FALL 2024
EDUCATE
Before anything else, you need to educate yourself.
Business brokerage is not an easy career. It is not
even offered as a major in college. So, you need to
continuously learn more on your own volition in
order to succeed. Continuing education would include
online courses, in-person courses, conferences such as
IBBA and M& A Source conferences, and mentorship.
Specifically, finding a mentor who has experience in
the business brokerage industry can be incredibly
valuable. They can provide guidance, share insights,
and help you navigate challenges as you build your
career.
The business landscape is constantly evolving, and
staying abreast of industry trends, market dynamics,
and regulatory changes is essential for success as a
broker. Your commitment to lifelong learning, fostered
by your educational background, enables you to
adapt to new developments, acquire new skills, and
stay ahead of the curve in an ever-changing business
environment.
Second, educate sellers. As a business broker, you
o�en work with your clients, the sellers who may not
be familiar with the intricacies of selling a business.
You need to educate and guide clients through the
process, explain complex concepts in a clear and
understandable manner, and empower them to set the
right price expectation and make informed decisions
on the buyer selections. By providing valuable insights
and education, you can help clients navigate the
complexities of the selling process with confidence.
Third, educate buyers. Some buyers are experienced,
such as private equity firms in the middle market.
But most buyers, especially those in small main street
deals, are inexperienced. No ma�er if you are dealing
with an experienced or inexperienced buyer, you as an
intermediary need to educate them about the business
you represent and the process they need to follow.
Additionally, sometimes you may need to educate
the first-time business buyers who look for perfect
businesses to purchase, despite the imperfect reality of
businesses. Otherwise, if you let buyers solely do what
they want, not only can you not close the deal, but you
also waste your invaluable time.
LEAD
Each transaction has two major parties, sellers and
buyers, and frequently involves CPAs, a�orneys,
landlords, lenders, escrow agents, and other third-party
service providers. Within this process, each party
has its own needs, expectations, wants, and usually
egos. Because of these variables, deals will easily fall
apart if each party does not go in the same direction.
Therefore, strong leadership is required within the
process. You, as deal facilitator and maker, need to
lead and control the process from the very beginning
prospective stage.
The seller is the starting point of the process. Many
new business brokers are under the assumption
that they always need to satisfy their client. While
it is important to be diplomatic, you are the expert
consultant, not them. Sellers are accustomed to selling
products, not businesses, and they will o�en try to
apply their own incorrect tactics to the process which