YOUR CAREER AS A BUSINESS BROKER The Trillion Dollar Opportunity - - Mergers & Acquisitions (M&A) Over the next ten years, as the “baby boomers” retire, they will transfer more than $10 trillion in business assets - - more than double the current level. And more than ever before, these business assets will be sold to third parties, not simply “passed down” to family members. This presents an incredibly large opportunity for business brokers and professional M&A advisors in the U.S. over the coming years. SOURCE: THE EXIT PLANNING INSTITUTE Business Broker vs. Merger & Acquisition Intermediary Business Brokerage practice clients may sometimes have up to $5M annual revenues. Middle market M&A practice clients typically have $5M to $100M annual revenues. The choice is yours: You can serve both small and middle market businesses. Note: Investment Banking Firms with securities licenses typically serve those clients with annual revenues exceeding $100M. Successful Candidates have a Wide Range of Experience • Sales/business development professionals • Management consultants • Mortgage brokers/realtors • Accounting professionals • Financial advisors/insurance agents • Former small business owners • Retired or mid-career corporate executives http://sbinformation.about.com/od/bizopportunities/a/bizopps2005.htm Business Brokers are the Matchmakers of the Business World Business brokers are the matchmakers of the business world bringing together buyers and sellers of small and mid-sized companies. "The majority of business brokerage firms handle the sale of everything from the corner dry cleaner, to the local quick print, to the local liquor store and everything in between." says Tom West, founder and former president of The International Business Brokers Association (IBBA). IBBA estimates there are approximately 3500 business brokerage firms in America with surveys indicating that 35 percent are sole practitioners. The field of business brokerage continues to match buyers and sellers each year. Sunbelt Business Advisors began franchising in 1993. Since 2000, the company has grown from 232 franchises throughout the United States and internationally to over 397 in 2004. VR Business Brokers of Ft. Lauderdale have also experienced rapid growth, adding 72 franchisees over 5 years. According to Mr. West, earnings in the business broker field are "well above average and a six figure income is certainly attainable for many. Commissions range from 10 to 12 percent of the purchase price with firms charging a minimum fee of at least $10,000 to $15,000 for smaller businesses. The average price of a business that sells today goes for about $250,000 not including inventory or real estate." http://www.funcareers.com/area/mrr/sa-busb/Business_Broker.2.html Business Broker Career   How much you can earn as a business broker will partly depend on the market, but a good business broker can tap into an untouched market and knows where to find potential buyers and sellers who didn`t even know earlier that they were interested. Sellers of a business customarily pay a business broker either a flat fee or a percentage of the sale price. Up through the 1990's, the Lehman formula was used to determine payment. Under this formula, brokers were paid 5% for the first $1,000,000, 4% for the second $1,000,000 and so on. The problem was that there was no real incentive for the broker to push for the higher price, so more popular today is the flat rate or a set commission instead of a declining percentage commission. The actual amount of income a broker can generate will depend on the market as well as how much time he is willing to devote to buyers and sellers. If you're interested in a business that you can do at home, being a business broker certainly is one of those types of businesses. As you expand, you may need to set aside office space in your home for meeting with potential buyers and sellers, but in the beginning, you are certainly free to meet with them in their offices. Of course, they may wish to meet at their office; and if that's the case, having a home office doesn't matter. Don`t rush into setting up your business, but rather take the time to learn everything you can learn about it because that is what will guarantee your success.