Are you planning on selling your business or buying one? It takes more than just simple research or posting of your sale online. After all, a business is a result of years of dedication and work, so you want to ensure that you get the best offer.
Unfortunately, it may be difficult finding a buyer to purchase your business, especially if you’re not part of hot industries. That’s why it’s crucial to know your stuff and hire an adequate business broker, who can do the job for you.
However, how can you select the reputable one for you? Read on as I show you the six important tips on how to find the right broker for your business.
What’s a Business Broker?
Business brokers are similar to real estate agents. However, they don’t buy and sell houses for clients, but they do so for businesses. They are the ones who are the matchmakers to buyers and sellers to businesses. Many hire brokers if they want to sell their business or purchase one at a good price, provided that they are paid for it, too.
Business brokers are beneficial because they have a wider audience and experience to sell businesses at the highest possible price. They are also able to find the best offers and deals to buyers, depending on what they need in a business. They are beneficial to quicken the selling or buying process.
Six Tips on How to Find the Right Broker For Your Business
Finding the right broker can be tough with the many available in your area alone. To help you out, follow these six tips:
1. Get Referrals and Check the IBBA
Before anything else, make sure that you check out referrals and ask trusted sources for reputable business brokers. You can ask your accountant, lawyer, peers, or the industry associations for names of honest, effective business brokers.
You can also check the IBBA, which is the International Business Brokers Association. This is a trade association of business brokers, with over a thousand business intermediaries worldwide. You can check their website for more information and names of licensed brokers around your area.
2. Know Their Background and Experience
Just like searching for other professionals like accountants, lawyers, or doctors, it’s best that you do a background check. Have a list of potential business brokers to hire and research on their experiences and background. Examine their credentials, check if they are really licensed, and look into their past transactions and clients.
Find out their success rate and if there have been any complaints or lawsuits against them. Also, see if they have handled selling businesses from your industry. You can investigate the references from the Better Business Bureau.
3. Find Someone Dedicated
I highly recommend that you find a full-time business broker rather than an agent who works part-time. You are assured that these kinds of brokers spend their time selling businesses and will prioritize it, adding more value than finding the quickest deal without much value.
Full-time and experienced business brokers have the network of contacts to sell businesses to, as well as understand the principles of business value and selling. Get someone who’s dedicated to his profession and is willing to take his time to sell it for you.
4. NO Upfront Fee and Avoid Pressure
Business broker fees depend on the broker you hire, though it usually ranged between 10-15% of the sale price of your business. This is given only after the sale, so avoid hiring business brokers who ask for large upfront fees before assessing your business’ value and/or starting the application process.
Furthermore, don’t hire or allow your business broker to put you under pressure. Selling and buying businesses is a complex process that requires time for more understanding, both personally and professionally.
5. Deliver the Attractive Marketing Plan
Selling revolves around marketing, especially when it comes to selling a business worth millions. That’s why it’s important that you have an efficient and attractive marketing plan that motivates and entices as many buyers as possible.
Not only should you think of a marketing plan, but your business broker should have the detailed one as well, including everything buyers need to know, as well as advertising strategies for more reach.
6. Keep It a Secret
Last but not least, a business broker must respect the secrecy of the sale, if requested. If people in or out of your business find out about the sale, it may have you lose staff and suppliers, losing business value during the process.
Selling a business is highly confidential and your business broker should know that, having the safeguards in place to protect the company.
Wrapping It Up
When you’re selling your business, it’s best to leave it to a professional who can handle all queries and find the best deal for you. That way, you won’t have to feel intimidated by the complex process and still get your money’s worth! And with professionals like the TPS Toowoomba Business Brokers, you can get a sale or find the right business for you even faster.
I hope that this article on how to find the right broker for your business gave you an idea of what steps to take. So don’t wait any longer and start finding the adequate broker today!
If you have any questions or want to share your tips and experiences on finding a broker, then comment below. Your thoughts are much appreciated.