The Way to Select the Best Business Brokers
Whether you are buying or selling a business, using a broker can make the distinction between being successful and failing. However, not all business brokers will be perfect for your individual circumstance. Use the advice below to pick the ideal broker for your requirements.
Begin by requesting for referrals from your business contacts and advisers. Have any of them used the services of a business broker in the past? Does the broker deal wit the type of situation you are facing? You may have to expand your search to locate qualified brokers who specialize in brokering deals very similar to yours. When you have a list of potential brokers, it is time to narrow down your search. Below are some of the critical considerations.
Is the firm or individual professional? Professionalism displays Itself in numerous different ways such as the skills, language mannerisms, the website, personal appearances, and presentation of advertising materials. Use both your instinct and objectivity when analyzing their professionalism. Keep in mind that the broker you pick will be representing your enterprise to ensure that you are quite comfortable with the firm or individual you pick.
Does the broker have sufficient experience working with businesses which are like yours? Although it isn’t a must for the business broker to have the sort of experience in your specific sector, it’s useful for your broker to know the nature of your enterprise and have some skill in brokering deals very similar to yours. For example, if you have a micro-brewery is family-owned, a broker with a successful track listing brokering deals for family-owned wineries or wineries or small brewpubs.
The qualifications you need to look out in a broker are education, licensing, experience, certification and membership in professional associations. Does the broker do adequate research before your initial meeting? Brokers utilize business and industry reports, comparable sales and other tools to value the businesses. Your business broker has to support any proposed listing prices which must be presented in writing.
In case you are selling your company, find out how the broker will market it. Brokers employ several advertising and marketing tools. However, some favor some particular strategies over others. Make sure you ask them to supply you with a thorough marketing plan.
What type of companies does the broker normally work with? In case your business has annual revenues in the $50 million range, you will require a particular kind of buyer making it vital to pick a business broker that can attract those high net worth investors and individuals.
No matter how experienced, qualified, professional or personable a business broker might seem, be sure to check for references. The broker must supply you with testimonials of companies that are very similar to yours.