When someone decides to buy or sell a business, they often assume an attorney or accountant can handle the process. While those professionals play important roles, they don’t manage the transaction from start to finish.
That’s where a business broker comes in. Their job is to guide both buyer and seller through the sale process, handling everything from valuation and marketing to negotiation and closing. Here’s a closer look at what a business broker actually does.
The first step in selling a business is knowing what it’s worth. Business brokers use a mix of financial analysis, industry knowledge, and market data to determine a price range that makes sense. They assess earnings, assets, liabilities, and cash flow.
This isn’t a simple formula. It’s about understanding how the market will perceive value and what terms are realistic. A good broker will give honest feedback even if it’s not what the seller wants to hear.
Before going to market, a broker helps get the business ready. That means organizing financial records, identifying potential red flags, and suggesting ways to make the business more attractive to buyers.
They may recommend cleaning up inventory, addressing staffing gaps, or formalizing processes. The goal is to reduce friction once the business is under buyer review.
Once the business is ready, the broker creates a detailed marketing package. This includes a business summary, key financial highlights, customer breakdown, and competitive positioning.
Brokers also write confidential listings to attract buyer interest without disclosing sensitive details. This is a balancing act: providing enough information to generate leads, while protecting the business’s identity.
Not every inquiry is worth pursuing. Brokers screen buyers to ensure they have the financial capability and intent to move forward. This step saves time and protects the seller’s confidentiality.
A business broker may also tap into their buyer network or run targeted outreach campaigns, depending on the situation.
Once a buyer expresses serious interest, the due diligence process begins. This involves reviewing financials, contracts, leases, and other operational details. Brokers coordinate this stage, help both sides manage expectations, and keep the process moving.
They also act as a buffer, fielding tough questions and preventing small issues from turning into deal breakers.
Price is only one part of a deal. Payment structure, transition period, training, seller financing, and non-compete terms all play a role.
Brokers understand how to structure deals in ways that benefit both parties and reduce the risk of failure. They’re skilled negotiators who keep emotions in check and focus on getting to a workable agreement.
Once terms are agreed upon, brokers coordinate with attorneys, accountants, lenders, and escrow agents to finalize the sale. They ensure documents are completed correctly and timelines are met. Their involvement at this stage helps avoid last-minute surprises and delays.
In short, a business broker manages the process from beginning to end. They combine strategy, sales, and deal management to help business owners exit on their terms, and buyers make smart acquisitions.
If you’re ready to explore the sale of your business, reach out to the experts at Murphy Business – Emerald Coast. With their experience in business sales, they can help you navigate the complexities and guide you to make the right decision at the best time. Contact them at (850) 374-8884 or complete their contact form to get started on your business succession journey.
