The two words that make up the term, "business brokers" are quite familiar to everyone. But once you combine them and figure out what this profession really does, you'd be surprised to realize that you actually are clueless. Yes, only a very few people know what business brokers do because they don't advertise or brand themselves in a way that real estate agents or marketing professionals go.
By definition, business brokers are the people who come in between buyers and sellers when it comes to dealing small and medium-sized businesses, most of which are privately held. In other words, they work as intermediaries. In a way, the nature of their work is quite similar to that of realtors; the glaring difference though is that business brokers only negotiate and handle business establishments and entities. So if you're buying or selling a business, this type of broker is what you're in need of.
Today, there are less than twenty states in the country that require business brokers to get a license from the same body that provides licensing for real estate agents. However, all U.S. states will still require a real estate license if the business broker intends to handle real estate while in the process of selling or brokering a business entity. This is a very important piece of information you need to learn if you are planning to work with a business broker anytime soon.
Just like a realtor, a business advisors typically can represent either the seller or buyer of a business in a sale. Back in its early days, the idea was really to represent the seller but the need for their negotiating expertise has led to the evolution of the profession, more specifically developing into a practice that benefits both the seller and the buyer.
Remember that the representation of a broker of one party usually corresponds to the creation of a fiduciary duty between the business broker and the party, be it the buyer or seller. However, there can be some instances in which a dual representation is allowed, provided both the buyer and seller of a business entity agree to it.
Finally, the usual duties that sell business brokers perform include that of pricing the business using professional valuation, organizing meet-ups and meetings between potential buyers and the seller, doing the negotiations between the parties, writing offers for the purchase of a business, facilitating the closing of the transaction, and providing assistance to the buyer in terms of getting business acquisition financing.