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.
Begin by asking for referrals in the close circle of business consultants and coworkers. Have some employed a business broker before? Were their services satisfactory? 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. Once you have several potential brokers, you can go down to business and then to the field. Here are a few crucial factors to think about:.
– Is the person or company professional? Professionalism manifests in various ways such as the presentation of marketing materials, appearance, and mannerisms among others. Use both your gut instinct and objectivity to determine that. Remember, the broker you pick t will be representing your business so ensure you are comfortable with your choice.
– Does the broker have experience working with businesses like yours? It doesn’t have to be experienced in your exact niche but it is helpful for the broker to understand the character of your business and have expertise brokering deals with similar characteristics. For instance, if you operate a family microbrewery, a broker with a great track history brokering prices for smaller wineries, even family-owned specialty food makers, or little brewpubs might not understand the finer details of brewing beers but might be a superb choice due to experience with similar businesses.
– Is the broker qualified? Look out for accreditation, education, experience, as well as membership in professional associations.
– How prepared is the broker? 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 instance, if your business has annual revenues from the range of several million dollar range, you may want a special sort of buyer and that makes it even more important to choose a business broker capable of attracting high net worth investors.
– Check out references. Regardless of how professional, experienced, qualified, prepared and educated the broker seem, just check references to cover your bases. The broker should provide you references from businesses which are comparable to yours.
Selecting the proper broker is a process. Do what you can to guarantee successful results by selecting wisely.