Investing in a company involves time, effort, and creativity. When a business owner is ready to sell their business, they want to get as much as possible out of it. As a result, hiring a business broker helps owners realize the greatest gain. Discover ten essential questions to ask before choosing a business broker to help sell your company.
- How Long Have You Been in Business?
- What Size Businesses Do You Sell?
- What Is Your Success Rate?
- How Will You Market My Business?
- Will You Protect My Company’s Confidentiality?
- How Do You Vet Potential Buyers?
- What Is Your Fee and Commission Schedule?
- Do You Work With a Team?
- Are You a Real Estate Broker?
- Who Prepares the Final Sales Contract?
How Long Have You Been in Business?
The first question to ask when contacting a business broker is how long they have been in business. An experienced broker has the knowledge and connections to sell your business. Verify the broker’s statements by asking for references and reading online reviews to see what others say. Also, choose a broker with the technological expertise to keep up with the competition.
What Size Businesses Do You Sell?
Another question to ask a broker before selling your business is what size companies they usually sell. I
What Is Your Success Rate?
An important question to ask to avoid mistakes is what is the broker’s success rate? You want to verify the broker works with similar companies and find out how many successful transactions they closed in the past year.
How Will You Market My Business?
Effective marketing is crucial to finding buyers interested in your type of business. Discuss the marketing methods and strategies with a broker to ensure they cover all bases, such as maintaining a list of qualified buyers and using SEO to attract an online target audience.
Will You Protect My Company’s Confidentiality?
Many business owners have privacy concerns when selling a company. If confidentiality is crucial to a successful sale, talk to the broker about how they protect it to keep the sale moving forward.
How Do You Vet Potential Buyers?
Many people might want to buy your company, but they must be qualified to do it or financing becomes a time-consuming hassle and could mean a deal doesn’t go through. Talk to the broker about how they vet potential buyers to ensure they are qualified to purchase the business.
What Is Your Fee and Commission Schedule?
Like any other professional, a business broker expects to be paid for the services. Therefore, inquire about the broker’s fee and commission schedule to ensure transparency throughout the sales process and avoid surprises later.
Do You Work With a Team?
Some brokers work independently, while others have staff. Ask the broker if they work with a team and who you will deal with so you know the right people to contact with questions and concerns.
Are You a Real Estate Broker?
Sometimes, it helps to choose a business broker who is also a real estate broker. If you’re also selling property, consider working with a broker who handles both transactions for a seamless experience.
Who Prepares the Final Sales Contract?
Finally, ask the broker if they help prepare the final contract. The most efficient brokers work with your attorney to ensure the agreement is accurately memorialized.
Selling your business is one of a lifetime’s most significant financial decisions. As a result, it is crucial to meet with business brokers and ask the right questions. Hiring a qualified business broker helps you get the best possible deal without hassles. Use these guidelines to find the right broker to represent your company sale.
