Business Brokerage

Business brokers facilitate the sale of small to mid-sized businesses, representing sellers (listing businesses for sale), buyers (helping find acquisition opportunities), or both.

You value businesses, market listings, screen buyers, facilitate negotiations, and coordinate transaction processes.

Compensation is typically 10% commission on sale price for smaller businesses ($500K-$5M value) or sliding scale for larger deals.

A single transaction selling a $2M business generates $200,000 commission.

Success requires understanding business valuation, deal-making, confidentiality, and matching buyers with appropriate opportunities.

Most states require real estate or business broker license.

Startup costs include licensing ($1,000-3,000), MLS subscription for business listings, marketing, and professional development totaling $5,000-15,000.

Building pipeline involves marketing to business owners considering exit (accountants, attorneys, business consultants referrals), buyer cultivation (investors, entrepreneurs), and business listing services.

Transactions take 6-18 months typically from listing to close.

Operating costs include licensing, marketing, MLS fees, and transaction coordination tools.

Challenges include long sales cycles, many deals falling apart, business owner emotional attachment, and economic sensitivity.

Success requires patience through long deals, dealmaking skills, maintaining pipeline since closings are sporadic, and building network of buyers and referral sources.