The Way to Select the Best Business Brokers
Whether you are buying or selling a business, using a broker can make the distinction between being successful and failing. But, not all business brokers will be right for your particular situation. Use the advice below to pick the ideal broker for your requirements.
Start by asking for referrals from your business contacts and consultants. Have some of them utilized the assistance of a business broker previously? Does the broker handle the kind of situation you are facing? You may be forced to expand your search to locate qualified brokers who specialize in brokering deals similar to yours. Whenever you’ve got a list of possible brokers, now is the time to restrict your search. Following are a few of the essential factors.
Is the company or person professional? Professionalism shows itself in several ways including the presentation of marketing materials, personal appearance, language mannerisms, the website, and expertise. Use both your instinct and objectivity when analyzing their professionalism. Remember that the broker you select will be representing your business so make certain you’re very familiar with the company or person you select.
Does the broker have sufficient experience working with businesses which are like yours? While it is not a must for the business broker to have that kind of experience in your specific niche, it is useful for the broker to know the nature of your business and have some experience in brokering deals similar to yours. As an example, in case you’ve got a family-owned microbrewery, a broker that has a successful track record of brokering deals for family-owned food makers or wineries or small brewpubs.
The credentials you want to look out at a broker are training, licensing, experience, certification and membership in professional associations. Does the broker do enough research before your initial meeting? Brokers utilize business and industry reports, comparable sales and other tools to value the businesses. Your business broker must support any listing prices which are suggested and should do this in writing.
Find out just how the broker will market your business if you are selling it. Brokers employ several advertising and marketing tools. However, some favor some particular strategies over others. Make sure you ask them to supply you with a thorough marketing plan.
What sort of companies does the broker usually employ? If your company has annual earnings in $50 million range, you may require a certain sort of buyer which makes it vital to select a company broker that may bring in those high net-worth investors and people.
No matter how experienced, qualified, professional or personable a business broker might seem, be sure to check for references. The broker must supply you with testimonials of companies that are very similar to yours.