Hiring a Business Broker – Is Association Membership Important?

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Hiring a Business Broker – Is Association Membership Important?

Is Association Membership Important?

Hello, on behalf of Florida Business Exchange, welcome to ‘Is Association  Membership Important?’  This is one in a series of videos from Florida Business Exchange that cover the basic steps you will encounter in buying or selling a business.  At Florida Business Exchange every one of our intermediaries is a member of the Business Brokers of Florida association, or BBF.  The BBF is the largest association of business brokers in the State of Florida and that membership benefits both buyers and sellers.  It is important to know that not all business brokers are BBF members.

The Business Brokers of Florida is the largest business brokerage association in the United States.  There are other state associations, even within Florida, but not even the most populated states such as California or New York have larger memberships than BBF.  Ironically, BBF is even larger than national-based associations of Business Brokers.

Why is the size of the association important to you as a buyer or seller? The BBF is comprised of more than 800 members who each have full access to all association members’ listings through the BBF’s multiple listing service.  Non-BBF members access is very limited. Can you imagine listing your house with a broker who didn’t have access to the residential multiple listing service?

The BBF multiple listing service website is the primary site member brokers use when searching for a business for a qualified buyer. They know the quality of the listings and they know they can cooperate with the listing broker. If you list your business with a non-BBF member you eliminated the best chance of selling your business.

The BBF multiple listing service also allows broker members to register their buyers and automatically generate new listings that meet the buyers interests and qualifications on a weekly basis.  Member brokers are also able to generate a list of qualified buyers registered by other brokers every time they list a new business.

If BBF membership is so great why aren’t all business brokers members? There are a number of reasons.

The broker may not be a ‘joiner’ and just wishes to go it alone.
The broker may be more comfortable with residential or commercial real estate sales.
The broker may not be willing to pay the fees required to belong.
Because of a lack of experience, the broker may not have been accepted for membership. Many apply; not all are chosen.

Brokers who are not members of the Business Brokers of Florida may have high ethical standards and the best of intentions, but their ability to serve business buyers and sellers is severely hampered because they are not BBF members. Under the laws of the state of Florida, anyone with a real estate license can represent himself as a business broker. This includes agents who focus on residential or commercial real estate.

With a BBF broker, you know you are getting:

A broker who has completed training in BBF processes, methods, tools and standards.
A broker skilled in marketing and selling businesses.
A broker held to the highest ethical standards.
A broker capable of leveraging the largest association of business brokers in the United States.

You certainly will want to ask a broker about his experience, background and skills, but one of the first questions should be “Are you a member of the Business Brokers of Florida?” With the Florida Business Exchange team that is a requirement.

Again. On behalf of Florida Business Exchange, I would like to thank you for listening.  If you have any questions regarding preparing your business for sale, please do not hesitate to contact your Florida Business Exchange intermediary for a complimentary consultation. I wish you the best of luck in pursuing your after sale dreams, and having our team of professionals helping you through the process.

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