30-40% of Business Brokers Are Real Estate Agents

Thu, Feb 13, 2025

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30-40% of "Business Brokers" Are Real Estate Agents – That’s A Problem
Click here for a link to the full article published in WebWire on February 12, 2025.

According to Research Director, John LaRosa: “The term business broker is somewhat fuzzy. The sale of a business may be handled by a trained broker, a merger & acquisitions advisor, an attorney, accountant or a real estate agent. Hiring a real estate agent to sell your business is like hiring a painter to do plumbing repairs.”

Only 20% of the businesses sold are sold by a professional business broker. Part of the reason for this low participation may be due to the fact that many “brokers” are, in fact, real estate agents who try to sell a business as an adjunct to their main activity – selling houses.

Professional business brokers (e.g., Certified Business Intermediary) possess the expertise to assess financial statements, market conditions, and industry trends. They employ targeted marketing strategies to reach specific potential buyers, and have access to pre-screened, serious buyers. They vet buyers financially. Selling a business involves extensive paperwork and legal documentation.

According to Research Director, John LaRosa: “This is an industry characterized by ease of entry and intense competition. Successful business brokers must possess several skillsets. Not only must they have a solid knowledge of finance and due diligence, but they must be good at sales as well as being effective negotiators.”

Although I am required to have a real estate license, I do not attempt to sell houses and leave that to professional realtors.

Be sure to put your business in good hands. Reach out if I can help.
Steve Niehaus, MBA, CM&AP, CBI, M&AMI
[email protected]
239.565.3171

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