How to Know if a Professional Business Broker is Right for You
By: Justin Farmer
You may already know that when selling your business, business brokerage firms can be quite helpful. Experienced business brokerage firms will screen qualified buyers and help you through the many obstacles you may encounter when trying to complete your sale. In the meantime, you can remain focused on running your business before the sale is final.
The question then, is not whether or not you need a business broker, but how to find the one that is right for you. Below are three ways you can ensure the broker you choose will help, not hurt, the sale.
1. Check a Business Broker’s Credentials
Hopefully, you will speak to several business brokerage firms when trying to find one to sell your business, and you should both check credentials for the broker you will be working with and request to speak with client references. Any firm that is going to help sell your business should have brokers with the Certified Business Intermediary (CBI) certification from the International Business Brokers Association.
Also ask any business broker you speak to how many businesses they have sold in the past year, and how many listings they currently have. This will allow you to determine if they have a good track record, and if they will have the time necessary to devote to helping sell your business. You can also look for firms that specialize and, thus, extensive experience selling your type of business since selling a professional service company, such as a law or accounting practice, is not the same as selling a widget factory or restaurant.
2. Make Sure the Firm Understands Your Needs
You may want to sell your business, but it will still be an emotional time for you. You need to ensure that the business broker you choose will understand your needs and goals, and why you are selling your business. This will allow them to create a marketing strategy that is right for you and your situation. You will also need to review the strengths and weaknesses of your business with the broker, so you will need to feel comfortable with them and be able to place your full trust in them.
3. Make Sure the Firm Outlines Their Sales Strategy
There is a reason you are choosing a brokerage firm to sell your company for you. The firm should have extensive experience marketing businesses, locating buyers, and then vetting each buyer to ensure they are a good candidate for a business.
Always ask any business broker you speak to about advertising strategies, what dynamic and static marketing activities they utilize, and the effectiveness of those strategies. The brokerage firm you choose should use a wide variety of resources within their advertising strategy, including both online and offline tactics to find the buyer you need. Also ask about the firm’s screening process and how it narrows potential buyers down to serious prospects, including how the firm will protect your confidence when speaking to prospective buyers. When performed effectively, advertising your business for sale means you will share confidential details of your business with more qualified buyers, which is important.
Call Our Business Brokerage Firm to Get the Help You Need
If you are selling your business, our business brokerage firm, based in Washington, can help. At Private Practice Transitions, our brokers hold CBI certifications and have the experience necessary to ensure the sale of your business goes as smoothly as possible. Call us today at (253) 509-9224 or contact us online to learn more about how we can help.