Choosing a business broker is the most important choice you will make after you have decided to sell your business. For this reason, asking him or her the right questions to ensure a proper ‘fit’ is vital to choosing the ideal business broker.
Six Questions to Ask when Choosing a Business Broker
Here are six questions to ask a broker you are considering hiring:
Ask the potential business broker about his or her background and experience. The correct answer will include a variety of skills, including valuation, legal issues, marketing, and negotiation. Only experience can teach these skills.
Ask the business broker about the services he or she offers. 2 What services do you provide? Be cautious to review these services offered carefully and not be swayed by the hype of some brokers. Often, local business brokers best know and understand local businesses. Also check references of these business brokers.
Ask the potential business brokers which associations they belong to. Many business brokers are members of the International Business Brokers Association (IBBA), but more importantly are they a member of the Business Broker of Florida. This is the local multiple listing service for businesses. This will expose your business to over 1000 brokers in the state of Florida all looking for businesses for their buyers. .
Ask the potential business broker if you can speak to the owner of the firm. If this brokerage firm is invested in its clients and work, the owner will be as well.
Ask the business broker how their company screens or pre-qualifies buyers. When selling a business, confidentiality is key, and all potential buyers must be pre-screened and qualified before moving too far into the sales process. Understanding how the business broker’s firm makes the qualifications is vital before moving forward in the sales process.
Ask the potential broker how he or she intends to market the business. This is key to determining how committed they are to selling your business. The business broker should be able to detail the marketing process they use to sell businesses and should have a written plan that they can provide to you.
Asking these important questions can help ensure the proper client/broker fit. This, in turn, will help ensure a quick and streamlined sale of your business.