5 Must-Ask Questions to Help You Hire a Business Broker

Updated October 2023

When selling a business, many owners hire a business broker to serve as a point of reference throughout the transaction. These intermediaries act as a buffer between you and a buyer, which can help reduce a lot of uncertainty throughout the sale.

The business sales process is overwhelming; it takes more than just scouting potential buyers. But, not all business brokerage firms operate the same. The right broker will take a proactive approach to help you eliminate any pain points throughout a business sale. If you’re planning to hire a business broker, be sure to ask these five questions.

5 Questions to Ask When Planning to Hire a Business Broker

Business owners are often surprised to find just how involved the sales process is. Asking the right questions will help you find an experienced broker who has your best interest in mind.

1. Have You Had a Successful Sale With a Business Like Mine?

Different brokers have experience with different types of businesses, so it’s worth inquiring about. The right broker is one that has successfully sold businesses that are similar to yours in terms of operation, size, and scalability.

While finding a broker who has sold within your industry can be beneficial, it’s also important to focus on other business characteristics. For example, the sale of a small business is much different than that of a large corporation. So, if you’re a mom-and-pop store and they’re used to handling multimillion-dollar operations, you may not be the best fit.

2. What Marketing Materials and Strategies Will You Execute While Keeping My Sale Confidential?

Discretion is crucial throughout any business transaction. A good broker should be able to maintain your business’ confidentiality and safeguard its data while targeting buyers with proven strategies. Though remember that while you’ll want to find a broker with a strong portfolio, you first need to ensure you can have a trusting relationship.

3. How Many Years of Experience Do You Have in This Industry?

Navigating through a successful sale requires a high level of expertise. When researching potential brokers, you’ll want to consider how long they’ve been in business, what their qualifications are, and if they have any business brokerage certifications.

You’ll also want to take note of the reputation they have in their industry. An online search can tell you a lot about the quality of a business. However, it’s also good to speak to colleagues or others who may have dealt with a broker hands-on. If that’s not a possibility, ask the firm for testimonials.

4. How Will You Determine the Value of My Business?

The business valuation process is one of the most delicate aspects of a sales transaction. You’ll want to hire a business broker whose valuation process analyzes all aspects of your organization, from cash flow to goodwill. Your goal may be to make as much money as possible but keep in mind you can’t trust every broker who promises an outlandish sale price. Remember that at the end of the day, your business is only worth what others are willing to pay for it. It does no good to throw a business on a listing board with an impetuous price.

5. Do You Have a Network of Qualified Buyers?

The goal of any business broker is to match sellers with the right buyers. Ideally, they already have a network of interested candidates who match the qualifications you’re looking for. But if not, then you at least want to know that your broker can target the right people. Once they’ve generated buyer inquiries, it’s their job to help facilitate a screening process.

Unlike other brokerage firms, Sunbelt Business Brokers does more than sell businesses. We diligently work with clients to constantly deliver upon their needs. This ethic has helped us become the largest Main Street and Lower Middle Market business intermediary firm in the world. To begin your business selling journey with Sunbelt, find an office near you today.