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How to Become a Business Broker

Kundan Pandey
Business brokers are in a demand nowadays, owing to their quality skills that can help you sell or own a business in a profitable manner. Here we explain how to become a business broker.
If you have watched the movie 'Pretty Woman', starring Richard Gere and Julia Roberts, you must have seen Edward (Richard Gere), the protagonist of the movie, as a ruthless business man who takes over companies and sells them in chunks, to various buyers. The job of a business broker is almost the same, if not completely.
He is a professional, who is involved in serving clients and customers, who wish to sell or buy businesses. He acts as a bridge or a link between the buyer and the seller. He also estimates the market value or worth of the business and based on their estimated values the clients finalize the deals. 
Moreover, he is also expected to provide correct and legal information to their clients and customers and act as a liaison between the prospective sellers and the potential buyers. It is a potentially rewarding career choice, with loads of challenges.

Job Profile

► The job of keeping smooth, coherent and up-to-date communication between the buyer and seller is the sole responsibility of the business broker.
► Since both the parties mention their grievances and negotiation rules to the business broker, he/she is supposed to act smartly so that both the parties involved in the deal are satisfied.
► A productive and fruitful discussion between the two parties, with respect to the future of the firm that has to be sold or acquired, is mediated by the business broker.

► He enjoys few liberties, like he/she can instruct both parties to come to a common stance on certain misunderstandings or misconceptions that may arise in the course of the deals.

Educational Qualifications And Qualities

► To be very precise, the fierce and often tough field of business requires sharp intellect, a good understanding of the business, and an uncanny knack to deal with complex situations.

► Generally, the job of a business broker is purely based on the experience of the person, and it helps if the person has been in the same industry for a long period of time.
► Though he/she may not have enough educational knowledge of the technical jargon of finance, economics, or the corporate world in general, he/she may have valuable experience.
► However, having said that, we would like to substantiate our statement with the fact that having a good educational qualification does help a lot in the crucial stages of the deal. That's why, nowadays, people with a masters in business administration (MBA), especially in finance field, have started thinking of the job of business brokers.
► It's an obvious fact, that a person aware of the laws and terms of business and finance will surely have a more logical approach to the deals.

► Even a degree in any management-related field that can instill some basic management skills and teach the workings of corporate world, will surely help.
► Becoming a business broker requires excellent decision-making ability as well as strong negotiation skills.

► An impressive personality with an awareness of the business world will surely reap rich dividends for anyone aspiring to be a business broker.

► Integrity and a sense of wise judging ability must be the hallmark of professionalism in this industry.

Starting the Job and Growth Opportunities

► One should be prepared to fail and suffer setbacks. For some business brokers, success comes early, but for some, it takes time.

► Those who can't tackle it for long, quit the job.
► If you are ready to take this step, that can be a giant leap in your career, then first of all narrow down your search to the business field of which you have some knowledge or experience. The idea is that you should have fair amount of knowledge in the area you are choosing.
As a start, try to form links with companies and merger and acquisition (M&A) firms. As your links increase, doors of opportunities will open up. You will have to initially start up just like you do in the real estate offices. Establish a office and hire some staff and grow your company by forming contacts and links. Business networking is very essential.
There are many legalized brokerage firms where you can register yourself while you are starting your job. You can contact your lawyers and friends who have knowledge about these firms. These firms will give you a good start and once you are able to make successful negotiations, you will attract more clients and customers.
The most famous online educational program for business broker studies, is prepared by 'The International Business Brokers Association (IBBA)'. It is one of the key players in providing education on the fundamentals of business broking.
Becoming a business broker is quite challenging, as you constantly need to upgrade your skills. Never think that you have learned enough and keep improving your skills set. Work with ethics and get legally registered. With confidence, perseverance, and dedication, you can reach the pinnacle of success in this field.
However, be ready to face the harsh economy, the bad market phase and the normal ups and downs of the market, both national and international!