If you’re looking to buy or sell an active business, you’ll be working with a business broker. This is a highly specialized industry professional with a unique set of skills and expertise to help you reach your goals.
Business brokers wear a lot of hats. Most people, including many small business owners and entrepreneurs, aren’t always clear on what they do and why it’s so important to work with one.
In this blog post, we’re shedding light on the many roles of business brokers to help you understand how they can support and elevate your business goals. Let’s get started!
Searching for veteran business brokers who can bring your vision to life? Meet Carve Real Estate.
Business Broker Vs Commercial Real Estate Agent
You may be thinking – a business broker sounds a lot like a commercial real estate agent, what’s the difference? It can be easy to confuse the two. In practice, there’s a lot of overlap between what business brokers and commercial real estate agents do, and some brokers actually work in both roles. However, there is a formal distinction between these two professions.
Consider this, there’s a big difference between buying or selling an active, functioning business (with or without property) and simply buying, leasing or selling a commercial building. The former comes with a whole host of complexities and variables that the latter doesn’t – and vice versa to an extent.
A business broker specializes in the purchase or sale of existing businesses and all the nuances that come with it – which can include buying, leasing, or selling property as part of the transaction. On the other hand, a commercial real estate agent’s role is usually limited to just the properties themselves.
Although these terms refer to two different roles, they are used interchangeably fairly often, even by industry professionals. You’ll want to be mindful of this as you search for the right business broker or commercial real estate agent to work with.
Want to know more about working with a business broker? Explore these related readings from our blog!
- Working With a Business Broker: The Basics
- Why You Should Sell Your Restaurant With a Business Broker
- What’s the Difference Between Residential and Commercial Real Estate Transactions?
Business Broker Vs Residential Realtor®
Given the key distinctions between business brokers and commercial agents, you can imagine just how different a broker’s role is from someone who works in the residential real estate realm.
This may seem obvious but it’s important to point out. Far too often we see entrepreneurs attempting to buy or sell a business or commercial property using the same Realtor from their home sale.
At the end of the day, if you’re looking to make moves related to your business, you need to work with a professional who specializes in those types of transactions. Otherwise, you could face delays, headaches, or even financial or legal penalties.
Why You Should Buy With a Business Broker
If you’re looking to buy a business, you’ll want an experienced broker by your side for a number of reasons. Starting off with finding the right business for your portfolio, a broker will be able to connect you with a wide range of listings suited to your preferences – including some that may not be listed publicly.
Second, a broker will also guide you through the all-important due diligence process. When investing in an existing business, you’ll need to do a lot of research and financial analysis before signing on the dotted line. A business broker knows exactly what you need to verify before the deal gets done.
Another big perk of partnering with a business broker is financial connections. Buying a business is no small investment. With that in mind, a well-connected broker can refer you to trusted lenders and even private investors to maximize your financial resources.
Searching for more advice to help your business thrive? You may be interested in these related articles.
- Pricing and Inflation in the Restaurant Industry
- How Will the Tariffs Impact Restaurants in Canada?
- Feeling the Heat of Labour Shortages?
Why You Should Sell With a Business Broker
Working with a broker is equally vital when selling your business. As an expert in these types of transactions, buyer behaviours, and the industry as a whole, a business broker can manage the various aspects of your sale – all while helping you secure the best return on your investment.
Negotiations are a core element of a business transaction. With that in mind, a broker will be your best advocate during this process, ensuring your interests are protected at every step.
Looking to buy or sell a business? Regardless of your goals, we can help! Reach us at ryan@carverealestate.com or call 416-618-0054.
