Growing a small business takes time, patience, and dedication. Entrepreneurs spend years to build a business and establish a brand. So, when the time comes to sell the business, you want to be rewarded for all these sacrifices.
However, looking for prospective buyers who will take your business for its real worth can be a challenge. This is especially true if your business is not in the in-demand sector. Additionally, the lack of experience in business-selling and connections in the local market can make the task doubly difficult.
One way to simplify business selling is by working with a business broker. Much like real estate agents, business brokers brings your company in a larger pool of buyers and assists you throughout the selling process.
Business brokers are match-makers. They bring together sellers and buyers to the table. Their expertise and experience can help significantly improve the chances of attracting prospects, overcoming challenges, and negotiating differences to finally close the deal.
While you can easily find a business broker online, choosing a reliable and appropriate business broker can a little more challenging. Aside from having the right qualifications, competencies, and track record, you want to work with a business broker that is aligned with your expectations and goals.
Choosing the Right Business Broker
When looking for a business broker, you should not settle with the first broker you find. Try to meet with as many business brokers as possible to find the best match for you sale expectations and unique needs. Interview multiple candidates so you can compare their strengths and weakness. Here are some signs of a reliable business broker.
One of the first things to look for is their credentials and qualifications. Different states have unique requirements for business brokers. However, you should look for one who has the right educational background and is certified by a recognized broker association, such as the International Business Brokers Association (IBBA). The Certified Business Intermediary designation proves that the broker has met the educational and experience requirements of the association. It also certifies that the broker conforms to the high ethical standards of the IBBA.
Prior experience in your field
Although business brokers may have the same qualifications, their experiences are not necessarily the same. For example, a business broker may have sold two restaurants while another one has previously sold utility companies. Their previous experiences are an important factor when choosing a business broker.
As a general rule, you should choose a broker who has sold a business in your sector of the same size and knows the local market. These factors play a vital role in selling your business – from understanding how the business works to looking for prospective buyers. Ideally, you should choose a broker with several years of experience in your niche.
Proven track record
A deep dive into the track record of your prospective brokers can reveal so much about them. Ask for a portfolio and verify the information contained. Positive testimonials from prior clients are good signs. You also want to make sure that there are no pending lawsuits and complaints against the broker.
An experienced Orlando Business Broker reminds sellers to check the prospective broker’s success rate. How many business deals have the broker closed over the past year? You want to work brokers with high success rate as this shows their effectiveness.
You’ll be working closely with the broker throughout the sale process. Communication is vital. As such, you want to choose a broker who is responsive, honest, and open to you. He should be willing to understand your company, your expectations, and your goals. Reliable brokers will have an established communication channels and schedule. It would help to have several communication channels, such as through email, phone, or SMS. Regular weekly updates can help you keep track of the sale’s progress.
Finally, trust your instinct. After interviewing multiple brokers, there will be someone who will stand out not solely because of his credentials and qualifications, but more so because of his personality and character. There seems a connection and mutual respect between each other. Your gut feeling tells you that this broker is the right pick.
It’s crucial that you choose a broker you feel confident in and comfortable with. Avoid brokers who are only working for profit. Your values and goals should align to ensure a successful and stress free business sale.