Ways of Choosing the Best Business Brokers
Whether you are selling or buying a business, using a broker can make the difference between being successful and failing. But, not all business brokers will be right for your particular situation. Use the tips below to select the best broker for our needs.
Start by asking for referrals from your business contacts and consultants. Have any of them used the help of a business broker previously? Does the broker handle the kind of situation you are facing? You might need to widen your search to find qualified brokers who specialize in brokering deals similar to yours. Whenever you’ve got a list of possible brokers, now is the time to restrict your search. Below are some of the critical considerations.
Is the firm or individual professional? Professionalism shows itself in several ways including the presentation of marketing materials, personal appearance, language mannerisms, the website, and expertise. Utilize both your intuition and objectivity when assessing 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 compulsory for the business broker have type of expertise in your particular field, it’s beneficial for your broker to be aware of the nature of your company and have some expertise in brokering deals very similar to yours. As an example, in case you’ve got a family-owned microbrewery, a broker that has a successful track record of brokering deals for family-owned food makers or wineries or small brewpubs.
The qualifications you want to check in a broker are licensing, education, experience, certification and membership in professional associations. Does the broker do enough 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.
Find out just how the broker will market your business if you are selling it. Brokers utilize numerous marketing tools. However, some favor some particular strategies over others. Be sure to ask them to provide you with a detailed marketing plan.
What sort of companies does the broker usually employ? 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.
Check for references no matter how personable, professional, qualified or experienced a business broker might appear. The broker ought to provide you with references of enterprises that are similar to yours.