers) need a business broker for 5 main reasons. ALL of these reasons begin and end in CONFIDENTIALITY. A properly trained business broker protects the confidentiality and integrity at all times. So the 5 reasons for confidentiality are… 

  1. Customers / clients would go elsewhere

  2. Employees would look elsewhere

  3. Suppliers / creditors might pull credit

  4. Landlord might make life difficult if they knew

  5. Competition would almost surely RUN WITH IT

19% of all North American small businesses will have an interest in selling within the coming year - The Wall Street Journal

Business brokering is a rapidly growing industry because of three reasons...

  1. The Baby Boomer led ownership generation is retiring

  2. A down economy (corporate cutbacks ) provides increased buyers

  3. The franchise revolution has educated more people on self-ownership

So as you can imagine, any business owner thinking of selling is terrified to put his or her business on the public market for fear of how it will affect the business if it takes long to sell or does not sell. And by the way – they are 100% accurate in their fears as a business is permanently damaged by being sold on the open public market.

Then along comes a business broker to protect the confidentiality and integrity of the deal at ALL times. Just as you are probably imagining right now – a seller will jump at the opportunity to work with someone specifically trained in all confidential processes.

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