Selling a business at your desired price is a large undertaking because it requires an in-depth understanding of the marketplace, competitors, and the company’s overall position.
It can be difficult to find the right buyers because of two major problems:
Key stakeholders such as C-suite, high-level executives and investors are hard to reach, and
The executives’ pain points aren’t always obvious to understand.
But you can gain access to qualified leads by hiring a business broker – it could make all the difference between a successful transaction and a failed one. Wondering how to find the right business broker for your company? Check out these seven tips.
Use Referrals
You can’t go wrong with a referral from someone you trust. Ask your peers, a lawyer, or accountants experienced in mergers and acquisitions for a list of good brokers in your industry.
Run a Background Check on the Broker
It helps to conduct a background check on your business broker’s background, credentials, and experience. Do they have any issues with the authorities? Check the licensing website, REA( Real Estate Authority) and search their names. All the information is available to the public. You can’t go wrong with the testimonials. Check what others say about them how happy they are with the previous business transactions. Take a good look at their references. Have they ever handled sales of a similar business before?
Don’t Tell Anyone
You don’t want to lose key employees and vendors by revealing that you intend to sell the business. This should be kept highly confidential. A business broker will ensure all transactions are kept fully private.
Ask the Broker About their Process
Your business broker will pitch a world of promises – and that’s a good thing, as long as they can back it up with proof. You should be hearing details about the strategy the broker will use to market your business, as well as key steps to keep everything confidential.
A major aspect of business brokers is to scout for serious buyers with a screening process. They will usually meet with several potential buyers before allowing them to go through the sales path.
Ask Them About Other Listings
Business brokers often have other listings that they are managing. It’s a good sign if they are keeping busy and showing confidence in their abilities. The business sales market is a very dynamic environment. Many new buyers appear in the market every day. It is important to choose a business broker who is highly active in the market.
Invest in Marketing
Business brokers usually take a certain percentage of the sales price as a commission when the business deal becomes unconditional. This provides them with a good incentive to secure a good deal. Also, there is usually an upfront fee for marketing. Discuss this with your business broker and make sure your every dollar will be utilised fully for the benefit of marketing the business to give your business a good exposure in the market. If the business broker doesn’t have a proper marketing plan, it may be time to talk to another broker to ensure you won’t be wasting your money and most importantly your time on a journey that will go nowhere.
Check Out Their Office
Do they have an actual office where the important and confidential meetings can be conducted or do they work from their home? Do they have a team who can handle administrative tasks, so it frees them up to spend more time selling the business? These are all little details that can provide clues into the business broker’s work ethic and efficiency.
Wrapping Up
Last but not the least, it is important to establish trust between you and the business broker. The partnership they have with you will impact your ability to improve your sales goals. You can improve the chances of a successful sale by hiring a broker who truly listens to what you have to say and isn’t afraid to be blunt with you about your prospects, regardless of how great or grim they may be. If you’re navigating a deal and selling a business for the first time, I am happy to provide the expertise that will enable you to close it successfully.