Regardless of if you are buying or selling a business, obtaining a broker can make the result either a success or a total nightmare. But, some business agents may not be suitable for your particular circumstance. Use the advice below to select the best broker to help with your needs.
Begin by asking for referrals in the close circle of business consultants and coworkers. Has any of them used a business broker before? Were their services satisfactory? Does that broker handle the kind of transaction you are considering?
You may have to widen your net to find a pool of qualified brokers that specialize in brokering deals such as yours. Once you have several potential brokers, you can go down to business and then to the field. Here are a few important factors to put into consideration:.
– Is the person or company professional? Professionalism shows in a lot of ways including personal look, how marketing materials are presented, language, website, mannerisms, and experience. Use both your gut instinct and objectivity to determine that. Don’t forget that the agent you choose will be representing your business so make sure that you’re completely comfortable with the individual and firm you choose.
– Does the broker have experience working with businesses like yours? While it’s not necessary for the company broker to have specific experience on your precise niche, understanding the nature of your enterprise and experience brokering deals with similar characteristics will be helpful. For example, if you run a microbrewery, a broker with a great track record brokering prices for small wineries might not understand the details of brewing beers but might be a good choice due to experience in similar businesses.
– What credentials does the broker have? Search for certification, licensing, education, experience, and membership in professional associations.
– How prepared is the broker? That is how well did the business broker do her or his research before meeting up with you? Brokers utilize similar sales, company and business reports, along with other resources to evaluate businesses. Your broker needs to have the ability to support any proposed listing prices, that should be shown in writing, together with documentation.
– Find out the way the broker intends to market your business if you are selling one. Agents have many tools for marketing available to market their business listings. But some prefer using particular techniques of marketing over others. Ensure that you ask the broker for a thorough marketing plan.
– What type of businesses does the broker work with? For example, if your company has annual revenues of over $50 million, you’ll need a particular type of buyer and so you need a business broker effective at attracting such high net worth investors.
– Look at references. Regardless of how professional, experienced, qualified, prepared and educated the broker seem, just check references to cover your bases. The broker should provide you references from businesses which are comparable to yours.
Getting the right broker to sell our business or assist you in finding a business to buy is a procedure. Do your homework to ensure a successful outcome by making a wise choice.