"What is a Business Broker/Business Intermediary? "
During the course of my time serving as a business broker/business intermediary, I am often asked what we do and what services we offer. Although business intermediaries in the state of Florida must be licensed real estate agents, we are not traditional real estate agents. Where real estate agents focus on selling homes, commercial property, land and such, business intermediaries are experts in helping people buy and sell existing businesses and franchises.
Some other things that differentiates us from traditional real estate agents includes such things as valuing a business, confidentiality, and screening potential buyers to name just a few of the services we provide to owners looking to sell.
When we determine the value of a business, we primarily focus on the cash flow of the business and the operating expenses that we can add back to this figure and eventually give us what we call the owner’s benefit or seller’s discretionary cash flow. In most cases, this is that a perspective buyer is actually purchasing as this is the monetary amount that they can expect to receive from the business.
Our profession is also different in that in almost all scenarios we believe that the fact that your business is for sale should be kept confidential. The fewer people that know your business is for sale, the better off you are. Could you imagine having your employees, competitors, suppliers and others knowing that your business is for sale? Once the word gets out that a business is for sale, there usually aren’t very many happy endings.
In addition, we quality perspective buyers and require that they sign a non-disclosure agreement before they receive any additional information pertaining to a business for sale. Some of the primary qualifiers include such things as the buyers having the financial where with all to meet the seller’s terms. Another potential qualifier could be that the buyer has to have a resident skill or maybe a license, which may be a requirement to operate the business. In some instances a seller may want a resume from the buyer. This may come into play if the seller is considering providing seller financing. The services I just described are by no means all that our profession offers, and I will address others in the future.