How to Find the Right Business Broker
Having a business broker in your corner when selling your business is important, but perhaps what’s even more important is having the RIGHT business broker for you and your business. It may take a little work in the early stages to find the right business broker you and your business, but it will be more than worth it in the long run.
So, what should you be looking for when vetting business brokers?
Prior Experience
You’ll want to seek out a broker who has experience selling businesses similar to yours. Each industry is different, and you’ll want guidance from someone who knows the ins and outs of your industry.
Time to Devote
Avoid at all costs a broker who has a huge number of listings to manage. For one, that isn’t good practice. For another, the more listings that have, the less time they’ll be able to devote to selling your business. In this case, less is better.
Valuation Method
Find out how the broker values a business. As each business, and industry, is unique a generic formula isn’t going to cut it. A good broker wants your business to sell just as much as you do, and they will make sure that the asking price is right to ensure that happens.
Number of Qualified Buyers
Sure, any broker can say they have thousands upon thousands of potential buyers at their disposal, but chances are it’s not true. What they probably have is a generic email list they’ve obtained and don’t know a single one personally. This does you no good. Your buyer may only know of 20 qualified buyers, but that’s a lot more valuable to you than a blind list. In this case, quality trumps quantity.
Marketing Strategy
Find out what type of marketing strategy does the broker plans to employ to sell your business. There should be a comprehensive plan in place that they will execute. Your business not only needs to be promoted properly, but promoted to target and qualified buyers.
Comfort Level
If you’ve been able to check off everything on your list so far, one of the last pieces of the puzzle is an overall comfort level. This is more of a “go with your gut” type of decision. How does he/she make you feel about the process? Are they someone you feel like you can trust and be open with? Make sure the comfort level is there before you make your final decision.