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Tuesday, April 14, 2015

Do I Need a License to Be a Business Broker?

Charles Winn Cox
Charles Winn Cox, P.A.
VR Boca Raton on FacebookLinkedIn TwitterGoogle+

Good question and not easily answered. A license is merely authorization to do a particular thing in accordance with the issuing authority's policy, regulation or law. In this case we think of issuing authority as being a State. To find out if the State requires a license, you can now do some research? Of course you can access the web, and try to find your answer; but is it correct? You do believe everything you read on the web, right?

Let's think about this. State licensing is ordinarily regulated by state law. Then this becomes a legal question. Remember that only a lawyer may give actual legal advice because their counsel will affect rights and responsibilities of the person who listens. Easy enough, just go ask an attorney. He or She can tell you the language of the law and how it applies to that particular thing you do; business brokerage. But wait a minute, now that you know about the license, does that make you a business broker; maybe. Practically every teenager who just received their driver's license is ready for HIGH SPEED ACTION DRIVING on our super highways; . . . maybe not.

Being a business broker is understanding the art and craft of the deals that close. You remember "Do-Re-Mi" by Richard Rodgers and Oscar Hammerstein II in The Sound of Music. If you don't, stop reading and go watch a wonderful movie. I'll wait for you. Maria wants the children to start at the beginning and build upon the art. She sings seven notes associating each note with something the children can remember; like "me, a name a call myself." Aha, business broker is a name you call yourself. But, this doesn't mean you understand or can sing out that you are a business broker, you have more to learn. You are not a business broker yet; license or not.

Navigating business transfers is complicated at best. You should not take it lightly, especially through rough seas, i.e. financial recasting, due diligence, contingencies, lease assignment, marketing, work with buyers, to name a few. Being a business broker conveys, "I know what I am doing; I can sell your business." Remember, both seller and buyer is placing their trust in a broker's ability to successfully broker the business transfer. After all it's not the name that’s important; but your ability to actually deliver a close deal. Don't do this unless you know what you are doing, learn the craft. Do I need a license to be a business broker? Yes you may, but having a license and calling yourself a business broker is only the beginning. Join a firm that will coach and train you in the craft and art. I did and it has been the best experience yet. I have learned so much and continue to grow professionally just being part of the team. VR Business Brokers team membership is a great beginning. One that in a very short period of time you too can truly call yourself a business broker come to know and understand the craft and art of business brokerage by joining VR Business Brokers. Like Maria says, "once you know all the notes you can" . . . make a million different deals. Contact VR Business Brokers in Boca Raton today!

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