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A keen business sense is hard to come by, not to mention a strong background in business. If you have both of these and are looking to leverage your skills in a way that is potentially rewarding and fulfilling, you may want to consider going into franchise business brokerage.
What is a franchise business broker?
Business brokerage is a profession that doesn’t get much attention, but it is essential to businesses around the country. A business broker acts as an intermediary between the buyers and sellers of businesses. Think of a business broker as a real estate agent of sorts, only in the world of businesses instead of real estate.
Most business brokers represent owners who are attempting to sell their business, although buyer representation has become more common over the last few years. A few states permit dual agency representation, allowing you to represent both the buyer and the seller if both parties agree to it.\
What does a franchise business broker do?
The following are some of the tasks that you will be responsible for accomplishing in the franchise business brokerage industry. If these sound like tasks you feel comfortable doing, then there’s a good chance you’ll love being a business broker.
- Help buyers identify what kind of business they are looking to buy.
- Help buyers find businesses for sale that meet their needs and criteria.
- Help buyers analyze businesses that are for sale.
- Help sellers prepare their business for sale.
- Help sellers identify an accurate value for their business.
- Help sellers develop an effective marketing plan for selling their business. This marketing plan must be able to reach a wide audience of prospective buyers while retaining strict confidentiality.
- Help sellers prepare the proper documentation needed to market the business.
- Help sellers identify prospective buyers by interviewing, qualifying, and informing them.
- Creating an offering summary, which is also known as a confidential business review. This is provided to prospective buyers once they have signed a confidentiality agreement and have been qualified.
- Help facilitate meetings between buyers and sellers.
- Completing and organizing all necessary paperwork for either the seller or the buyer (or, in some cases, both).
- Negotiate transaction details between the buyer and seller.
- Help buyers write an offer to purchase a business.
- Help facilitate a due diligence investigation.
- Help the buyer obtain business acquisition financing.
- Coordinate the closing activities.
What does it take to be a business broker?
Although prior experience is not required to become a Transworld Business Advisors franchise owner, having some kind of business background is helpful, regardless of whether you actually have business experience or education.
If you don’t have a business background, you can obtain training in a number of different ways. For example, the American Business Broker Association (ABBA) provides two-day training seminars a few times every year. And the team at United Franchise Group provides ongoing educational resources for its team of brokers.
Certain personal attributes are important as well. Besides an aptitude for sales, you should have a determination to work hard, thrive on being independent, and have the ability to be diplomatic.
Consider becoming a franchise business broker
If you have business and sales skills and are looking for a business opportunity yourself, consider a Transworld Business Advisors franchise. Running a business brokerage company requires no inventory, no equipment, no payroll, and low overhead.
More than that, you’ll have the opportunity to work whenever and however you want. For more information about our franchising opportunities, be sure to download our Transworld Business Advisors brochure to learn more today.