Sometimes it might seem that a business broker has it pretty good. After all, what does he or she do? Put an ad up on the Internet, and take some calls? A buyer appears, there’s some negotiation, and then the broker gets a big commission at the closing. Not a bad way to make a living, right?
But let’s see how it really worked in one of our recent transactions.
There were some 30 lookers over several months (each of whom asked dozens of questions via email and phone.) There was one almost-buyer who backed out just before closing (after weeks of negotiation.) Then another 16 lookers with several hundred more questions.
Finally, the right person came along, and there was some serious price/value/terms negotiation. Meetings, inspections, and financing application followed, along with processing, approval, escrow, and (a couple of months later) the closing.
There was more, but you get the point. Finding the right buyer and closing the sale is anything but quick and easy. In the end, the deal was done, and everyone was pleased.
By the way, the business owner/seller was away on vacation for much of this time, fully insulated from the process!
Did the broker earn the commission? The business owner certainly thought so.