Business brokers are there to assist both buyers and sellers in the process of buying/selling an existing company. More often than not the broker is responsible for estimating the worth of the company, advertising it (and not necessarily with the identity of the business disclosed), handling initial interviews with buyers, discussions, negotiations, and facilitating due diligence as required. The business broker is the person representing the company to be sold and the principle broker represents the clients who may want to invest in the company.
Typically, they offer full services for the process of selling the business. They can work full time on behalf of the seller to ensure that the transactions go smoothly and all parties are satisfied with the outcome.
When you are selling off your business, chances are this is a significant decision in your life, one which has taken a great deal of time and thought to decide. That being said, working with experienced brokers can make all the difference in terms of how well the selling of your business goes and what type of deal you are able to make in exchange for your company.
When you are involved in selling your company, you want to make sure that you find a great business broker. Much the same as the real estate industry, your broker is there to help you sell your company for a good price, to people who are looking for just what you have to offer. In most cases, as the seller, you will be responsible for the broker fees. That is why it is important that you do your research and make sure that the broker you pick to represent, market, and sell your company is top notch.
Once you have reached the point in your life that you want to sell off your company, it is time to ask a few questions before you actually hire the broker.
What qualifications does the business broker have?
Before you buy, make sure you interview the potential brokers and learn all about their qualifications by asking them the following questions:
- Ask if they are certified. You want find out if they are certified by checking places such as the Certified Business Intermediary.
- Ask if they are a part of the International Business Brokers Association. You can go to the company website and search for the name of your broker to find their membership and their membership history.
- Ask how long they have worked as a broker. It is best to hire someone with a long history of working as a broker, because this means they are established and successful and will not so easily let you down.
- Ask if they are a part time broker or if they work full time. This is particularly important because you want to ensure that the person you hire to work with you will be available whenever the need arises. Someone who works part time may not be able to offer the same reassurances or commitment as someone who works full time.
- Ask if they have a real estate license. Many brokers are also licensed realtors and in a handful of states, this is a requirement. Therefore, having a broker who is also a licensed realtor can help you with the sale of your business property and more.