If you are thinking of buying or selling a business, you may have considered using a business broker. A business broker helps people buy and sell their businesses. Business brokers can help you figure out the value of your business, find potential buyers, and conduct interviews with them.
Different states have different regulations for brokers. Some states require that brokers have licenses. Brokers in the state of New Jersey such as neumannassociates.com, require 150 hours of prelicensure education. When selecting a business broker, there are certain qualities that you should look for.
1. Find A Dedicated Business Broker
There are some real estate agents who are business brokers on the side. It is a good idea to find an agency that has a department that is devoted to business brokerage work. Some brokerages may also have separate departments for real estate sales and brokerage work. Selling a business is complicated and involves a lot of detailed paperwork.
It is also helpful if they have experience in your particular area of business. They will be better able to do research and understand what is important in your field.
2. Check Out The Professional Accreditation
Even if your state does not require official licenses for business brokers, there are some ways you can find out if they are qualified to handle the sale of your business. A worthwhile broker will have accreditation from professional organizations. The firm you hire should have memberships in the local Chamber of Commerce. You may also want to look for a broker who has an M and A Source Accreditation. A person who has this accreditation will have a Mergers and Acquisitions Master Intermediary. Having such an accreditation means they have at least three years of experience and that they have been the lead broker on at least 3 transactions of over $1 million in sale price.
3. Ask For References
When you patronize any business, you are obviously going to do a Google search on that business. Some of the reviews that you will find are bound to be paid for. Ask any potential broker to provide you with references. The internet can be a great source of information, but you want to back up your research with actual conversations with real clients.
4. Ask The Broker Plenty Of Questions
If a potential broker claims that they have a lot of experience selling businesses in your field, don't be afraid to quiz them. They should be aware of the ins-and-outs of your business and know what would be important to potential buyers.
5. Ask About How They Will Market Your Company
The most important aspect of selling anything is making the public aware that it is for sale. A business is no exception.
The brokerage should do more than just advertise your business online. Ask them what kind of connections they have and what they will do to put your business out there. If they have been in business for a while, they should already have relationships with some investors.
Sell Smarter With The Best Business Broker
Selling a business is complex and time-consuming work. The right brokerage firm can make it easier.
