Selling a business is a complicated endeavor, which requires a substantial investment of time and effort. A business broker can simplify the process for the seller, negotiate an excellent deal, and ensure peace of mind for both parties.
Choosing a business broker is even more complicated than finding the right real estate specialist. Whenever you decide to put your company up for sale, you’ll get numerous offers from different brokers. How can you select the right one? Let’s find out.
1. Check Out Their Experience
If you want a broker to do his or her job well, they should have sufficient experience. Checking the credential is important as long as you can get access to their previous clients. One of the easiest way to find out if the brokers are worth your attention is to check if they are credentialed by IBBA (International Business Brokers Association).
You can take advantage of IBBA to find the nearest certified broker near you (whether you are looking for an Orlando business broker or a specialist in Oregon) and get an extensive consultation about your particular case.
In order to be accepted to IBBA, the brokers should have several years of experience and provide proof of training.
2. Ask The Right Questions
Before you hire a broker, you can ask the company or individual several questions to get an idea of how well they are prepared to represent your interests.
· What is your experience with businesses similar to mine?
· How will you go about selling my business?
· Do you know anything about my type of business and how are you planning to get information?
· What process do you use to screen potential buyers?
· What are your credentials?
These questions should help you understand whether a person is genuinely interested in making a sale and how much effort he or she is about to put into the process.
3. Find A True Specialist
The best business broker you can find is the one, who has experience selling similar businesses. For example, a broker dealing with dotcoms may not be experienced in selling brick-and-mortar flower shops and vice versa.
Before hiring a broker, ask extensive questions about his or her experience selling similar businesses, and how they would go about selling yours.
If brokers don’t have experience selling similar companies, you may want to look for another specialist or ask to reduce the fee.
4. Talk About The Fee
You always get what you pay for. Business brokers are hardly an exception. If a broker charges a low fee, there must be some hidden problems or costs. The average broker commission is ten percent. If someone tries to charge you more or less, you may want to look deeper into the subject.
When it comes to business brokers, the commission can be negotiated. So if you would like to hire a particular broker but the commission is too high, try to negotiate.
Never pay money up front. The common approach is to pay the broker after the deal is finalized. If a broker asks for money before selling your business, look for another specialist.
5. Avoid The Tension
When you’ve chosen two or three candidates, make sure to meet them personally. Sometimes even the most qualified broker may make a bad impression. It’s highly important for you to feel comfortable around the person, who is about to start selling your business.
Don’t feel guilty for saying “no” to someone just because your gut feeling screams “no”. It’s better to find another specialist than feel uncomfortable during the process.
Choosing the right business broker may take some time. Don’t rush into making a decision if you want to achieve the best deal.
