Broker Band Width - Why it Matters When Selling Your Business
Broker Band Width...What is it? And Why Does It Matter?
When you look to sell your business in Florida you traditionally turn to business brokers. There are at last count some 800 plus business brokers that are members of The Business Brokers of Florida. Now, here comes that scary part. Although there are 800 plus licenses members of the association there are less than 50 that perform 80% of the transactions. Now the reason for this is that in larger deals the commissions can be large and most business brokers are retirees from other professions with incremental sources of income (pensions and the like).
As a seller, you would probably want to not assume that any salesperson is telling you the truth about their involvement/activity in the industry. But if it was me I would certainly want a full time active agent working my deal.
There is another grave issue at play here in Florida. BANDWIDTH. Bandwith in the modern sense refers that ability of tech to handle volume and flexing dynamics....it is also a term which should apply to your professional advisors.
It is a mistake to think that listing a business is a simple process....there is a ton of marketing, administrative, and selling to be done. Further complicating the mix is the massive amount of information and advertising that needs to be done to leverage up. Technology has fully changed out business yet you still see brokers using print and methods that worked 10 years ago. In addition, they lack the back office staff and technical savvy to manage deals of larger size....resulting in service failure and poor outcomes.
When you sell your business you need to interview your brokers to make sure they are competent with technology and utilize all the tools to drive a successful outcome.
When you look to sell your business in Florida you traditionally turn to business brokers. There are at last count some 800 plus business brokers that are members of The Business Brokers of Florida. Now, here comes that scary part. Although there are 800 plus licenses members of the association there are less than 50 that perform 80% of the transactions. Now the reason for this is that in larger deals the commissions can be large and most business brokers are retirees from other professions with incremental sources of income (pensions and the like).
As a seller, you would probably want to not assume that any salesperson is telling you the truth about their involvement/activity in the industry. But if it was me I would certainly want a full time active agent working my deal.
There is another grave issue at play here in Florida. BANDWIDTH. Bandwith in the modern sense refers that ability of tech to handle volume and flexing dynamics....it is also a term which should apply to your professional advisors.
It is a mistake to think that listing a business is a simple process....there is a ton of marketing, administrative, and selling to be done. Further complicating the mix is the massive amount of information and advertising that needs to be done to leverage up. Technology has fully changed out business yet you still see brokers using print and methods that worked 10 years ago. In addition, they lack the back office staff and technical savvy to manage deals of larger size....resulting in service failure and poor outcomes.
When you sell your business you need to interview your brokers to make sure they are competent with technology and utilize all the tools to drive a successful outcome.
For more on selling your business in Orlando and Central Florida choose Michael Shea PA of Transworld Business Advisors
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