How To Ensure The Best From Your Business Broker
Business brokers can be a blessing or a curse, so it’s important that you find one that will work for you.
What makes a good business broker
Business brokers can be a valuable asset when buying or selling a business. A good broker will be there every step of the process to ensure a smooth transaction. They will get to know the buyer, seller, and business inside out.
It’s important to remember that in most cases the business broker will be paid by the seller and not the buyer. Although, a bad business broker can negatively impact both sides, so it’s best for all parties that you choose your broker well.
Things to check when choosing a business broker
When you are choosing a business broker here are some things you should check before you hire them –
Background – what industries have they worked in? What is their success rate compared to their total number of jobs? Have they been involved in any legal proceedings and why?
Figures – How do they determine the value of the business? What sort of fees will they charge? Most brokers work on commission based on the final selling price of the business, make sure you are not faced with hidden additional charges
- Involvement – A good broker will want to oversee every stage of the process, they will be hands on and easy to contact
- Reputation – speak to previous clients and find out their experiences , search online for them and see what you can find
How to get the best from your business broker
A business broker gets paid by the seller, so therefore it is imperative that the broker and the seller develop a good business relationship –
- Trust their experience – they have the experience and insight that you may not have, question what they say but do not complete disregard everything you don’t like
- Negotiate and compromise – any relationship, including professional, requires both side to come together to achieve success, in order to get the most value from your broker it is best to work with them rather than against them
- Be willing to let go of expectations – sometimes what we want and what we can realistically get do not match, brokers are not miracle workers
- If things do go wrong, speak up – if you genuinely believe that your business broker is not carrying out there end of the agreement then speak up
Do I need a business broker?
A business broker is not essential; it is possible to sell your business without using one. However, people choose to use one because they don’t know how to go about selling their business.
By selling a business on your own, financially you can be better off. However, it is then down to you to handle all the legalities, paperwork, marketing, etc yourself. Selling a business yourself can be extremely time consuming and complex.
If you do decide to sell your business yourself ensure that you do your research and seek advice where necessary.