Regardless of if you are buying or selling a business, obtaining a broker can make the result either a success or a total nightmare. However, some brokers may not be the best for your particular situation. Use the advice below to choose the best one for your needs.
Begin by asking for referrals in the close circle of business consultants and coworkers. Have they employed a business broker previously? Did they get satisfied with their services? Can the broker handle the kind of transactions similar to what you have in mind?
You might need to expand your net to locate a pool of capable business brokers that focus on brokering deals like yours. After getting several potential agents, it’s time to get down to business and then narrow down the field. Here are a few important factors to put into consideration:.
– How professional is the individual or firm? Professionalism manifests in various ways including personal appearance, website, speech, mannerisms, and expertise. Use your gut feeling and your objectivity. Remember, the broker you pick t will be representing your business so ensure you are comfortable with your choice.
– Does the broker have experience with businesses like yours? It doesn’t have to be experienced in your exact niche but it is helpful for the broker to understand the character of your business and have expertise brokering deals with similar characteristics. For instance, if you operate a family microbrewery, a broker with a great track history brokering prices for smaller wineries, even family-owned specialty food makers, or little brewpubs might not understand the finer details of brewing beers but might be a superb choice due to experience with similar businesses.
– What credentials does the broker possess? 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 usually price businesses based on similar sales and business reports, among other tools. Your company broker needs to be able to support any suggested listing prices, which should be presented in writing, accompanied with documentation.
– If you’re selling your company, find out the way the broker plans to market your enterprise. Brokers use numerous marketing tools to promote their business listings. However, some prefer to some advertising techniques over others. Ensure that you ask the agent to present a comprehensive marketing plan.
– What type of businesses does the broker work with? For instance, if your business has annual revenues from the range of several million dollar range, you may want a special sort of buyer and that makes it even more important to choose a business broker capable of attracting high net worth investors.
– Check out references. Regardless of how professional, experienced, qualified, prepared and educated the broker seem, just check references to cover your bases. Ideally, the broker should provide you references from businesses comparable to yours.
Selecting the proper broker is a process. Choose wisely to ensure that the outcome is a success.