What is a Business Broker?
Business Brokers are qualified individuals who can assist you in the buying or selling of a business. Each state has different licensing at the moment, so in this article I will focus on NSW, please check your individual states Fair Trading website for more details. Business Brokers abide by the Property Stock and Business Agents Act (PSBA, 2002) which is regulated by the NSW Office of Fair Trading.
What is a Business Agent:
"For licensing purposes, the work of a business agent includes the selling, buying or exchanging or disposing of businesses or professional practices and negotiating for the sale, purchase, exchange or disposition of businesses or professional practices or any share or interest in or concerning or the goodwill of or any stocks connected with businesses or professional practices." (Section 3 of the Property, Stock and Business Agents Act 2002).
In NSW, to become a business agent/broker the individual needs to have successfully completed Certificate IV in Property Services (Business Broking) or equivilent and be approved by the Office of Fair Trading to be issued with a business brokers licencse. The office of Fair Trading will asses if the person is fit and proper, has not been disqualified, is over 18 years of age, has paid the due fees and completed the necessary studies before a license is issued.
All business brokers need to undergo yearly continuing professional development (CPD) so their license can be renewed, it is to ensure thay are up to date with the latest legislation and rules. Link: Director Generals Guidlines for CPD.
The Office of Fair Trading is the regulatory body that issues the license and makes sure Business Agents are abiding by the PSBA ACT 2002, reg 2003.
Finding a Business Broker
There are a number of good business brokers in Australia that can assist you with the sale or purchase of a business. They have the necessary qualifications and will act in your best interest through out the sale process. To find a suitable business broker we have a number that advertise on our website see: business broker directory.
Are you a Business Broker? Do you have advice for someone looking to sell a business? Or maybe you have used a business broker?