1. Choosing the right business broker for you.
One of the biggest mistakes people make is choosing the wrong broker. There’s a wide disparity in skill, experience, and reliability in business brokers, so you need to make sure you choose the one which best represents your interests. Review resumes, ask for references and make sure to follow-up with references. Find out how long the broker has been with the firm and how much experience they have in selling businesses. Find out how many businesses they have sold, and how many sales-per-year they average. Many successful brokers average eight-to-ten businesses sales, yearly. Obviously, the more dealings they have negotiated, the more experience they have. The bottom line is: trust your instincts, and hire the broker you feel compatible with.
2. Build a solid relationship with one broker.
A strong relationship takes time, and effort, on everyone’s part. A business broker that understands both the client, and the client’s industry, will do a better job representing the client in the marketplace. You need to be sure your broker understands that he represents your interests – not the buyer’s. The broker should do everything possible to help you achieve the highest sale price. It’s critical that you are comfortable enough with your broker to speak honestly. Be certain they will speak open and honestly with you, and that you trust your broker’s advice. Early on, this strong, two-way relationship should be evident.
3. Find an experienced and established business brokerage.
Every industry, has a unique knowledge base, and culture. The best brokers should have experience selling businesses in your particular trade, as well as in your price range. Without this knowledge, the broker’s pricing, and marketing efforts, may fall short of your sales objectives. Our offices specialize in the selling of businesses with revenue from $500,000 to $30 million in a large variety of industries. Your business broker should also be a trusted adviser in the community and respected by his peers. He or she should have an established relationship with lawyers, accountants, bankers and other local professionals.
4. How available is the broker for your one-on-one needs?
The relationship you have with your business broker will be a lengthy one. From the time you and your broker evaluate your business, to the time the sale closes, can be from six-to-nine months, possibly longer. Your broker should ask questions to gain insight, and take an interest in learning the mechanics about each aspect of your business. Understanding your company’s strengths, and weaknesses, will prove invaluable during the negotiation stage. Here at Sunbelt, we spend the majority of our time with our sellers here at Sunbelt. This allows us to make sure we meet every one of your needs.
5. How qualified is your business broker?
Having a real-estate license in California is a must. It forces brokers to understand state laws, and better their duties to you.
For additional information, contact Sunbelt Business Brokers, Greater Bay Area in San Jose.