Questions you should ask before you hire a business broker

Choosing the right broker when it’s time to buy or sell a business is a key part of the process. Who you choose to represent you or your company can make or break the sale. This is an important part of the sale – make sure to take the time and do the research required to choose the right person.

Here are some things you should ask before you hire a business broker:

• How much experience do you have as a business broker? Experience matters. You want someone who has had success in helping people buy and sell business over a long span of time, especially during dips in the economy.
• How much experience do you have in my field? Make sure to work with someone who understands your field. It’s great for someone to have sold hundreds of tech companies, but can they handle the sale or purchase of a retail business?
• What is your process for business valuation? Business valuation is more than looking at how similar businesses are priced. There should be multiple factors to measure a business’ worth to include assets, current market status, plans for the future and more.
• How many active listings do you have? You want someone who’s got a good business going and plenty of contacts. But too many listings is a sign that they won’t be able to adequately dedicate time to your needs. A good rule of thumb is 3-7 listings per broker.
• How will you keep the sale of my business private? Discretion is necessary, especially when selling a business. You probably do not want your customers or competition knowing about a sale. Ask about how the broker plans to maintain your privacy needs while marketing your business.

The effort you put into finding the right broker for your business buying or selling needs has a huge impact on the success of the transaction. Contact Sunbelt Business Brokers of Durham for a consultation today.