Brokers and investment bankers are two words commonly used in the business world. They are very much alike but function differently. Business brokers sell businesses to entrepreneurs, private equity firms, small private equity firms, venture capitals, and little roll-ups. These people focus on helping business owners get the maximum selling value of their business.
On the other hand, investment bankers are people with a background in investment banking. They do not help small scale businesses. Their focus is on large deals, typically values a hundred million dollars. They are a part of financial institutions that focus on raising capital for big corporations and government entities.
Mergers and acquisitions are usually handled by brokers, while investment bankers handle large sales/big deals. Businesses that make 50 million or less need the help of business brokers as investment bankers would find it not interesting at all. It is going to be too small for them. On the contrary, such businesses are a big catch for brokers. Although investment bankers focus on huge deals, they as well provide complex services such as a broader line of financial services, fairness opinions, and public offerings. They are more than capable of handling complex transactions as they are staffed with professionals with a wide array of experience, licenses, and certifications.
Robert Hirsch Explains the Difference:
Tyler Tysdal Stresses Importance of Hiring the Right Team
Choosing between a business broker and investment banker is a matter of knowing which one suits the needs of the business. Hiring the right team is a must. Generally, low to middle market is catered by business brokers, while investment bankers handle a hundred million dollar deals. There might be other important things to factor in. That is why it is essential to weigh all factors and consider all available options.
Get in Touch with Freedom Factory
When it comes to making tough business decisions such as choosing between a business broker or an investment banker, one can count on the expert service from the business brokers at Freedom Factory. It is one of the world’s best business brokerage firms co-founded and run by serial entrepreneurs, Tyler Tysdal and Robert Hirsch. They are seasoned entrepreneurs with over three decades of experience in the business. They built Freedom Factory to serve as a learning place for all types of entrepreneurs. Feel free to reach out to them through the following contact details:
5500 Greenwood Plaza Blvd., Ste 230
Greenwood Village, CO 80111
Phone: 844-MAX-VALUE (844-629-8258)