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How to Pick the Best Business Brokers
Whether you are buying or selling a business, using a broker can make the distinction between being successful and failing. But, not all business brokers will be right for your particular situation. Use the tips below to select the best broker for our needs.
Begin by requesting for referrals from your business contacts and advisers. Have any of them used the services of a business broker in the past? Does the broker handle the kind of situation you are facing? You may have to expand your search to locate qualified brokers who specialize in brokering deals very similar to yours. When you have a list of potential brokers, it is time to narrow down your search. Below are some of the critical considerations.
Is the firm or individual professional? Professionalism displays Itself in numerous different ways such as the skills, language mannerisms, the website, personal appearances, and presentation of advertising materials. Use both your instinct and objectivity when analyzing their professionalism. Remember that the broker you select will be representing your business so make certain you’re very familiar with the company or person you select.
Does the broker have enough experience working with enterprises which are similar to yours? Although it isn’t a must for the business broker to have the sort of experience in your specific sector, it’s useful for your broker to know the nature of your enterprise and have some skill in brokering deals very similar to yours. For instance, if you have a family-owned microbrewery, a broker who has a successful track record brokering deals for family-owned food manufacturers or wineries or small brewpubs.
The qualifications you want to check in a broker are licensing, education, experience, certification and membership in professional associations. Does the broker do enough research before your initial meeting? Brokers utilize business and industry reports, comparable sales and other tools to value the businesses. Your business broker must support any listing prices which are suggested and should do this in writing.
In case you are selling your company, find out how the broker will market it. Brokers utilize numerous marketing tools. However, some favor some particular strategies over others. Ensure that you ask them to give you with a detailed marketing plan.
What type of companies does the broker normally work with? If your company has annual earnings in $50 million range, you may require a certain sort of buyer which makes it vital to select a company broker that may bring in those high net-worth investors and people.
Check for references no matter how personable, professional, qualified or experienced a business broker might appear. The broker must supply you with testimonials of companies that are very similar to yours.