Insight Business Brokers

Insight Business Brokers is a company that specializes in helping smaller, main street businesses find buyers. These businesses can include restaurants, retail stores, hotels, and other types of small businesses. They offer services such as valuations and sales agreements for business owners, as well as consulting on how to improve the operations and financials of the business. Their fees vary depending on the service offered and the final cost of the sale. However, they are a small percentage of the total value of the transaction.
Small business transactions dropped 39% in the 2nd Quarter of 2020

Small business transactions in the second quarter of 2020 dropped 39% from the first quarter. The loss was spread across a variety of industries and demographic groups. Immigrants and African-Americans were the most affected. They experienced substantial drops in business activity, particularly in April.

Overall, there was a partial rebound in May and June. Almost all industries were affected. However, the biggest declines were seen in construction, personal/laundry services, and restaurants. While overall losses were smaller, they were still significant.

These losses were disproportionately felt by female and black business owners. Simulated estimates suggest that the industry distributions of these two groups place them at higher risk of business activity losses.

The number of active immigrant business owners was down more than 1 million. Their activity fell from 3.1 million in February to 2.0 million in April. It is estimated that COVID-19 and health-driven demand shifts triggered this drop.

Losses were also felt by Asian and Latinx business owners. Their activity declined by 21% in April and 10% in May. Additionally, the Latinx business distribution is different from the national distribution. This may contribute to disproportionate losses.

Overall, the loss of 3.3 million active business owners was the largest drop on record. Although these numbers have since bounced back, the loss is still significant. Moreover, the impact of COVID-19 is being calculated for the first time in the April 2020 Current Population Survey (CPS).

In the two months after the implementation of COVID-19, the number of business owners in the US declined by almost 230,000. In addition to the large declines, a few industries saw their owners increase. Agriculture experienced a small boost.

Other industries, such as transportation and hotels, saw major drops. Both incorporated and unincorporated businesses reported big declines. Several industries, including construction, retail trade, and professional and business services, saw partial rebounds.

Business activity continues to drop significantly for both immigrant and black business owners. More mass closures of small businesses could further reduce profits and jobs. Similarly, the effects of social-distancing policies are expected to affect many entrepreneurs.
Fees are a percentage of the ultimate purchase price

In the realm of negotiating the sale of a company, the business broker has an advantage. It is their job to make the process as efficient as possible, and to find the right buyer. They have the resources to run an elaborate scavenger hunt for prospective buyers. The fees involved may vary depending on the complexity of the transaction. For instance, a low-pressure, no-frills deal is likely to be cheaper than one that requires a lot of legwork on the part of both parties.

Most brokers charge a commission, usually in the form of a percentage of the ultimate purchase price. There are pros and cons to these fees. While it may seem counter-intuitive to pay a fee to entice a potential buyer, the upside is that it weeds out the amateurs, and leaves the more serious competitors to their sherpa duties. On the other hand, if the broker feels they are having a hard time finding a prospective buyer, they may cut you a discount.

Generally, they will charge you a percentage of the selling price of the company. However, they may also charge for other services such as a marketing campaign and accountants. These extras can quickly add up. If you are a seller, it is always a good idea to shop around before you settle on a broker. Be sure to ask about the fees in person and to find out if it’s a one-time fee or if it is a monthly or yearly subscription. This can prove to be a major stumbling block if you are considering the sale of your business.buisnessinsight.com

One thing to remember is that the best business brokers may only work with a small swathe of companies. This may be because the business is too small to justify a large staff, or because the owner is in the middle of something else. As a result, you might have to settle for a lesser broker. The one you choose should be well-qualified, and should be able to tell you all about the company’s history, its financials, and its competitive position in the market.
Specialize in smaller, main street companies

The best way to do this is to engage a business broker. This will likely take the form of a fee based arrangement or a combination of free consultation and a lump sum payment. Regardless, a business broker will likely have their ear to the ground. Using a seasoned professional may result in a smoother sales experience for the buyer.

Of course, the biggest challenge is securing a suitable business broker. There are numerous firms out there, but you will want to do your homework before making the leap. A qualified agent will have the knowledge and know-how to guide you through the pitfalls of the sale. It is not uncommon for a business broker to spend the better part of a day with you, if not the entire day. During the negotiations process, they will be able to help you determine which of the many qualified leads is likely to turn into a winning bid. On top of that, a broker can often help you decide which of the plethora of viable buyers is most suited to your business. In fact, many brokers will be happy to offer you a no strings attached free consultation. And if your search is for a large, established firm, chances are they have connections in the know.