What is a Business Broker?
Highly skilled and equally as trained professionals, business brokers help in the process of selling a business. They represent the needs of a seller, being instrumental in the marketing, vetting and negotiation processes. A good broker not only understands the element crucial to the sales journey, but also nuances relating to staffing issues, profit and loss and lease documentation.
Key Characteristics
Navigating Sydney’s competitive business landscape can be difficult. When it comes to finding Sydney business brokers that are right for you, keep these traits in mind.
- Knowledgeable about the industry you are in
- Trustworthy
- Persistent and resilient
- Prior experience
- Accredited
Business Brokers Myths Versus Reality
They are The Same as Real Estate Agents
A common misconception is that business brokers and real estate agents are one and the same. Business owners may mistakenly contact a real estate agent to help sell their business, and whilst they can assist in the process, there are certain intricacies that only a business broker can navigate.
Real estate agents’ area of expertise lies in selling physical land and properties. Whilst they may sometimes sell a business, it is not their primary venture. Conversely, business brokers focus on selling a business, and in rare cases may sell physical property. Ultimately, the valuation of your business as an entity, and your business as a physical property will greatly vary. However, when selling an entity, it is best to enlist the help of a business broker rather than a real estate agent.
Brokers Don’t Need Accreditation
Another misbelief is that simply anyone can become a broker. To be recognised as an authorised business broker in Australia, a Certificate III diploma in real estate practice and property services is typically required. Additionally, in New South Wales, aspiring business brokers will need a Class 2 Business Agent License. Whilst not compulsory, some brokers may also have a university qualification in areas such as business and management.
It’s Easier to Sell My Business Alone
Many business owners contend that they may be able to sell a business themself, without any assistance from a business broker. However a key consideration to make before deciding to do so is whether the owner can continue to remain dedicated and focused on profitsing their business in the midst of the sale process. Oftentimes the buyer of a business is someone in a broker’s database, thus a direct contact. As a business owner, it may prove challenging to gain access to the same connections.
Business Brokers Work For The Buyer
Business brokers predominantly work on behalf of a seller, given that their primary role lies in assisting in the sale of a business from start to finish. Ultimately, a business broker enlisted to sell your business will have a vested interest in maximising your business’ valuation and acquiring a suitable buyer.
How can a Business Broker Help With My Business?
Sydney Business Brokers acts as an all-in-one resource that can assist you in making your business exit. Seasoned professionals with extensive experience and areas of expertise across multiple industries act as a guiding force in ensuring your get the best deal possible.
Get in touch with us today to help sell your business!