Business brokers are essential for successfully completing business sales. If you’re interested in buying or selling a business, understand the essential functions of business brokers and how to find a quality broker for you.
What are Business Brokers?
Business brokers are trained professionals who assist buyers and sellers of privately owned businesses during the buying and selling process. Specifically, business brokers estimate your business’s value, advertise your business, and interview potential buyers.
Business brokers provide expert advice and resources necessary for successfully buying and selling businesses. Additionally, business brokers are connected with other professionals required for a business sale, including financial managers, accountants, and attorneys.
Reasons to Recruit a Business Broker
Recruiting business brokers is necessary for buying or selling a business.
Sellers require business brokers for creating a sales and marketing strategy, pricing businesses appropriately, and preparing businesses for sale, effectively eliminating stress and allowing business owners to concentrate on operations.
Buyers need business brokers for locating opportunities, acquiring sellers, and negotiating deals, significantly assisting in achieving business objectives and financial goals.
Finding a Quality Business Broker
Find a quality business broker to buy or sell your business by following a step-by-step process for success.
1. Confirm Experience
Confirm your business broker’s experience to guarantee excellent results.
Years of experience are initial indicators of a business broker’s experience level. Select a business broker containing multiple years working full-time within your specific industry. Ensuring a business broker specializes in your industry is necessary for certifying they possess crucial knowledge and professional connections.
Certifications signify a broker’s professionalism and skills. Reputable business brokers are generally members of The International Business Brokers Association (IBBA), a professional community of brokers. Additionally, refine your search to Certified Business Intermediaries, which proves a broker’s ethical standards regarding business dealings.
Track records demonstrate a broker’s previous experience. Ask your prospective broker about their past business sales, including successes and failures.
Lastly, references serve as honest assessments of a business broker’s overall process and expertise. Contact your business broker’s previous clients to accurately judge whether they’ll suit your needs.
Locate quality Chicago business brokers by confirming each option’s experience.
2. Prioritize Confidentiality
Prioritize confidentiality by choosing a trustworthy business broker.
Selling businesses are extremely confidential matters. If your business’s suppliers, employees, or customers are informed you’re selling your business, detrimental consequences could occur negatively impacting your business operations and selling opportunities.
Professional business brokers employ strategic plans for maintaining confidentiality during your buying and selling process. Specifically, business brokers strive to improve the screening process, allowing you to focus on serious buyers and limit discussion of your business sale.
Find a business broker promoting an excellent confidentiality plan to prioritize your security.
3. Review Sales Strategy
Review a business broker’s sales strategy to guarantee a successful sale.
Sales strategies are vital for selling and marketing a business. Business brokers possess advanced knowledge and skills regarding attracting and encouraging prospective buyers.
Good brokers are able to clearly outline an overall sales strategy and budget for reaching your goals. Ask a business broker to cover their entire step-by-step plan before requesting their services.
Complete a successful business sale by reviewing your potential business broker’s sales strategy.
4. Understand Payment Plans
Understand your business broker’s budget to choose an affordable option.
Business brokers generally operate on a commission basis. Rates are usually about 10% of the sales price depending on a specific brokerage and type of business being sold.
Find a business broker following normal rules regarding pricing, ranging between 10% and 15% of the commission. Additionally, certain fees may be involved when hiring a business broker; however, avoid brokers requesting large upfront fees.
Choose a reasonable business broker by understanding the payment plan.
5. Ask Relevant Questions
Interview your prospective business broker by asking relevant questions.
Asking questions allows you to determine whether a specific broker will meet your goals and needs. Questions to ask business brokers include:
- Can you explain the buying and selling process?
- Do you work from home or in an office?
- How many current listings do you have?
- How do you value a business?
- What are your strategies regarding sales and confidentiality?
- How many qualified buyers do you have?
Ask important questions to discover the perfect broker for you and your business. Find a quality business broker by understanding the importance of business brokers and following the 5 steps for success.
