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HOW TO CHOOSE A BUSINESS
BROKER
Although you may be choosing
to list with a firm, you will be primarily working with
the listing broker. Here is what you should look for in
a 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 person
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?
Do they 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 broker is not contacting you frequently to get
your listing, it is not a good sign.
What type of image does the 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
brokers work your listing, you should find out what
other brokers the prospective broker works with. There
isn’t a single multi-list service that is used by all
brokers. Some brokers do not share their listings with
other brokers.
How will they market your business? In most situations,
this would be a combination of direct contact to
potential buyers, print advertising, and use of the
Internet.
How much do they think you should ask for the business?
A good broker should give you a written estimate of its
worth with supporting documentation and information on
comparable sales.
What professional organizations are they affiliated
with? The International Business Brokers
Association(www.ibba.org) and New England Business
Brokers Association(www.nebba.com) are two organizations
that many brokers in New England are members of.
Review their listing agreement.
Check their references.
A good broker can get a
higher selling price for you and make the selling
process easier for you. Following these guidelines can
help you find that broker. We offer a free business
valuation report and consultation to owners who are
seriously considering selling their business.
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