Whether you’re selling or buying a business, obtaining a broker on your side could lead to a successful outcome or failure. But, some business agents may not be suitable for your particular circumstance. Use the advice below to select the best broker to help with your needs.
To begin with, ask for referrals from business advisers and colleagues. Have they employed a business broker previously? Did they get satisfied with their services? Does that broker handle the kind of transaction you are considering?
You may have to widen your net to find a pool of qualified brokers that specialize in brokering deals such as yours. After getting several potential agents, it’s time to get down to business and then narrow down the field. Provided below are a few key factors to consider:.
– Is that the broker professional? Professionalism manifests in various ways including personal appearance, website, speech, mannerisms, and expertise. Use both your gut instinct and objectivity to determine that. Don’t forget that the agent you choose will be representing your business so make sure that you’re completely comfortable with the individual and firm you choose.
– Does the broker have expertise working with businesses similar to yours? While it’s not necessary for the company broker to have specific experience on your precise niche, understanding the nature of your enterprise and experience brokering deals with similar characteristics will be helpful. For example, if you operate a family-owned microbrewery, a broker with a successful track record brokering prices for small wineries or small brewpubs might not be aware of the finer points of brewing beers but might be a perfect choice thanks to experience with similar businesses.
– What credentials does the broker have? Look for certification, experience, membership in professional associations and education among others.
– Is your broker really prepared? In Other words, how did the company broker do her or his research before your initial meeting? Agents utilize similar sales, business and business reports, along with other resources to put a price on businesses. The broker should also be in a position support any suggested listing prices, and shown that in writing accompanied by documentation.
– Find out the way the broker intends to market your business if you are selling one. Agents have many tools for marketing available to market their business listings. However, some prefer to some advertising techniques over others. Ensure that you ask the agent to present a comprehensive marketing plan.
– What business types does the broker deal in? For example, if your company has annual revenues of over $50 million, you’ll need a particular type of buyer and so you need a business broker effective at attracting such high net worth investors.
– Look at references. Regardless of how professional, experienced, qualified, prepared and educated the broker seem, just check references to cover your bases. Ideally, the broker should provide you references from businesses comparable to yours.
Selecting the right broker to market your business or assist you in finding one to purchase is quite a process. Do what you can to guarantee successful results by selecting wisely.