Tips To Help You Choose A Business Broker
There are various reasons why people decide to sell their business. It may be tempting to sell your business by yourself. You have to look for a business broker who is reliable. The challenge is in identifying the right broker from the many who exist. Below are essential things to consider when looking for a business broker.
It is crucial to choose an experienced business broker. You need to know how many years they have been operational. Get to know the number of deals that they have closed every year. By knowing all this, you will get to know if they do quality work and they are able to represent you well.
It is a plus to select a business broker who specializes in your kind of business. This shows that they are able to deal better with the challenges that arise and close the deal within the given time. Also, you can come across a business broker who is not so experienced but can represent you well if they have a strong company behind them.
Make sure the business broker has the needed credentials. They need to be licensed. They need to also be part of organizations. You will get to know how involved they are in the business community. They need to be well connected to bankers, attorneys and accountants.
Also, choose a business broke who is responsive and open. They need to take their time to listen to you. They need to understand your goals. Keep in mind that it can take time to sell a business. Be ready not to get good news for weeks on end. You should agree on the number of times to communicate.
You should avoid generalists. You need to be sure that you select a broker that is fit for your business. Size also matters a lot. A broker who handles transactions worth tens of millions of dollars may not provide you with the attention that you expect if your business is worth about a million dollar.
It is important to know in advance what the process will entail. Get to know what will be involved in valuing your business, making preparations for sale, identifying potential buyers and how to follow through. Also, ask the broker what they intend to do to keep you appraised. You need to get weekly status reports, updates and calls.
Business brokers rely on commission. Don’t choose brokers who request for money upfront. They usually charge a 10 percent commission. However, you can negotiate this figure. Compare the rates of different business brokers for you to choose one who fits your needs.It take almost a year to sell a business so expect to have a long relationship with the broker.You need to give a broker a reasonable time for them to perform.