Brokerage is a popular field of employment, especially for those who enjoy sales, entrepreneurship, and financial planning. But while it’s important to have skills in each of those areas, it doesn’t mean buying and selling businesses for profit comes without its challenges.
Indeed, there’s a bit of nuance involved in the process.
That’s why, with the business brokerage industry thriving more now than it ever has before – thanks in part to baby boomers retiring and selling their businesses and a boom of young entrepreneurs in the economy able to acquire financial backing – it’s important to explore some of the key details involved in the art of buying and selling businesses for profit.
Here are a few things to consider.
Qualification
Several factors fall under this category, and while it might seem obvious that one needs to be qualified to do the job, there’s more specificity that goes into what counts as “qualified” than meets the eye.
For starters, there’s the question of licensing. In some states, business brokers are required to have a real estate license to even begin doing business.
Finding an agency through the International Brokerage Business Association, Inc. (IBBA) is a good way of locating the best companies. Transworld Business Advisors is a member of the IBBA.
Plus, there’s nothing wrong with getting a good, old fashioned referral from someone you trust – be it a family member, friend, lawyer, or otherwise. What’s the company’s reputation? Were customers happy with the services they received?
Unfortunately, it’s not uncommon to hear negative things about brokerage agencies, as customers often feel slighted during the business process – especially if a deal didn’t work out, or they didn’t meet a pre-qualifying mark set by the agency. You’ll probably hear complaints like brokers don’t care about customers as much as the deal, that they don’t educate the buyers or sellers, and that they only care about their listings and will burn through buyers looking for the correct one.
But at Transworld, we consider people to be our No. 1 priority over any deal we make. We didn’t grow to become the largest privately held business brokerage in America without creating lasting relationships with clients.
That’s why we pride ourselves on things like teaching our buyers and sellers about the sales process, how to prepare for a sale or purchase, how to determine and understand the value of their business, and how to market their sale properly.
But you don’t just have to take our word for the commitment. As we mentioned, we’re the largest privately held business brokerage in the United States, something that’s reflected in the awards bestowed upon us. Specifically, the Entrepreneur Franchise 500 Index: Transworld has ranked No. 1 in its industry by Entrepreneur every year since it began franchising, and has steadily risen in the overall franchise rankings every year as well.
The Most Important Rule
Privacy matters. Always.
The clients selling their business have poured their hearts and souls – not to mention thousands or even millions of dollars – into this business. Whether they’re retiring, moving on to another venture, or simply are losing money and can’t sustain the losses any longer, selling their business is a significant life event.
It’s also important to be confidential about marketing the sale of your client’s business so as to not needlessly alarm employees, customers, vendors and the like. The seller obviously wants to attract buyers, but not by blatantly broadcasting to the world that they’re for sale.
That’s why Transworld franchisees are given proprietary software that allows them to confidentially list businesses for sale while using other listings from the network to help business buyers find the perfect company to fit their needs and desires.
Ultimately, our goal is to make sure all parties – buyers, sellers, and landlords alike – walk away from the closing table happy. Maintaining integrity and honesty along the way to compliment your expertise is a must. Business brokers can quickly master the art of buying and selling businesses for profit by taking advantage of the notes above.
Ready to take the next step in your journey toward franchising with Transworld? Contact us today to speak with a representative.
