There are many business brokers in the country, and one Florida-based option is Business Brokers of Florida. We’ve rounded up everything you should know about the company in this Business Brokers of Florida review below, including whether it is the best option for your business transactions.
Overview Of Business Brokers of Florida
This brokerage is fundamentally an advisor service that connects buyers and sellers. The company has over 20 years of experience in the field, helping clients with management consulting assistance and services.
The team offers expertise in the world’s premier management consulting organizations and combines it with personal service. A major component of the company’s mission is to generate client confidence, and this is achieved due to years of solving clients’ complex issues and achieving results.
In just the last year, the company has achieved quite an impressive roster of accomplishments, including over:
- 1,100 active members
- 2,700 listings
- 1,260 sold businesses
- $540 million in total transactions
- $1,173 million in combined value
- and 6,300 active buyers
A few core values guide the brokerage’s efforts and provide a foundation for serving all guests. The first is quality services, which means providing quality services to help organizations transform business so that they can thrive in an increasingly online world. Clients’ satisfaction is the second value, meaning it’s their top priority. The company will work to make sure every client is able to achieve their goal. The third value is innovation solutions, which is achieved by offering expertise in Premier Management Consulting to solve any business solutions.
The brokerage’s president also provides a message that details the company’s mission a bit further and outlines what they hope to accomplish with every transaction. Led by Joseph Shemansky, a Certified Business Intermediary from the International Business Brokers Association, the message states that its foundation provides guiding principles for moving forward. He states that the founders of the company created a correct path toward being an association that is the model of the industry.
One pillar that leads the company’s quest is its desire to focus on co-brokering. This means that they are always working on perfecting that system and allows for the company to work in tandem with another broker professional. Shemansky states in the letter that working with another business professional to accomplish a sale is exciting and full of energy. These principles lead the company in the hefty quest of becoming the world’s best brokerage association.
More on Joseph Shemansky
As mentioned above, Shemansky is the president of the company. He became licensed in 2004 and had fourteen years of being a broker under his belt. He is the qualifying broker at Alpha Acquisitions and Alpha Properties Group, as well as the state chairman at Business Brokers of Florida. His specialties include construction, auto, recreation, retail trade, and transportation.
Also on the team at this company are state officers and honorary members, though they may change often. Each part of the business brings a unique perspective and set of skills to the table that fall in line with the standards set forth by Shemansky.
Districts and Representatives
This broker’s services are divided into five districts – Central Florida, North Florida, South Florida, South West Florida, and Tampa Bay. Each of the districts is independently overseen by officers and directors unique to the area. The only exception at this time is the South West district which is under Tampa Bay’s coverage.
All districts are maintained under the same policies and regulations as set forth by the company. These rules are enforced to members by the officers and directors. Additionally, representatives from each district are sent to be a part of the state executive committee.
Types Of Businesses Business Brokers of Florida Sells
The businesses that this brokerage sells are not limited. It doesn’t matter if your business is a new franchise or startup or if it is an established business. This company is willing to work with all types to accomplish a successful sale or purchase. The primary restraint seems to be that businesses are limited to Florida. Other than that, you can shuffle through industry, price, reputation, and more.
Some of the business categories, also known as industries, that the company lists on its website include
- and so much more!
Within each of these main categories is the ability to narrow down your choices of business, which shows how extremely specific the company is willing to represent. Within Agriculture are choices like Christmas and vineyards, and within something like Interior Design, there is window tinting and wall coverings.
Business Brokers of Florida Valuation Process
The valuation process with this brokerage will depend on your representative and your business. As no business or sale is the same, neither is the process to value it. However, there are a few pieces of information that are usually taken into account when it comes time to price your business. These can include the business’ health, assets, growth potential, industry trends and local market behavior, and more.
Sales Process for Sellers
Selling your business is a big deal, and the team at this brokerage is ready to help you conquer, beginning with being fully educated on the process. The first step to selling with this company is to understand what a business intermediary can do for you. They act as a realtor does when listing your home, a negotiator, coordinator, emotional support, and more.
When you’ve decided that you would like to sell your business, you will need to have it evaluated. This process is based on a few pieces of information, but a further breakdown can be found in the section above on the valuation process.
Once an appropriate, and more importantly, the agreed-upon sale price has been reached by the buyer, representatives, and brokers, then it’s time to list it for sale. When this is done, your business intermediary will craft a confidential summary for your business that provides just enough information without making the name or location evident.
The information included in the summary will depend on your business’ unique industry, but it usually includes a summary, facility breakdowns, information on equipment rentals or purchases, and financials, such as tax returns. Your representative will market the business, including posting it for sale on the brokerage’s website.
If a prospective buyer is interested in your business from this first glance, they will be required to sign a confidentiality agreement before they can discuss the business further. You may be asked to answer questions, be present for a viewing of the business, or even enter negotiations when the time comes. Rest assured, only qualified buyers will be moved to the next stages of discussions.
