A business broker is a person or firm who acts as an intermediary between sellers and buyers of small businesses. The market served by a brokerage business generally involves the sale of businesses with transaction values less than $10 MM.

Business brokers, also called business transfer agents, or intermediaries, assist buyers and sellers of privately held small business in the buying and selling process of their businesses. They typically estimate the value of the business; advertise it for sale with or without disclosing its identity; handle the initial potential buyer interviews, discussions, and negotiations with prospective buyers; facilitate the progress of the due diligence investigation and generally assist with the business sale.

Types of services that a Business Broker can provide

Broker services vary widely depending on the practice and skill set of the broker. The most common services provided by a broker to a client are:

• Assist client in establishing a MPSP Value - Most Probable Selling Price Valuation; the techniques used by individual brokers can vary greatly in this process
• Develop a comprehensive Information Memorandum on the company; normally a 15-30 page document outlining the business for potential buyers
• Conduct buyer searches
• Exposure - Marketing the business to prospective buyers
• Screen buyers for ability to complete a purchase
• Coordinate negotiations and provide deal structuring advice
• Provide overall deal management to guide the client through the entire process
• Help maintain confidentiality of the sale
• Hourly Consulting for a fee, based on the client's needs
• Perhaps one of the biggest services provided by brokers is the ability to allow owners to stay focused on running their business during the sale process which can be take on average 6 months to 12 monthes to complete.