If you are a real estate agent thinking of becoming a business broker, or to adding business brokerage to your current real estate practice, there are some similarities as well as some critical differences between the two practices to keep in mind. Success in real estate brokerage takes local knowledge of the real estate market and being well connected in the community you serve. People who are interested in buying or selling real estate need to see you as the source of knowledge of what’s for sale, which properties offer good value and which ones are overpriced. Your target audience needs to know that you have your finger on the pulse of the market and that you’re up on the latest trends.
While business brokering requires market knowledge and being involved in the community you serve, it is very different in that it is a totally confidential process. Yes, you want people to come to you to value their business, but they also need to know that you will keep your knowledge that the business owner is considering selling his or her business strictly confidential. The value of the privately held business is dependent on people’s confidence that the business is staying in business. People can’t suspect that the business owner is interested in selling. Customers could lose confidence, employees could leave because of uncertainty of their future, landlords could decide not to renew a lease, and worst yet, competitors will go after the business’s customers and spread rumors that the business might not be around much longer.
While some real estate agents do transition successfully to business brokerage, before you consider the move yourself, it is imperative that you fully appreciate the differences between real estate and the complex and highly confidential process of selling a privately owned business. If you have any questions about business brokering or if you are interested in buying or selling a privately held business yourself, please do not hesitate to contact me at 970 429-8220 or at john@vraspen.com. Visit VR Apsen Colorado for more information. We stand ready to help you.