Finding the right business broker is an essential part of a successful business sale and it is important to consider your selection criteria and focus on the broker characteristics that are most important to you. We have highlighted below some of the business broker characteristics which you may base your selection on:
- the prospective brokers’ track records and educational, professional and membership credentials so as to ensure they meet certain professional standards and are accountable to their peers;
- does the business broker have an extensive network – does the brokerage firm have solid relationships with law firms, accountants, bankers and other professionals?
- a strong two-way relationship should be evident early on between you and your broker whereby your broker will speak openly and honestly with you;
- does the broker spend a considerable amount of time analyzing the vendor’s goals, reasons for selling, business financials and the strengths and weaknesses of the business as this forms the basis forms the foundation for the proper marketing strategy – if a broker rushes through this process it may be a sign that you should consider a different broker;
- is there a comprehensive online and offline strategy for promoting your business opportunity to targeted purchasers – what well known websites will the business broker advertise your business on? Many business broking firms do not even advertise your business externally to their own website thereby limiting the likely purchasers that will consider your business for sale.
- does your business broker provide regular updates to you on enquiries and the status of your file?
- will your business broker provide useful assistance in progressing the transaction when it is being handled by the lawyers acting on the transaction.
When everything is said and done, the success of your business sale will be largely determined by your business broker’s efforts and abilities. Consequently, one of your most important sale actions is to invest time and energy in finding the business broker that is the right fit for your business and your specific sale goals. Nobody’s perfect, but with a little work you can find a great business broker that will help you achieve your most important sale objectives.