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How To Find a Good Business Broker?
If you are considering selling your business and decided to find a good Business Broker, you are on the right track. Many business owners get turned off by the high commissions brokers charge but do not realize the greater value added that broker’s provide. The most important value adds are a higher probable selling price and access to a larger pool of ready buyers. This translates to more money in your pocket in a shorter time frame.
The capabilities and knowledge of Business Brokers can vary widely and you should find one that matches the level of sophistication needed to transact your business. There are those that are comfortable selling ice-cream shops or pizza parlours, then there are those that transact larger businesses up to mid market level. To find a good Business Broker, start by educating yourself in all the aspects to sell a business. It would be ideal to have a decent grasp of business fundamentals and the selling process before you can assess the quality of a Business Broker. Start by reading this website, searching on Google on other sites, and talking to people who sold their business before.
After you have familiarized yourself with the business sale process, start talking to a couple of Business Brokers. You can either ask people you know or look in a directory. These days, you can also just Google it, although some results may not be in your geographical area. Or you could speak to me as I happen to be a great Business Broker.
Here’s a checklist of things you would want to be aware before you choose your broker:
1) Make sure the Business Broker is knowledgeable and a real business person.
There are many real estate agents masquerading as Business Brokers and they have no clue about accounting, finance, business management or the process to sell a business without potentially messing it up. Many Business Brokers hold real estate licenses, but have minimal understanding of accounting and finance or the proper process to sell a business. They are really just Realtors.
2) Find a Business Broker you can trust and operate with integrity.
“Flexible” brokers may be appealing to you in the beginning as they advise you to buffer your financial figures, hide certain disclosures, or give you a BS high valuation just to get a listing. If they operate with such low integrity, what makes you think they won’t do it against you? To find a good Business Broker who works professionally and with integrity is for your own benefit. You do not want to hide or fluff things up because they almost always show up during buyer due diligence and it always kills the deal. A dollar in the pocket is much better than zero.
3) Find a Broker who is methodical on the transaction process yet flexible as a deal maker.
The worst thing to happen is to waste a year with a Business Broker who is fixated on the rigid process and ends up deal killing. You want to find a good business broker who is familiar with the process and structures of a transaction but yet flexible enough to be the deal maker.
These are just 3 of the many tips on how to find a good Business Broker. If you like to find out more and get a free business valuation estimate at the same time, send me an email.