Although you may be choosing to list with a firm, you will be primarily working with the listing business broker. Here is what you should look for in a business broker:
Would you hire this person to work for you? That is what you are doing so be sure you think this person is competent and you can work with them.
Do they have a record of success? What has this business broker achieved during their career? What jobs have they held or business owned? Is it good experience for knowing about and selling your type of business? What degrees have they earned? At what schools?
What training and experience do they have that qualifies them to be a good business broker?
Does the business broker follow up? This is what it takes to get deals done. They will have to follow up with you, potential buyers, and other parties to get the deal done. If a potential business broker is not contacting you frequently to get your listing, it is not a good sign.
What type of image does the business broker present? Do their written materials look professionally prepared and printed? Do they work out of their home or have an office where they meet buyers? Does their website look professional? How does their car and personal appearance look? Their image will reflect on your image to a potential buyer.
If you want to “multi-list” your business and have other business brokers work to sell your listing, you should find out what multiple listing system the prospective business broker is a member of. There isn’t a single multi-list service that is used by all business brokers. Some business brokers do not co-broke their listings with other brokers.
How will the business broker market your business? In most situations, this would be a combination of direct contact to reach potential buyers, their database of buyers, and Internet advertising. However, how the business broker does this can vary significantly. Ask.
How much do they think you should ask for the business? A good business broker should give you a written estimate of its likely selling price with supporting documentation and information on comparable sales. We offer a free business valuation report and consultation to owners who are seriously considering selling their business.
What professional organizations is the business broker affiliated with? The International Business Brokers Association and New England Business Brokers Association are two organizations that many business brokers in New England are members of.
Review their listing agreement.
Check their references.
A good business broker can get a higher selling price for you and make the selling process easier for you. Following these guidelines can help you find the right business broker.
BayState Business Brokers, 61 North Beacon Street, Suite 203 Boston, MA 02134
T: 617-562-5700, F: 617-562-5701