CNNMoney.com
Companies Economy International Corrections Pre-market Trading After-hours Trading Winners/Losers/Actives Bonds Currencies Commodities World Markets Money Magazine Real Estate Taxes Jobs Ask the Expert Money 101 Autos Mutual Funds The Help Desk Loan Center Best Places to Live Ask the Expert Ultimate Guide to Retirement Retirement Calculators Best Funds Best Places to Retire Fortune Brainstorm Tech Apple 2.0 Blog Big Tech Blog Sectors and Stocks Tech Talk Resource Guide Small Business Makeovers Questions & Answers Small Business Video 100 Best Places to Launch FSB 100 Fortune Small Business Fortune 500 Brainstorm Tech Investing Management C-Suite Rankings Main Create Portfolio Edit Portfolio Create Alerts Edit Alerts
FORTUNE Small Business:

The expert help you need to buy a business

Buying is a team effort - and finding a broker is just the start of building your squad.

Subscribe to Top Stories
google my aol my msn my yahoo! netvibes
Paste this link into your favorite RSS desktop reader
See all CNNMoney.com RSS FEEDS (close)

save_money.03.jpg
Ask FSB
Get small-business intelligence from the experts. Here's a chance for YOU to ask your pressing small-business questions, and FSB editors will help you get answers from the appropriate experts.
Your name:
* Your e-mail address:
* Your city:
* Your state:
* Your daytime phone #:
* Your questions:

(FORTUNE Small Business) -- Dear FSB: I wish to purchase a particular business that is available for approximately $1.1 million. I feel I need a person who can help me with the due diligence, valuation and general advice, etc. Where can I find such a person?

- Lawrence Romano, Henderson, NV

Dear Lawrence: You don't simply need one person.

"Buying a business is a team effort, and your business broker is the quarterback," says Andy Cagnetta, president of Fort Lauderdale-based Transworld Business Brokers.

The broker, or business intermediary, drives the deal through communication with the buyer, the seller, the attorney and the accountant. "We do everything to move the deal along, including some psychology," Cagnetta says.

"It's an extremely emotional process," says Chris Diglio, chairman of the International Business Brokers Association (IBBA) and president of Orlando-based Corporate Investments International. "Often, the reason deals don't get done is that emotions get in the way. A good intermediary will take the emotions out of the transactions."

To find a Nevada-based broker, start at the IBBA's web site: ibba.org. Members of this nonprofit organization must uphold a code of ethics and ongoing educational standards. The organization oversees two levels of certification, a Certified Business Intermediary (CBI) and the more advanced Merger & Acquisition Master Intermediary (M&AMI). You'll see those letters listed with the brokers' names. For a $1 million business, a CBI will be sufficently qualified to help you, Diglio says.

Your broker can help you find your other team members, including an attorney to protect you and an accountant to help with due diligence. "Good brokers will have referrals for people they've worked with in the past - deal makers versus deal breakers," says Scott Bushkie, President of Green Bay, Wisc.-based Cornerstone Business Services. You need an accountant and attorney that specialize in these transactions, he says.

"Stay away from 'door' accountants and attorneys, people who take any client that walks through the door. You need specialists," says Cagnetta, who also serves as the IBBA treasurer.

The brokers agree that it's absolutely critical to be sure that this particular business is the right one for you.

"That doesn't just mean that it will make you money," Diglio says. "If you're not suited to run it, if it doesn't suit your skills and lifestyle, then even if it's profitable, you'll be miserable."

Most brokers use some form of buyer profile to help buyers find a good fit. Often, they're surprised at what they learn, he says: "Ninety-nine times out of a hundred, for example, someone walks in saying they want to buy a gas station and they walk out with a bowling alley." To top of page

Have tips for selling a business? Share them in our forum.

The time to sell
Photo Galleries
Detroit: The Innovators The Motor City needs new industries. These 7 entrepreneurs are bringing tech, medical research and design jobs to the Detroit metro area. More
Road buddies Need to plan the best route and dodge speed traps along the way? Try these GPS devices and radar detectors. More
6 most efficient cars and trucks These vehicles top their classes in fuel economy while offering strong performance, too. More
Sponsors
© 2009 Cable News Network. A Time Warner Company. All Rights Reserved. Terms under which this service is provided to you. Privacy Policy
Copyright © 2009 BigCharts.com Inc. All rights reserved. Please see our Terms of Use.
MarketWatch, the MarketWatch logo, and BigCharts are registered trademarks of MarketWatch, Inc.
Intraday data provided by Interactive Data Real-Time Services and subject to the Terms of Use.
Intraday data is at least 20-minutes delayed. All times are ET.
Historical, current end-of-day data, and splits data provided by Interactive Data Pricing and Reference Data.
Fundamental data provided by Morningstar, Inc..
SEC Filings data provided by Edgar Online Inc..
Earnings data provided by FactSet CallStreet, LLC.