Locating The Right Business Broker
If you are selling your business, one thing you certainly need to do is hire a business broker. A business broker assists with the selling process, helping you to find the perfect buyer while ensuring you extract maximum value from your business.
However, if you take a look on the Internet, you will see that there are many business brokers to choose from. This is why it is crucial to narrow down your search effectively. With that being said, read on to discover the various factors you should consider.
Experience is always one of the most important qualities you should look out for when you are seeking the best broker. The last thing you want to do is use the services of someone that is going to effectively be learning on the job. You want to be safe in the knowledge that they have sold many businesses before, and, even more importantly, many businesses like yours. Plus, can they provide you with other services? What about a virtual mailbox for the few months after the sale?
It is always a good idea to read reviews that have been left by people that have already used the broker in question for selling their own business. This is the best way to get an honest insight regarding the level of service you are likely to experience. Was their service efficient? Did they communicate regularly? Did they sell the business at a price the reviewer was happy with? If you come across negative comment after negative comment, you know to focus your attention elsewhere.
Aside from this, you should also discover the broker’s qualifications. It is vital to use the services of a certified broker. You may also want to find out if they have a real estate license and it is advisable to discover whether they work part-time or full-time, as you want to know about their level of availability.
When it comes to a service like this, track record is imperative. Any broker can say that they have a good amount of experience and that they have worked with many clients. However, figures do not lie. This is why you need to find out about the broker’s track record as of late, so you can get a good understanding of their success levels and their experience. You should discover how many of the listings on the broker website they represent, how many listings they sold last year, and how long these listings were on the market before they were sold.Referrals – If you know anyone that has sold a business within the past few years, you should talk to him or her to see if there is anyone they would recommend. Don’t hesitate to talk to your friends and family, as they may know someone as well.
Of course, price is an important consideration when you are investing in any type of service, and brokerage is no different. Most brokers will charge a success fee. This is commission that is a percentage of the price paid at closing for your business. This is usually around the 10 percent mark. There may be other fees entailed too, so you will need to ask about this. You should never simply look for the cheapest broker you can find because you are certain to suffer from a lack of quality and you will end up losing money in any case when it comes to the selling of your business.
Last but not last, find out how the broker markets listings. Will they place classified print ads? Do they have other online avenues aside from their website? You need to ensure they have an effective strategy in place for selling your company.