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 should identify a reputable business broker. It can be hard to identify 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. Also, ask about the deals 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 for you to look for a business broker who has specialty in your area of business. Such a broker is in a better position to help you close the deal much faster. Also, you can find a broker who is newer in the industry and give you good representation provided they have a reliable company behind them.
You need a business broker with the right credentials. They should be licensed. They need to also be part of organizations. You will get to know how involved they are in the business community. They need to be well connected to bankers, attorneys and accountants.
Also, the business broker you choose needs to be open and responsive to you. They need to take their time to listen to you. This is for them to know your goals. It takes time for a business to sell. You may not get any news for weeks. You need to decide on how often you should be communicating.
It is advisable to avoid genralists. Make sure the broker you choose fits your business. Size is also an important factor. 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. You need to know how to value the business and follow through. You need also to discuss with the business broker how they will keep you appraised on transaction status. You should also get updates, calls and weekly status.
Business brokers usually work on commission. A broker who asks for money upfront is not genuine. Brokers charge 10 percent commission. However, you can negotiate this figure. Make comparisons of rates of various brokers for you to choose one who is affordable.You will spend a long time with the broker.If they don’t show you the potential to sell your business, choose a different broker.