Six Tips for Finding a Good Business Broker
In a business selling deal, a broker is of much importance. They are a bridge that connects sellers and buyers. Brokers are experienced and are experts in this field. They increase the chances of attracting prospects, help in negotiations, and closing the deal.
There are many business brokers in the market. But finding the right one is not a walk in the park. Choosing a business broker that specializes in your industry will make the process run smoothly and that you get the best value for your business.
When it’s time to sell your business, begin with searching for a business broker. Contact various brokers before selecting the right one for you. After all, you are about to sell a company that you have worked hard to build, and you deserve to get the best out of it.
But to get the best and profitable deal, you need a good and reliable business broker. The following are the best tips for finding a good business broker:
1. Check Their Credentials
The first step towards finding a business broker is to check their credentials. Do they have any state broker association certification like an International Business Brokers Association (IBBA) certificate? Attaining such certification means that the broker has used their time and money to become a professional. It also means that they met the educational and ethical threshold of the association.
2. Marketing Program
The difference between brokers is how they market the business. Some have high-class strategies in marketing, while others only advertise on their websites. Online marketing may be the best way to go, but it should not be the only platform for selling your business.
To get a better price for your business, you need a broker that can connect you with interested and qualified buyers. The more competition there is around your business, the better the deal, and to achieve this, you must work with the best broker.
3. Interest in Learning About Your Business
A good broker should be interested in your business information. Why are you exiting your company, and what do you want to achieve after the sale? If they don’t have the right information, how will they help you achieve your goals during the sale?
A broker must show interest in learning a lot regarding your business during your first meeting. Once your business broker knows the ins and outs of your business, it becomes much easier to market to the right and capable buyers. Remember, a good broker puts your interest above those of buyers.
4. Upfront Fee
Business broker fee should be 10%-15% commission of the cost of your business. Keep off any broker charging more upfront fees to assess your business’s worth.
5. What Listings is the Broker Currently Managing?
Ask your broker how many listings they currently manage. If they are few, it may indicate incapability and lack of experience. On the other hand, if they are handling many listings at a given time, they may not handle your deal with much enthusiasm.
It’s common for brokers to have 15-20 listings in a sequence. In fact, a qualified broker may successfully sell not less than ten businesses in one year. It’s imperative to ask the number of companies they have sold for you to have a glimpse of their capabilities.
6. Public Reputation
What is the broker’s reputation? Do they have the best reputation? Would you want to work with them? A business broker’s reputation plays a vital role when looking for potential buyers, so be sure to select one with a good name.
Fortunately, it is easier to know a person’s character by checking reviews on their website. Be aware of fake Google reviews that have become a real nightmare in recent years.
To get the best reviews, search for brokerages in your area, check out their reviews, and reliable references. If the broker is reputable, it shouldn’t take you long to find satisfied customers willing to testify on their behalf.
Remember, you should evaluate the amount of trust between you and the broker. The relationship you share is more than a business deal. You are disclosing sensitive information; hence you need someone trustworthy. They should care about the legality of the process and be open about what you need to know rather than what you want to know.
Above all, don’t be pressured. Do not rush or allow your broker to rush the process. Take time to learn and understand every detail. Save yourself from the regrets that come with a hasty decision.