Tips To Help You Choose A Business Broker
There comes a time when it is necessary to sell your business. It may be tempting to sell your business by yourself. You will need to hire a reliable business broker. It is not easy to pick the right broker. Read on to get tips to help you settle for the right business broker.
It is important to consider a business broker with experience. Get to know the number of years they have provided theirs services. It is also good to know how many deals they have closed yearly. 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 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.
Ensure that the business broker has the right credentials. They need licensing. They need to also be part of organizations. 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 should be able to listen. This is for them to know your goals. It takes time for a business to sell. It is normal not to get any news for several weeks. 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 also matters a lot. A broker who is used to handling transactions that are worth tens of millions of dollars will not give you the attention you need if your business is just worth about a million dollars.
It is important to know in advance what the process will entail. You need to know how to value the business and follow through. You need to know how the business broker will keep you appraised. You need to get weekly status reports, updates and calls.
Business brokers usually 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.You will spend a long time with the broker.You need to give a broker a reasonable time for them to perform.