Choose a Business Broker

Successful Deals Are Teamwork

Regardless of your level of knowledge and experience in the business, there are some aspects of buying and selling. Selling a business requires professional advice from a specialist. Instead of viewing these costs as undesirable, you should see them for what they are: a top-notch team of skillful deals that will save you time, money, and unnecessary stress.

A finance specialist will help you find solutions to financing problems and advise on minimizing tax liabilities, while a business lawyer will negotiate on your behalf, identify risks, ensure legal compliance and draft a flawless contract. Moreover, by delegating responsibility for the complex elements of the transaction to professionals, your time is freed up to focus on maintaining your day-to-day business and income.

Why Use a Business Transfer Agent or Business Broker?

While business agents and brokers predominantly act on sellers’ behalf, maintaining a contact base of serious potential buyers is in their best interest. Therefore, whether you are a buyer of a business or a seller of a business, it makes sense to establish contact with them for the following reasons:

A good business transfer agent:

Has exceptional market knowledge across regions and sectors and access to extensive business transactions. Databases that provide them with benchmarks to determine a realistic valuation

Acts as an intermediary between buyers and sellers, vetting potential buyers and ensuring that sellers are only introduced to pre-qualified buyers who have demonstrated proof of financial support and signed a confidentiality agreement. Offers sophisticated marketing and advertising services that present your business in the best possible light and have the necessary tools and resources to establish direct contact with a vast base of potential buyers.

Acts as an experienced negotiator who knows and can overcome common obstacles to secure the best possible price

You’ll find that all of these benefits, as well as the resulting money saved on wasted time and gained from maximizing the selling price, more than outweigh the cost of the agent’s or broker’s commissions. You’ll find that all of these benefits, as well as the resulting money saved on wasted time and gained from maximizing the selling price, more than outweigh the cost of the agent’s or broker’s commissions.

How to Find a Good Business Transfer Agent or Broker

Nowadays, it’s common practice to turn to the internet when looking for anything from vacation deals to plumbers, so by all means, do an internet search to identify agencies and brokers in your area. However, a brilliant website is not always a guarantee of top-notch service, just as the size of the company is not always a guarantee that you will be allocated an experienced consultant, and the location of the company is not always a guarantee that brokers have the best knowledge of the market.

Ask for a recommendation.

The best way to find a top-notch business transfer agent or broker is through a referral, either

through someone who has used their services as a client or through another professional advisor who

has worked with them on previous successful transactions.…

1. Choice. Do not rush to make your choice. Take the time to talk to a few brokers to get an idea of how they work and how much they charge. All good brokers will happily provide you with a free initial consultation with no obligation or for a nominal fee. And get at least three offers.
2. Industry experience. Choose a broker that has proven experience in your industry. Some brokers specialize in specific markets or sectors. It doesn’t make sense to sell your restaurant through a broker specializing in selling nursing homes. Ask about their contact database as well as their technical expertise.
3. Recommendations. Ask to see recommendations and reviews from named customers. If possible, talk to previous customers to see what they thought.
4. Credentials. Check what credentials the broker has. Some of them may be members of the International Business Brokers Association, which at least ensures that they act by a professional code of conduct.
5. Marketing strategy. Ask about their methodology for marketing your business and ask to see samples of printed literature and sales details for other companies. Good brokers should offer a customized marketing strategy – your business should stand out.
6. Experience. Be sure who will act on your behalf. It would help if you were sure you have an experienced broker as your only point of contact, someone who won’t spend your time on on-the-job training.
7. Personality. Ensure that the broker you will work with is liked, personable, and you can trust. Selling a business can be time-consuming, taking an average of 6 months to 2 years. You must have a positive working relationship and feel that the broker understands your position and has the same level of motivation to reach a deal as you do.
8. Communication. If you want to close a deal as quickly as possible, choose a responsive broker, a good communicator, and someone willing to be available after hours when needed.
9. Valuation. Don’t choose a broker who gives your business value that seems too good. It’s hard not to feel flattered when someone places great importance on the product of your blood, sweat, and tears. Marketing your business at an unrealistic price risk alienating potential buyers and can increase exposure to the market for a long period. Every assessment given to you by a broker should be based on facts.
10. Fees. Make sure you have written confirmation of what and how the broker’s fees will be charged, and double-check the fine print. Although brokers usually charge an initial advance, it should be minimal. Ensure that most fees are sales-based and are calculated as a percentage of the final sale price.
11. Professional Recommendation. If you have already appointed a specialized business attorney, they will likely be able to recommend a good business broker. This has the dual benefits of having the confidence of a broker recommended by a professional you trust, and you also reap the benefits of working with a team that has worked successfully together on previous trades and who shares the same values.
12. Questions! And finally, expect questions! A good broker will want to know as much about you, your business, and your goals as you do about them. They should show genuine interest in your transaction and express passion for what they do.

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