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A business broker is one who matches buyers and sellers of small and medium-size businesses, ranging from used car dealerships to bakeries and beauty parlors. As a business broker, your objective is to save buyers and business owners money by helping them to avoid costly mistakes, market the appeal of the seller's business, and maximize exposure to serious, qualified buyers--all with complete confidentiality. According to the Department of Commerce, one out of four U.S. businesses changes hands in every five years. Business transfers in 1999 generated $300 billion in revenues, including those not sold through business brokers. It is estimated that 25 to 50 percent of company sales are handled by brokers.
To be a business broker, you need to understand business laws, have strong financial and accounting background, and possess good negotiation skills. You can charge 10 to 12 percent commissions, or a minimum fee of $4,000 to $10,000 for smaller transactions. You can start will small-town transactions then move on to merger and acquisition deals: the bigger the deal, the higher your commissions.
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