Factors To Consider When Choosing A Business Broker
There comes a time when it is necessary to sell your business. It can be tempting for you to sell your business alone. You have to look for a business broker who is reliable. 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. Getting this information will help you to know if they able to give you good representation.
It is an added advantage to find a business broker who has sold businesses that are similar to yours. This way they know how to deal with the challenges that come up and how to close the deal on time. Also, you can come across a business broker who is not so experienced but can represent you well if they have a strong company behind them.
Make sure the business broker has the needed credentials. They need to be licensed. The broker also need to be part of associations. This will give you an idea of their involvement in the business world. They need to be well connected to bankers, attorneys and accountants.
Also, select a business broker who is open as well as responsive. They need to listen to you. This will help them understand your goals. It takes time for a business to sell. Be ready not to get good news for weeks on end. You need to agree with your choice of business broker about how often you need to be communicating.
You also need to be careful about generalists. Make sure the broker you choose fits your business. Size matters too. A broker who handles transactions worth tens of millions of dollars may not provide you with the attention that you expect if your business is worth about a million dollar.
It is important to know in advance what the process will entail. You need to know how to value the business and follow through. Also, ask the broker what they intend to do to keep you appraised. The business broker needs to provide you with weekly status reports and updates.
Business brokers usually work on commission. Don’t choose brokers who request for money upfront. They usually charge a 10 percent commission. This figure can also be negotiated. Compare the rates of different business brokers for you to choose one who fits your needs.You will spend a long time with the broker.You need to give a broker a reasonable time for them to perform.