How to Choose the Right Business Broker

April 19, 2022 by Fusion Business Services Blog 0 comments

It takes small business owners an average of two to four years to sell their businesses on their own. If you don’t plan to sell your business in advance or if you don’t get professional help, there is a high risk that your business will not sell or that you will not make as much profit from the sale of your business. One of the most important things you can do is find reliable local business brokers to help you sell your business.

Do you want to learn more about choosing the best small business brokers for the sale of your business?

Keep reading this article for the top factors to consider when choosing the right business broker.

Ask About Experience

Asking about the company’s experience is one of the first things you need to do when hiring a business broker.

There are a few questions that can help you answer this question. For example, how long have they been working in the industry? How many clients have they had in the past?

Another way that you can learn about your business broker’s experience in the industry is by asking them for references for their past clients. They can provide you with a list of people they have worked with in the past, the companies that they have helped buy or sell, and more.

You can also get the contact information for these past clients and ask them about their experience working with the same business broker. If they had a good experience and felt like they received professional quality services, you can trust that you will have a similar experience.

Make sure your business broker has worked with clients in a similar industry before and is familiar with the buying or selling process.

Check Credentials

You must also learn more about your business broker’s credentials before you hire them to work with your company. In some states, you don’t need to be licensed in order to sell a business.

In these cases, you must consider other qualifications. Have they earned any other professional qualifications? For example, the International Business Brokers Association can train them to be a Certified Business Intermediary.

These additional credentials show that they value professionalism and are dedicated to learning more about their work.

Ask About Track Record

Another important part of choosing a broker is learning more about their track record.

Asking about the company’s track record will help you feel confident that they deliver results for their clients. While many people will try to sell their businesses, not many of them will ever find a buyer or end up selling.

If you have a low-quality business broker that is unable to deliver results, you may end up wasting money on their services without ever selling your business.

Many business brokerage companies will keep track of their past clients so they can prove their success rate for future clients.

Consider Comfort

Because it can take several months or even years to sell a business, you must be comfortable working with your business broker. Because you will be working with them for so long, you need to connect on a personal level and ensure that they will do what they can to help you.

If any issues arise, having this comfortable relationship will help you lower your stress and resolve the problems together.

Check Online Reviews

Before hiring a business broker, you must also check their online review. Reading online reviews will help you learn more about the company’s reputation, past client experiences, and more.

You can read through past buyer and seller reviews to ensure that they were satisfied with the services that they received.

If a company has more than a handful of negative reviews, you may want to hire a different business broker to help you sell or buy a business.

Get Free Consultations

Often, business brokers will offer potential clients free consultations. This is an easy way to learn more about their company and to establish a relationship before hiring someone to help you buy or sell a company.

Free consultations are important, as they help you answer your questions about the buying or selling process. During this consultation, you can also learn more about their pricing.

You can see whether they charge an upfront fee for their services or if they will only take a percentage from the final sale of your business.

Consider the Level of Service

Finally, you must consider the level of service that your business broker is able to offer you. This includes their customer service and communication skills, the services they offer, and more.

To get an idea of the level of service a company offers, you should pay attention to your first impressions. When you met with the broker were they responsive? Did they return your calls or answer your questions in a timely manner?

If your business brokerage truly cares about your success, they will keep you up to date with new information and will continually work to find a reliable buyer or seller.

Looking for Business Brokers Near Me?

Choosing the right business brokers for your company is necessary to get the best price for your business sale or purchase. By following each of these tips, it will be easy to find reliable business insurance brokers to help you buy or sell your business.

Are you looking for home health business brokers in the St. Louis area? Fusion Advantage can help! We offer services for buying or selling businesses and can help you through the entire process.