Transworld, which also has offices in Boca Raton and Miami, has a staff of 25 brokers. Like other business brokers, Transworld brings a seller into contact with several prospective buyers. After narrowing the search to a buyer whose background, business interests and financial resources appear to be good fits with the business, the broker advises clients in preparing financial records and documents and helps negotiate terms of the sale. In some cases, such as the Wycap sale, one brokerage advises both parties. But it is common for the buyer and seller to have different brokerages.
Business brokers receive payment only when they sell a business.
The seller pays a fee, which in South Florida is usually 12 percent of the purchase price. Cagnetta said sellers generally find that the fee is worth the price, because they have found out about the value of a business broker during the sales process. That process starts with finding qualified buyers and runs through vital processes, including determining the appropriate value of a business and carrying out due diligence on the other party. He warns prospective sellers that time they take from running their business can take its toll on the bottom line, thus reducing its market value. Cagnetta added that a business owner who spends large amounts of time negotiating a sale runs the danger of letting word of the pending sale slip out to employees.