I am trying to understand the arrangement of business brokers in Florida. It has been mentioned here in the past, but they have an MLS style system for business listing if the broker is a member of the Business Brokers of Florida. Of the dozen brokers I have spoken with, they all want to use that system to help me search and find a Florida business. One called it co-brokering, and from what I understand, they share commissions much like those on residential real estate. My understanding is that it won't cost me in financial terms to let them help me. But, I am concerned it might cost me a chance at closing a deal.
Why in a seller's market would a broker work with another broker to bring a buyer? I would think that if I go that route, I will be disadvantaged going in by the listing broker. Has anyone else run into this situation, more specifically has anyone bought a business this way recently? I asked a couple of these brokers how it works, and they say it's the law in Florida and if the listing broker wants to stay in business, it won't be a problem.
Business Brokers in Florida and Co-brokering
by a searcher from North Carolina State University
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