RASM NEWS YOU USE ALLIANCE COMMERCIAL REALCAN ESTATE
Real Estate Broker, Mortgage Broker, Stock Broker, Business Broker… Business Broker? What is That? By: Ken Swan, Agent/Broker, Wagner Realty
B
usiness Brokers are licensed Realtors® in Florida but specialize in representing buyers and sellers of businesses, medical practices, and professional associations. It’s a specialization like real estate agents who specialize in home and land sales, industrial and office properties or representing landowners or landlords and tenants.
BUSINESS BROKERS DEFINED Business Brokers represent individuals who, for various reasons, may want to retire and or desire to pursue other interests, and have made the decision to sell their existing business or professional practice, such as a dentist or doctor, or CPA. While business owners are experts in their field, a restaurant, retail store, manufacturing plant, or orthodontic practice, they typically do not have the time or knowledge to sell their entity and garner the best return on their invested capital. Similar to a residential listing, Business Brokers assist the business owner or medical professional, or CPA in preparing the business for sale, ensuring that all records are current and the company itself is neat and orderly. It presents an opportunity for someone to continue in their stead and earn a return on their capital investment to purchase the business or practice. Many individuals seeking to move to Florida, particularly the Bradenton and Sarasota area, must have a new position with a company or practice located here or acquire a business to have sufficient cash flow to live and support their family. In this role, the Business Broker represents the buyer by identifying potential companies and practices to acquire through various multiple listing business networks. Because business owners do not want their employees or competitors to know that they are selling their business, everything is done on a confidential basis. Prospective buyers are required to sign a “Non-disclosure Agreement” to review the financial information from the seller. Business Brokers do not 22 | ELEVATE [ JUNE 2022 ]
have “For Sale” signs hanging in their seller’s business window. Although you may not see a “For Sale” sign, a change of ownership at your local dry cleaners, hair salon, or restaurant, a Business Broker was probably involved in assisting in the ownership change. Whether our RASM members are assisting in a real estate transaction, business brokerage transaction, or both, making sure all parties’ finances are in order is more important than ever. For the seller of the real estate, make sure all tax returns are off the extension, complete, and filed with the IRS. Also, make sure that year-to-date financials are up to date and that any internal business reports are accurate. For buyers of real estate and businesses, the same goes. Taxes are up to date, and personal and business credit is in order. Finally, if you’re a Realtor® or Business Broker, get in with a lender early. Loans from the U.S. Small Business Administration, such as the 504 for real estate and the 7A for business assets, are great to help with financing. Other programs like the Rebuild Florida Loan Program through the state of Florida Department of Economic Opportunity can also help. With a great Realtor®, Business Broker, buyer, seller, and lender; transactions can go smooth for all parties. For more information on Business Brokerage contact Ken Swan at kenswan@wagnerrealty.com. •
