Business Broker Training is a vital key to a successful business brokerage career. With a business brokerage training under your belt, you can more confidently approach clients, work with existing clients, or apply for jobs with larger firms. This business brokerage training video covers the basic best practices for business broker practitioners.

1. The Role of the Business Broker
CERTIFIED BUSINESS BROKER – BEST PRACTICES
The Most Challenging Globally Recognized Business Training & Certification Programs

2. The Role of the Business Broker:
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


The Market
The Roles
Independent or Franchise?
Income Expectations
CERTIFIED BUSINESS BROKER
Today’s Agenda

3. The Market:
 23.7 million small businesses in USA
 Most will transfer ownership in the next ten years
 There are 3,500 business brokers in the US
 Business sold through an intermediary such as a business
broker sell for 20% more than businesses sold without
and intermediary
 Significantly large market
 Need for qualified brokers
CERTIFIED BUSINESS BROKER
Module One – The Market

4. A Professional Resource of the Client
Seller Representative (Sell-Side):
 Maintaining Confidentiality
 Determining Optimal Pricing
 Managing Expectations. I have to contact qualify and manage
your buyers and provide financing options to complete the
transaction. He’ll help the seller assess proposals and offers
and finally facilitate the closing
 Preparing the Company for Sale
 Contacting, Qualifying and Managing Buyers
 Providing Financing Options
 Assessing Proposals and Offers
 Facilitating Closing
Typical Compensation – Retainer and Success Fee
CERTIFIED BUSINESS BROKER
Module One – The Role of the Business Broker

5. A Professional Resource of the Client
Buyer Representative (Buy-Side)
 Presenting Qualified Opportunities
 Matching opportunities with criteria
 Performing preliminary due diligence
 Providing Introductions to Financing Sources
 Presenting Offers to Sellers
 Participating in Negotiations
 Assessing Counteroffers
 Mediator
 Facilitating Closing
Typical Compensation - Success Fee
CERTIFIED BUSINESS BROKER
Module One – The Role of the Business Broker

6. A Professional Resource of the Client
Dual Representative




Facilitator
No Agency Relationship
Must be disclosed to both parties
Unusual to have a true dual representation
 More typical
 Agent of Seller
 Advisor to Buyer to the extent it is advantageous
to the Seller
Typical Compensation - Varies
CERTIFIED BUSINESS BROKER
Module One – The Role of the Business Broker

7. Franchise
or
Independent
Both have advantages and drawbacks which course is selected
is largely dependant upon the individual.
CERTIFIED BUSINESS BROKER
Module One -- Franchise of Independence

8.  Advantages of a Franchise
 Quick to market
 Access to experienced brokers
 Documents prepared and battle-tested
 Immediate database of buyers
 Forms and licenses already in place
 May be easier to exit
 Disadvantages of a Franchise
 Franchise may take a cut
 Branding may be lost
CERTIFIED BUSINESS BROKER
Module One – Franchise or Independent?

9.  Advantages of Independence
 Retain a larger portion of the income
 Totally independent business judgment
 You get all the goodwill
 Disadvantages of Independence
 Higher startup cost
 No access to experienced knowledge base
 Building database from scratch
 Need to develop forms, checklists and documents
 Longer “Ramp-up” Period
CERTIFIED BUSINESS BROKER
Module One – Franchise or Independent?

10.  Income Expectations
 65% report incomes of > $100,000 annually
 Scalable business
 >$500,000 annually not unusual
 Employed business brokers earn approximately
$80,000 annually.
Eat What You Kill
CERTIFIED BUSINESS BROKER
Module One – Income Expectations

11. The Role of the Business Broker
CERTIFIED BUSINESS BROKER – BEST PRACTICES
The Most Challenging Globally Recognized Business Training & Certification Programs