The rest of the process, from finding a qualified buyer and beyond, is heavily reliant on your broker to facilitate. They will make sure that the buyer has funding, draft a purchase agreement, finalize a selling price, and more. At this point, they are taking on many different roles to ensure the sale of your business goes smoothly.
The entire sale process can take between five to eight months on average. If your business is unique, or if the market is unstable, it could take longer or shorter. In order to streamline the process, this brokerage recommends getting all of the information ready to list as soon as possible and pricing the business correctly from the beginning. Overpricing a business usually won’t end up in negotiations that land you on a price you’d be happy to take anyway. They usually act as a deterrent. Another way to sell quickly is to lower the down payment so that there is an easier entry point. Usually, 40% or less is good, but the lower, the better to ensure a shorter sale.
Buying Process for Buyers
This company has a unique approach to all of its transactions, and that includes the process for buyers. The brokerage first recommends that any prospective buyer evaluate their abilities, skills, willingness to own their own business, and financial capabilities. From there, buyers can decide whether an established business or a newer one is best for them. Established businesses offer a more stable future and predictable performance. The alternative is focused on fast growth and possibilities but isn’t exactly a safe option.
From there, the brokerage recommends beginning the search for a business that suits their needs. This can be done via a broker from the company who can take on the brunt of the work for you or via your own research. Opting for a broker means you have access to the latest properties, sometimes before they’re public, and an immeasurable knowledge pool.
When you contact a broker, they will take time to get to know you and what you’re looking for in your next business opportunity. They’ll consider things like skills, finances, and aptitudes in order to select businesses that are the best fit for your needs. In most cases, you will need to fill out a Personal Financial Statement that helps a broker to know what you can afford to purchase.
When it comes to actually analyzing businesses, expect to only look over what the company calls “blind profiles.” These profiles are stripped down and only show general information that they need to, avoiding outright identifying them.
When you find a business you like, you will need to submit a Buyer Confidentiality Agreement. This agreement states that you won’t share any information about the business, including its name, monetary summary, or sale facts. The only exceptions are business advisors or attorneys who may be assisting in the sale. Once you’ve submitted that document, you’re able to receive more information on the business you’re interested in. You can learn about the business’ financials, location, identity, descriptions, and more. From there, if you are still interested, the broker will set up a conversation and facilitate a meeting.
Business Brokers of Florida Success Rates
The company is very clear about its figures upfront. We touched briefly earlier on in this review, but let’s break down the numbers further. Of the 2,700 businesses listed on the broker’s website in the last twelve months, 1,260 sold, roughly. This means that nearly half of all listings posted for sale are actually sold. If you list your business with this company, it has a 1 in 2 chance of actually selling.
These odds aren’t necessarily the best, but over just a 12-month period, that can mean you have a moderate chance of selling your business. Additionally, the total transaction amount over the course of that same year was $540 million. So it’s clear this business broker does seem to sell businesses successfully.
Fees Charged By Business Brokers of Florida To Sell A Business
The fees charged by this brokerage are not exactly transparent. There is a section on the website that breaks down the fee but does not state an actual price. As for what the business has to say regarding their fee, it’s essential that they deserve it with all of the time and expertise they dedicate to the project.
They also go on to say that business intermediaries are typically paid a percentage of the final sale price for their fee. Some may also ask for a “small” fee at the beginning, which acts as a retainer and keeps them going even if a final sale is never accomplished or until that point.
Depending on the intermediary, your initial fee may be credited to the final one or maybe in addition to the final percentage. All fees are justified by the negotiated price being higher than what a business owner could get if they tried to sell a business on their own.
Pros And Cons Of Using Business Brokers of Florida
The business was founded and grown in Florida. As such, the brokers that you might interact with have a local experience that cannot be mimicked by a national brand. These individuals can offer unique market insight, sometimes even bringing in knowledge for off-market activity as well. It certainly helps that the business is further broken down into districts, ensuring a micro-level familiarity.
Excellent Educational Materials
This brokerage acts as a great one-stop-shop option for everything you’ll need to know about selling or purchasing a business in Florida. With in-depth information on the site about all processes, including multiple helpful FAQ sections, there is plenty to learn so you’re empowered to make the best business decisions.
Impressive Sale Volume & Figures
The amount in transactions and value accrued via this brokerage is excellent. Over a single 12-month period, they helped to sell over $540 million in transactions. Also, the amount of active buyers in the database and businesses sold overall is impressive.
While the business has many great figures, one is troubling, and it is the difference in listings to sold businesses. Though 2,700 were listed in a given year, only 1,260 were sold. A near 50% selling rate may not be the end of the world, but it indicated that despite all of the company’s best efforts to sell, only half of the businesses would actually make it.