Career Inspiration for Students Who are Drawn to Investing
A career in finance and investing is not just lucrative, but it’s fast-paced, fun, dynamic, and interesting. If you’re thinking of training to be a business broker or M&A advisor, know that the two fields are different in many ways. As a local business broker, you’ll assist small entrepreneurs in setting up their startups by helping them find the premises, equipment, and other resources. On the other hand, an M&A advisor typically works with larger corporates looking to invest millions of dollars in buying out or partnering with related companies.
To express the profession in monetary terms, business brokers are typically engaged by small enterprises that have less than around $1 million in sales. However, large-scale companies with sales of more than $1 million would prefer to hire an expert M&A advisor.
Aspirants Must Take the Necessary Courses and Acquire Licensing
Whatever may be your career choice, the first step is to explore the requirements outlined by the state where you intend to work. Many states expect you to acquire licensing to work as a business broker. You’ll take a Business Brokerage course that trains you in the fundamentals of buying and selling businesses. Having an MBA degree with experience or training in how to sell your company can also help you attain an impressive success rate of finalizing deals.
Series 6 is organized by FINRA and is called the Investment Company and Variable Contracts Products Representative Qualification Examination (IR). The objective of this exam is to test the candidate’s knowledge and capabilities to work in the investment sector and advise clients on the most viable mutual funds and variable annuities they can buy.
Business Brokerage Courses Include Diverse Aspects
When you’re preparing to take the exam, you’ll study materials that train you in different aspects of being a business broker or Series 6 representative. Diligent studying and the utilization of a series 6 practice test program helps trainees evaluate their readiness for the official exam. A good practice test will mirror the sections and flow of the actual exam. Some of the skills that you might learn include:
- Learning the fundamentals of finance and accounting so you can understand how balance sheets, profit and loss statements, and tax returns work. This training is indispensable when you’re evaluating the financial health of the company targeted for a merger or acquisition. If you have an MBA degree, that’s an added plus.
- Communication skills so you can interact clearly with business owners and stakeholders.
- Multi-tasking skills so you can efficiently switch between tasks and handle multiple things within a short time. Like, for instance, making phone calls, negotiating terms and conditions, and updating spreadsheets.
- Time management and prioritizing tasks according to schedule.
- Planning and organizing deals from end to end
- Writing sales prospectus, analyzing financials, and marketing activities
- Strong sense of business ethics and integrity in dealings
- Basics of owning and operating a business, candidates who have been entrepreneurs in the past have a distinct edge since they understand the challenges of running a company.
Since business environments are dynamic and constantly evolving, you might find that getting continuing education helps you keep pace with the changing industry trends. Staying competitive is essential to gaining and maintaining the confidence of your clients.
Join a Brokerage Firm or M&A Agency
Having completed your training, you can start off your career by joining a reputable brokerage. Most such agencies work similarly to a real estate organization. They’ll maintain office premises and work with a team of sales agents. Since buying and selling companies needs expertise in different fields like legal, financial, real estate, human resources, and various others, brokerages have experts on board or work with consultancies providing these services.
Should you choose to join one of these firms, you can expect to get access to all these services along with hands-on experience, mentoring, and advice on how to handle problems and snags in finalizing deals. As you gain experience, you can consider starting your own firm. However, know that completing business sales deals is an intricate process that can take several months and sometimes, up to a year to clinch. The average time is typically nine months. Sometimes, you’ll find that having worked hard for a deal, it still manages to fall through right before the final stages.
You’ll Work on a Commission Basis
To answer the most critical question of all - you’ll earn remuneration according to the value of the business deal you’re assisting, which tends to fall around 10%. Larger corporate mergers and acquisitions are usually multi-million dollar deals so you can expect to earn more.
Most brokerages have an “office split” system where the commission from each deal is shared. While you can expect to earn a steady income, the returns from any deals that you complete will also be shared among your colleagues. But, since the firm will likely have 5 to 7 ongoing projects at a time, brokerages do give you steady work.
Once you gain enough experience in the field, you can think about striking out on your own. Working a career as a business broker or mergers and acquisitions expert is an exciting profession that tests your mettle in the finance sector and your skills in negotiating deals and convincing people. It’s hard work and the earnings can be sporadic. But, you’ll enjoy every moment of the ride.