How to Pick the Best Business Brokers
Whether you are selling or purchasing a company, using a broker can make the difference between failing and being successful. But, not all business brokers will be right for your particular situation. Use the advice below to pick the ideal broker for your requirements.
Start by asking for referrals from your business contacts and consultants. Have some of them utilized the assistance of a business broker previously? Does the broker manage the type of situation you’re facing? You might need to widen your search to find qualified brokers who specialize in brokering deals similar to yours. You can narrow down your search when you have a list of possible brokers. Below are some of the critical considerations.
Is the company or person professional? Professionalism shows itself in several ways including the presentation of marketing materials, personal appearance, language mannerisms, the website, and expertise. 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? While it is not a must for the business broker to have that kind of experience in your specific niche, it is useful for the broker to know the nature of your business and have some experience in brokering deals similar to yours. For example, if you have a micro-brewery is family-owned, a broker with a successful track listing brokering deals for family-owned wineries or wineries or small brewpubs.
The qualifications you need to look out in a broker are education, licensing, experience, certification and membership in professional associations. Does the broker do adequate research before your initial meeting? Brokers employ comparable sales, business and industry reports, as well as other resources to value the firms. Your company broker must support any suggested listing prices that must be shown 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 regardless of how personable, professional, qualified or experienced a business broker may seem. The broker ought to provide you with references of enterprises that are similar to yours.