Largest organization

Larger privately held companies are classified in the Middle Market and will employ firms that specialize in Mergers and Acquisitions, or M&A. However, business brokers do participate in mergers and acquisitions activities when it involves a transaction between two or more smaller companies. Business Brokers and M&A firms do overlap activities in the extremes of their market. These extremes are called the Transitional Market, or TransMarket.

Upon signing a listing contract with the seller wishing to sell the business, the brokerage attempts to earn a commission by finding a buyer for the sellers' business for highest possible price on the best terms for the seller. To help accomplish this goal of finding buyers, a business brokerage commonly does the following:

Ensures Confidentiality--Brokers have established systems in place to protect the confidentiality of a business. Appraisals--Most business owners have no idea what their business is worth. Certified Business Brokers are trained in business valuation and can help business owners understand the true value of all their hard work and sacrifice. Market Knowledge--Brokers make their living selling businesses. They are in the market on a daily basis conversing with Buyers. A local business broker understands the local market as well as what a business is worth. Saves time and stress Listing the business for sale to the public, often on a Multiple Listing Service, in addition to any other methods. Based on the law in several states, providing the seller with a business condition disclosure form, and other forms which may be needed. Preparing necessary papers describing the business for advertising, pamphlets, tours, etc. Advertising the business. Advertising is often the biggest outside expense in listing a business.