I strongly encourage anyone in this profession to build referral relationships with as many Business Brokers in your area as possible.
Business Brokers list various businesses for sale and match them with interested buyers. They earn a commission based on the sale price of the business (usually 10%). They also assist in valuing a business and make recommendations to enhance that value before a sale. This sometimes entails cleaning up existing debts.
Due to the current economic conditions, there are many business owners trying to sell their businesses but finding it difficult given their problem debts. You will find most Business Brokers very receptive when you approach them and offer your service in negotiating discounted settlements before a sale. Your successful efforts not only benefit the business owner but also the broker by making the business more marketable and increasing their commission with a higher net sales price.
Most businesses in this situation will have several cases to work. In addition, your fees will be higher since there is no need to cap them. By tying the settlement payments AND your fee into the proceeds of the sale, everyone is assured payment from escrow at closing.
All parties benefit:
1. The owner gets more money.
2. The broker gets an easier sale and a higher commission.
3. The buyer gets a clean balance sheet.
4. The creditors get cash.
5. You get a substantial fee with assured payment.
Do a little on line research soon and locate business brokers in your area. Send them a short letter about your service and follow-up with a phone call a few days later. You will be surprised at how easy it is to build several steady referral relationships with these folks and have them send business to you.
Scott F. Soape
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I am a business broker in Toronto, Canada and I agree with your suggestions. Business brokers appreciate any partners that can help transactions happen more quickly and easily. Business brokers will also be happy to suggest other parties that benefit their clients.
A good reason to use business brokers is being able to profit from their experience. If you’re buying a business, you may have already bought several and have all the experience you need. However, selling your business typically occurs less often, so you don’t have as many chances to learn how. Because brokers buy and sell businesses all the time, they have accumulated quite a bit of experience. World Business Finder
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