Selling a business can be chaos especially if you are clueless about where and how to start.
In some cases, business owners come to a decision of no longer continuing what they’ve built, while others feel that outgrowing your business means trying something different.
For whatever reason it may be, there are many things to consider and keep in mind when wanting to sell one’s company. After pouring all your effort into expanding your business despite the odds, you would want it to be in good hands so that it would remain part of the economy.
But how does one know where to start? This is where a business broker comes in.
A business broker has a similar duty as a real estate agent, however the significant difference is they assist in selling and buying businesses instead of houses.
So after asking yourself “Where do I start?”, now would be the perfect time to ask “How do I hire the right business broker?” Below are some tips in hiring the right broker for your business.
This is a no-brainer. It’s highly essential to choose a broker with experience, especially in your specific industry and local market. Orlando business broker, Cress V. Diglio shares that researching the percentage of how much your broker has sold, similar to your industry, within the last 12 months would be a great start. If results show that his percentage is as cold as a turkey, you may not want to consider hiring him as your broker.
IBBA is a community of business brokers where you can search for a specific broker or broker near your area. Utilizing this community is extremely convenient as it can save your time in searching for a decent business broker.
Stick to Referrals
Sticking to a referred broker from a friend, family, accountant, or lawyer is always a good scheme. This will surely keep you less stressed as you will have an idea on how they work and if they’re worth hiring.
Business broker’s fee ranges from ten to fifteen percent commission of the sale price of a company. Be alert when they ask you for a hefty upfront fee to assess your business and industry.
Know Their Marketing Strategy
Even if you will be laying your business into a broker’s hand for them to deal with all the chaos, knowing their strategy would be a great idea. One must be aware of how their business will be positioned in the market. A good business broker should have an excellent marketing strategy when it comes to selling someone’s business; after all, that is their expertise.
Manage The Process
Hiring a business broker doesn’t mean you need to leave all the decision making up to him. It’s best to always keep in mind why you hired him and what you are paying him for. Always ask for progress updates. If your business doesn’t sell in months, ask your broker for a weekly update so that at least you are aware of what’s happening and what could be done. Remember, you are still in charge of your business.
These are probably the most important tips in hiring the right broker for your business. Always keep in mind to choose the broker you are most comfortable working with.