If you are selling or buying a business, a broker can make a big difference between a successful or unsuccessful outcome. Not all business brokers will right for your particular circumstance. Use the advice below to choose the perfect broker for your specific needs.
Start by asking for referrals from your inner circle of business consultants and coworkers. Have any of them used a business broker before? Were they satisfied with the services? Does the broker deal with the sort of business you are thinking about? .
You may require to broaden your net to find a pool of competent business agents that specialize in brokering deals such as yours. As soon as you’ve got some potential agents, it is time to get down to business and narrow down the number. Below are several key factors to put into consideration:.
1. Is the Professional? Professionalism shows in many kinds of ways including the appearance, the presentation of marketing materials, language, mannerisms, and experience. Use both objectivity and your gut feeling. Keep in mind that the agent you select will be representing your business, so ensure you are comfortable with your choice.
2. Does the broker have expertise working with businesses similar to yours? It not always necessary for your broker to have experience in your specific niche but it is very helpful for the broker to comprehend the nature of your company and have expertise brokering deals with comparable features. For instance, if you operate a microbrewery, an agent with a successful track record brokering prices for smaller wineries, family-owned hotel, or smaller brewpubs might not understand the finer points of brewing beers but be the best choice due to their experience with similar companies.
3. What credentials does the Broker have? Look for certification, education and experience.
4. How prepared is the broker? Did the company broker do his or her research before your first meeting? Brokers utilize industry and company reports, and other tools for pricing companies. Your company broker needs to have the ability to support any listing prices, that needs to be shown in writing, together with proper documentation.
5. Should you be selling your business, then you should find out how your agent intends to advertise your company. Brokers have many marketing tools available for marketing of business listings. However, some prefer using some specific advertising techniques than others. Ask your broker to make a detailed presentation of their marketing plan.
6. What Kind of businesses does the broker work with? For instance, if your business has annual revenues in the range of $50 million, you will require a particular kind of buyer which makes it essential to select a company broker who is capable of bringing those high net-worth individuals and investors onboard.
7. Check references. No matter how educated, professional, experienced, qualified, and ready the broker looks, check their references. Ideally, the broker should provide testimonials from companies similar to yours.
Choosing the best broker to market your company or assisting you to find a business to purchase is a process. Do your part by choosing wisely to ensure that you bring the best broker onboard.