Whether you buy or sell a business, have a broker on your side can make a difference between successful results and nightmares. However, not all business brokers will be suitable for your specific situation. Use the tips below to choose the right broker for your needs.
Start by asking for referrals from circles in your business counselors and colleagues. Does anyone use business brokers in the past? Are they satisfied? Is the broker handling the type of transaction in your mind?
You might need to expand your net to find a quality business broker pool that specializes in an intermediary offer like yours. After you have some potential brokers, it’s time to go down to business and narrow the field. Below are some key factors that need to be considered:
– Are individuals or company companies? Professionalism shows many ways including personal appearance, presentation of marketing material, website, language, behavior, and expertise. Use the objectivity and instinct of your intestine. Remember, the broker you choose will represent your business so make sure you are fully comfortable with the person and the company you choose.
– Does the broker have experience working with businesses like yours? Although there is no need for a business broker to have a specific experience in your actual niche, it is very helpful for brokers to understand the nature of your business and have an intermediary agreement with the same characteristics. For example, if you run a family belonging microbrewery, broker with an offer of a successful track record for small wine refineries, family-owned food manufacturers, or small brewpubs may not know better points than beer brewing but can be a very good choice . Thanks to experience with similar businesses.
– What qualifications are brokers. Look for licenses, education, certification, experience, and membership in professional associations.
– Is the broker well prepared? In other words, is the business broker conducting research before your initial meeting? Brokers use comparable sales, business and industrial reports, and other tools for business prices. Your business broker must be able to support the recommended list price, which must be presented in writing, with documentation.
– If you sell your business, find out how the broker intends to market your business. Brokers have many marketing tools available to market their business list. However, some prefer to use specific marketing techniques than others. Be sure to ask the broker to present a detailed marketing plan.
– What types of business work with brokers? For example, if your business has an annual income in the range of $ 50 million, you will need a special type of buyer which makes it important to choose a business broker that is able to attract high-value individuals and investors.
– Check reference. No matter how professional, personality, experienced, quality, and prepare potential brokers appear, close your base by checking the reference. Ideally, brokers must give you references from business with similarities with you.