Many people think being a business broker is the same as being a real estate agent. While real estate focuses on an asset, businesses are much more about cash flow than assets. Assets are only part of the equation and business brokers can help buyers understand this major difference. Cash flow, or seller’s discretionary earnings is the most vital part of the business buying equation. Business buyers must know this before they start their search to buy a business. Many buyers are overly concerned about how much in assets come with the business. While this may make them feel good, a good business tends to have low assets compared to earnings, or cash flow. They are able to keep low inventory levels and generate much more cash flow from the hard assets and turn a good return on investment from those assets. These are the kind of things a good business broker will look out for and do for you.
A good business broker can do many things for a business seller. They will value the business. They will locate buyers for your business. They will help with due diligence. They may help the buyer secure banking and financing for your business. When you are searching for a business broker, make sure you find one with the experience and the right background to make your transaction go smoothly. It could make the difference between your business selling and not selling, or getting the highest possible price for your business sale.