What is a Business Broker and Why Do I Need One?

The Key Role that a Business Broker Plays in Business Transactions

When you need to buy or sell a property, whether it’s commercial or residential, most people work with a real estate broker. This is a licensed professional who knows the market, can act as a liaison between the buyer and seller, who understands the necessary paperwork,and knows the legal proceedings for the transaction. But what about when you want to buy or sell a business, who can you work with then? That is where a business broker comes into play.

John Howard is a Business Broker for Alliant Capital Advisors LLC, a business that is proudly dedicated to helping other businesses to sell. In today’s article, we want to share with you a bit more about what we do, and why it is so important for you to work with a business broker for all of your business transactions.

What is a Business Broker?

A business broker is a company or individual professional who specializes in the purchasing and selling of businesses. While most states do not have a specific “Business Broker license” that brokers need to apply for, the nature of the industry requires these brokers to wear multiple hats and have a deep understanding of real estate, law, marketing, and other aspects of the transactions.

In fact, according to the IBBA (International Business Brokers Association) Steps to Success guide for becoming a business broker professional, it is mandatory in many states for business brokers to have a real estate license. While this varies by state, it helps to ensure that business brokers have a full understanding of the real estate industry because oftentimes the sale of a business comes with the transfer of a lease or the sale of a property. 

What are the Benefits of Working with a Business Broker?

Working with a business broker can take a ton of weight off of your shoulders, making for an easier, smoother, and more stress-free business transaction. Let’s take a deeper look into some of the key benefits of working with a broker:

• Business Stability - Before your business actually sells, it will still be an active business. It’s important that you keep your business running smoothly, not only for the sake of your financial stability, your employees, and your customers, but also so that it doesn’t lose appeal to potential buyers.

• Marketing Help - While you maintain business stability, your broker can help you to reach potential buyers by positioning your business at the right price, in the right light, and in front of the right eyes. A business broker helps to sell businesses all the time, so they know what buyers are looking for.

• Perfect Fit - Business brokers can help buyers too. Considering that roughly one in five new businesses fail within the first year, it can be risky to start your own business. Buying an existing business with a proven track record of success can be a safer bet, and a business broker can help a buyer to determine their budget and their needs. 

• Real Estate - As stated in the previous section, many business transactions involve a real estate transaction as well. Instead of separately working with a real estate broker and a business advisor, a business broker can assist with it all and make sure that both transactions, the business and the property, go smoothly.

• Balanced Experience - Many business owners have only ever owned one business and have therefore only ever sold one business, while larger, corporate buyers have years of experience acquiring new businesses. An experienced and reliable business broker has worked with new buyers, seasoned sellers, seasoned buyers, and new sellers alike. 

As business brokers, we help you through every step of the process. For sellers, we will be taking the reins for you, from determining the value of your business, to finding the right buyer, to closing the deal. For buyers, we will be helping you to think of the right questions to ask the seller, determine your budget, and narrow down the list of businesses that would be a good fit for your needs.

Why Should You Choose John Howard?

John Howard has worked as a Sales VP for multiple successful businesses, including a fortune 50 distributor. He understands the complexities of large-scale transactions and has been working as a business broker for Alliant for years. John is currently working with multiple sellers and has an impressive catalog of businesses for sale.

Working with a seasoned business broker like John is the quickest, easiest, safest, and most efficient way to get your business sold at a fair price, allowing you to move onto your next endeavor.

Schedule a Free Consultation

Ready to finally take the first step of selling your business? Schedule a free consultation with John to discuss your business and strategize a game plan for getting it sold. We look forward to working with you and helping you to sell your business.

Thank you for reading!