How to Choose a Business Broker

How to Choose a Business Broker

Posted on October 01, 2017

1. Know up front what your expectations are in a Business Broker who will be selling your business.  Make sure you discuss and convey those expectations to the business broker you select.  Direct and open communications about expectations and other issues with your business broker is critical in selling your business.

2. Ask the Broker how they are going to advertise and get the word out about the your business for sale.  Make sure they allocate an adequate budget for advertising and marketing to sell your business.

3. Have the Business Broker determine the valuation of your business before you sign a listing agreement.  Ask them about a cash price vs. a price with terms involved.  There are many ways to structure a deal - you need a business broker who can be honest with you and discuss these variances with you.

4. Ask the Business Broker how they are going to keep the sale of your business confidential and still market it.  Make sure the business broker is using a professional Confidentiality Agreement and has other methods of confidentiality protection.

5. Make sure the Broker you select has prepared your business for the marketplace.  Are the financials in good order?  Did the broker prepare a professional Business Profile?  Is the broker using any marketing techniques to make your business stand out from the crowd?

6. Make sure the Broker is comfortable with selling your type and size of business.  This is probably one of the most important business decisions most owners make.  Make sure you do your homework on the broker and the company.

7. Time kills deals.  Make sure the business broker you select is responsive in getting things accomplished and moving things along.  Deals tend to go south when parties aren't moving forward on a deal at all times.

8. Make sure you pick an Business Broker who spends the needed time on your business for sale.  Some brokers take on too many listings knowing that some may not sell - it's a numbers game to them.  You need someone who understands your business, what your expectations are, and who can properly get your business sold!