How do I choose the right broker to sell my business?  5 Top Questions to Start the Process…

Let’s face it, selling a business may be very stressful or it could be a joyous occasion. Whatever the reason is for selling the business, finding the right broker is extremely important.  Some hard questions will need to be asked to find the right business broker.  We have complied a list of five questions to ask the potential business broker to help you narrow down your choices. These five questions are not the only questions to ask, however, they are a good place to start the process.

Let’s get started.

1. Referral or word of mouth. Being in business whether it be a franchise, a local business with a store front or an online business venture, it is imperative to research and ask for referrals for a qualified business broker in your area. While most qualified business broker referrals will take you seriously and follow up with you, they also need to be able to spend some time with you and answer all the questions you have regarding selling your business.
2. How well did the business broker respond to your first phone call? Did you get along or did you feel uncomfortable talking with them? Feeling respected when talking with a potential business broker is especially important. A genuinely responsive broker will listen to your questions rather than talk over you and not answer those important questions to sell your business. Being talked over should be a big Red Flag!
3. Can I trust the business broker to do what he or she is promising to do? This may be a delicate situation where the business owner is just seeking out information and doesn’t want a possible sale leaked out to employees, the management team or worse yet customers. Even suppliers should be kept out of the selling process too. If employees find out, it usually will be a gossip column that gets out of control with too many rumors or non-truths.
4. Experience – How long has the business broker sold businesses? A full-time business broker that is committed to your business sale is key in finding the right buyer in a timely matter. Experience does count with a proven resume of sales and is part of the IBBA (International Business Brokers Association) or TABB (Texas Association of Business Brokers) or M&A Source.
5. How responsive is the broker? Sometimes when selling a business, it may need to be a quick sale. If you don’t hear from your broker in a timely matter, how do you know if the business is even being offered professionally? Making sure the broker is available and responsive could be critical for the sale of the business. Time is money as the saying goes! Get the brokers cell number and be able to text or call with a turnaround response time within 1 – 2 hours or time agreed upon when you listed the business for sale.

This is just the start of questions to ask while researching the list of referral brokers or just researching on your own. In the end it’s not always about the price.  When you have the right business broker, he or she will get you the top price! Simply put “Trust Your Intuition.”

Being a business owner has its own set of challenges.  Let Sunbelt Dallas Metro help you through the selling process. Contact Bill Nicholson and Team today!

Bill Nicholson is the owner of Sunbelt Business Brokers of Dallas Metro. He has over 20 years of experience as a business owner and managing business transactions. As a seasoned intermediary, Bill has successfully represented companies in a broad range of industries helping business owners achieve their desired exit strategy or growth initiative.

Bill is also owner of Exit Strategy Advisors, LLC, a middle-market focused, M&A advisory and investment banking firm.  Finally, he is the owner of Blueprint Realty, LLC, a commercial real estate (CRE) brokerage firm serving clients in Dallas/Fort Worth for almost 20 years.

Previously Bill has been involved in several entrepreneurial ventures as well as having held corporate roles including chief operating officer (COO) for a boutique law firm in Dallas.

Bill is a graduate of the University of Arkansas with a degree in Mechanical Engineering, a graduate of Stanford University with a master’s in Mechanical Engineering and has earned his MBA from UCLA. He has received the Certified Main Street Business Broker (CMSBB) certification and is a licensed Real Estate Broker in the state of Texas. He has been affiliated with several organizations including membership in the Texas Association of Business Brokers (TABB), a member of the International Business Brokers Association (IBBA) and membership in the M&A Source.