Whether you’re selling or selling a company, having a broker with you can make a difference between a successful outcome and a nightmare. Not all brokers fit in your situation. Use the advice below to choose the perfect broker for your specific needs.
Begin by asking for referrals from your inner circle of business consultants and coworkers. Have some of them employed a business broker in the past? Were they satisfied with the services? Does the broker deal with the sort of business you are thinking about? .
You need to find a pool of qualified firm brokers that specialize in brokering deals similar to yours. Once you have several potential brokers, it’s time for serious business and narrowing down your list. Below are several key factors to put into consideration:.
1. Is the person or company professional? Professionalism is exhibited in numerous ways including the demonstration of marketing materials, the appearance, language, mannerisms, and experience. Use your gut instinct alongside objectivity to judge that. Keep in mind that the agent you select will be representing your business, so ensure you are comfortable with your choice.
2. Does the broker have experience in your kind of business? It not always necessary for your broker to have experience in your specific niche but it is very helpful for the broker to comprehend the nature of your company and have expertise brokering deals with comparable features. By way of example, if you run a brand new microbrewery, a agent with a successful track record brokering deals for small wineries or brewpubs might be the best choice because of their experience in similar businesses.
3. What credentials does the Broker have? Start looking for education, certification, experience, and membership in professional bodies.
4. How prepared is the broker? Did the company broker do his or her research before your first meeting? Brokers utilize company and industry reports, alongside other resources to value businesses. Your business broker should be able to support any suggested listing costs, which should be shown in writing, with documentation.
5. If you are currently selling your business, find out how the broker plans to market your enterprise. Agents have many advertising tools available to promote their business listings. Some prefer some marketing strategies over others. Make sure that you request the broker to present a detailed marketing plan that they will use.
6. What Kind of companies does the broker deal with? For instance, if your business has annual revenues in the range of $50 million, you will require a particular kind of buyer which makes it essential to select a company broker who is capable of bringing those high net-worth individuals and investors onboard.
7. Check references. No matter how educated, professional, experienced, qualified, and ready the broker looks, check their references. The agent should give you references from businesses with similarities to yours.
Choosing the best broker to market your company or assisting you to find a business to purchase is a process. Do what you can to ensure a successful outcome by making a wise choice.