Selling your business or purchasing your next venture can be time-consuming and stressful, but it does not have to be. That is if you partner with an established Business Brokerage. Business Brokers have been busy coordinating the sale and purchases of businesses since the start of 2001 when increases in business sales saw an increase.
Business Brokers Plus has put together a great list of tips to find the best Business Broker. Keep reading to learn some helpful tips for when it is time to sell your business.
1: Check the Brokers Qualifications
There are some important factors to look for when reviewing the qualifications of a Business Broker. There is some good news. Most Business Brokers have bought and sold businesses of their own before. This means that the broker has an understanding of what it is like to be in both places of the deal. A qualified business broker will typically have both experience and education in accounting, finance, sales and marketing, operations, and other areas of business management.
Your Business Broker should have a proven process that gets results, including a marketing plan to achieve success.
Check for the following when reviewing their qualifications:
- Does the broker have 10 years of business brokerage or M&A industry experience?
- How many clients does the broker work with within a given year?
- The number of transactions that the Business Broker closes per year.
2: Review the Brokers Listing Agreement
The small details make a big difference. Do not overlook this part of your decision-making process when choosing a Business Broker. There is a lot to learn about a business brokerage firm from reviewing their listing agreement.
Keep the following in your mind when reviewing the listing agreement:
- How clear and concise is the document. It should have consistency throughout the document and not have intimidating wording or is overly punitive.
- Is the Business Broker using what seems to be a boilerplate template? That is a good sign that the brokerage firm is not a well-organized operation.
- Check what is included. Be sure to review the scope of the work outlined in the agreement.
- How easy it is for either party to terminate the agreement? Make sure that there is not what is known as a break-up fee in the contract.
- Get a second set of eyes on the contract before signing. It is highly recommended that you have your attorney review the contract. That is just smart sense for any business transaction of this size.
3: Ask For References
References are a must. Most good business brokerage firms are willing to provide a number of past clients that will share their opinion of working with the firm. The best idea for your is to always check for other businesses that have been sold within your market.
4: Interview More Than One Business Brokerage Firm
Just like you would recommend that your child applies to more than one university, you will want to do the same thing with a prospective business brokerage firm. You should interview a minimum of three business brokers before choosing someone to work with. It is very important to find the right Business Broker to sell your business.
5: It’s a Partnership
You will likely be working with the brokerage firm for up to a year, so it is important to find one that you enjoy working with. Selling your business can cause a whirlwind of emotions. A business brokerage firm will be there to be your biggest supporter during this process. There will be a lot to do, but the expertise of the brokerage firm will require a strong partnership.
Business Brokers Plus is here to help you buy or sell your next business. Please contact us today to learn more about how we can help.
