Bigger Versus Smaller Business Brokerage?

By Hoke - Last updated: Tuesday, August 3, 2010 - Save & Share - Leave a Comment

Business Brokerage being a person-to-person rather than team-to-team endeavor, the experience and skill of the individual Business Broker rather than size of team is the key determining factor in the success of a transaction.

Although larger Business Brokerages have a bigger footprint and theoretically more exposure, because of high agent turnover in a straight-commission job the probability that your important transaction will be fully or partially exposed to a new recruit with little or no actual Business Broker experience is a consideration. Although the Seller can select the Seller’s Representative, the policies of some larger organizations dictate that any Broker within the firm, including raw recruits may Represent your Buyer.

When considering the larger organization, the percent of new recruits (with less than 10 completed transactions) should be determined. Also inquire about the firm’s policy regarding selection of your Buyer’s Representatives.

Big or small organization, the experience and capability of the Individual Business Broker or Brokers handling the transaction is the key factor determining the success or failure of a transaction.

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