Factors To Consider When Choosing A Business Broker
There comes a time when your business grows and you have to sell it for you to move to your next chapter in life. It may be tempting to sell your business by yourself. You should identify a reputable business broker. The challenge is in identifying the right broker from the many who exist. Read on to get tips to help you settle for the right business broker.
It is vital you choose a business broker with experience. Get to know the number of years they have provided theirs services. Get to know the number of deals that they have closed every year. This will help you know if they are reliable.
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, a broker who is relatively new in the industry can represent you well provided that they have a strong company behind them.
Make sure the business broker has the needed credentials. They should be licensed. Get to know the organizations and other groups that they are a part of. This will provide you with an idea of their involvement in business. They should be connected to professionals like accountants, attorneys and bankers.
Also, select a business broker who is open as well as responsive. They need to listen to you. They need to understand your goals. It takes time for a business to sell. It is normal not to get any news for several weeks. You need to decide on how often you should be communicating.
You also need to be careful about generalists. Identify a broker who is ideal for your business. Size also matters a lot. If your business is worth a million dollars, it does not make sense to choose a business broker who deals with transactions that are worth tens of millions of dollars.
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. You need to know how the business broker will keep you appraised. You should also get updates, calls and weekly status.
Business brokers work 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.Your will have a lengthy relationship with your broker.The broker you choose needs to deliver within a reasonable time.