Start and Build a Successful Business Brokerage Career

The Business Brokerage Industry has been around for more than 100 years.  However, many people have never met a Business Broker or considered it as a possible career.  The Business Brokerage Industry is not very large.  For the last ten years, there have been approximately 3,000 Business Brokerage firms in the United States.  Some quick math tells us that the average would be about 50 to 60 Business Brokerage firms per state.  So, not a very large industry.

So, what is a Business Broker?  Simply put, a Business Broker facilitates business owners and business buyers in the transfer of ownership of businesses.  Many of the services of a Business Broker are similar to those of a Real Estate Broker.  But, a Business Broker is selling the tangible and intangible assets of an on going business.  The knowledge and skill of a Business Broker can make the experience much less complex and rewarding for both the buyer and the seller. 

General Business Brokerage Activities

Presenting Business Brokerage Services to Business Owners
Assisting the business Owner with the Decision to Sell their Business
Listing the Business for Sale
Preparing a Professional Offering Package to Market the Business
Implementing Marketing Plan 
Interviewing Qualifying Potential Buyers
Presenting the Business to Potential Buyers
Assisting with Offers to Purchase or Letters of Intent
Helping the Business Owner Evaluate the Offers(s)
Organizing the Due Diligence Activities
Following Through to a Successful Closing and Transfer

How Many Businesses Are There?

The total number of businesses in the US is About 20 million. 50%, or ten million, of these are real businesses. By real, we mean actual operating businesses not hobbies, governmental agencies, nonprofit organizations, etc. The ten million businesses are the ones that Business Brokers make a living selling.

How Many Businesses Sale Each Year?

The percentage of business that are for sale at any given time is about 20%.  Of the two million businesses for sale, around 250,000 business are sold each year.  The average Business Brokers will sell five to six businesses a year.  Considering there are only about 10,000 Business Brokers and each selling five to six businesses a year, Business Brokers are assisting with less than 25% of the transfers each year. The remaining businesses are sold by the business owner, a real estate agent, CPA, attorney, or someone else that does not specialize in Business Brokerage.  As you can quickly see, there is a tremendous need for more professionals to choose Business Brokerage as a career.

Description of a Typical Business Broker

Business Brokers are a diverse group of individuals but they share some common characteristics. Entrepreneurs at Heart, Hardworking, Dedicated to Doing the Best Job Possible for their Client, and not afraid to take calculated risks.  The average Business Broker is male, in his mid fifties, and has been a Business Broker for about 12 years.

Interesting Business Brokerage Notes and Stats

     > The average percent commission is 8% to 12%
     > 47% of Business Brokers are Sole Practitioners
     > 53% of Sole Practitioners reported gross commissions in 2005 in excess of $ 100,000
     > Ranked by http://www.funcareers.com/categories/bu/sa-busb/Business_Broker.html in the Highest Income Potential Category
     > “10 Best Small Business Opportunities for 2005 – Business Brokerage