Business Broker

What is a business broker?

A business broker is a professional who helps facilitate the purchase and sale of a business. They are responsible for assisting companies in obtaining a favourable price, ensuring accurate completion of paperwork, and meeting all licensing and permitting requirements. 

How much do business brokers charge? 

Like real estate agents, business brokers typically charge a commission on the final sale price of the business. This figure can vary from agent to agent with most brokers charging anywhere from 5-10%. However, there are cases where this figure can be higher. On top of this, brokers can also charge additional upfront fees for marketing and other miscellaneous costs. 

What are the benefits of using a business broker? 

Engaging the services of a business broker can offer several advantages in the process of buying or selling a business:

• Expert facilitation: business brokers are professionals skilled in navigating the intricacies of business transactions, facilitating a smoother and more efficient process.
• Valuation expertise: brokers possess the knowledge to accurately assess the fair market value of a business, ensuring that the price is reasonable and reflective of its worth.
• Negotiation support: with experience in deal negotiations, brokers act as intermediaries, helping to secure favourable terms and conditions for both buyers and sellers.
• Paperwork precision: business brokers are adept at handling the necessary documentation, ensuring that paperwork is accurately completed and submitted, minimising potential errors.