If you own a business or would like to someday, a good broker may be your best friend. Brokers work by helping people who want something find people who are selling it and vice versa. There are actually business brokers too. So if you want to buy a business or sell yours, you may want to think about soliciting the help of a business broker.
What to Look for in a Business Broker
Not all business brokers are created the same, but they’ll all have a huge effect on your acquisition or sale. So it’s important that you take time to consider your options.
First, understand that once you start working with a business broker, you’re no longer an independent entity. This person will be representing you in the industry. Believe it or not, when you want to buy a company, your bank account isn’t the only thing that gets considered. Likewise, when you’re selling, having a valuable company is just part of the equation. You want a business broker you’ll be proud to partner with and confident will represent you appropriately.
Second, be clear—down to the letter—what the relationship will entail. They should be specific about their fees and costs, so you don’t wind up with issues after such an important financial transaction. You also want to make sure you’re clear with them about what you want from the process. Otherwise, no broker will be able to make you happy.
Now let’s take a look at how they help.
This is probably one of the best reasons to use a broker if you want to sell your business. If word gets out you’re thinking about selling, there can be deleterious consequences. You need to consider what would happen if your competitors, suppliers, employees and customers got word.
Even if you’ve been in the industry for a while now, business brokers will probably be able to get your business more exposure to all kinds of buyers, assuring you a better price. Unfortunately, just because you’ve been successful doesn’t mean you’re aware of all your options. Many brokers even know how to look out of state or in other countries to get you the best possible price.
The same is true for people looking to buy a company. Brokers probably know more business owners than you do and, considering the confidentiality talking point, they may know people who want to sell but aren’t making it public.
If you’re putting your business up for sale, you better get accustomed to sifting through a lot of offers and, unfortunately, not all of them will be worth your time.
If you’re hoping to buy a business, you’re going to face the same issue. Many owners will give you unreasonable quotes and otherwise waste your time.But a broker gets paid to handle these issues. So you’re free to continue handling your own affairs while they look into yours.
As a business broker myself, I can help you sell or buy a business by providing the above benefits. I can also help you learn more about the process, so you know what to expect.