Working with a business broker is the secret to selling your business quickly and for the most money possible. However, not every business broker out there has your best interests in mind, which is the problem. Some are unskilled real estate agents who also work as business brokers, and you need to identify an experienced business broker to work with. You must consider the following to make sure you hire the best candidate for the position.
Qualifications
Selling a business is not easy, and the last thing you want is to hire someone who lacks the knowledge and resources necessary to market your company. The most crucial thing you should do is make sure the business brokers are qualified.
The top business brokers are experienced and have the necessary certifications. The two most significant of these accreditations are the M&A (Mergers and Acquisitions) Source Accreditation and the IBBA Accreditation. A corporate broker can become accredited as an M&AMI, or Mergers and Acquisitions Master Intermediary, through the M&A Source, and they must fulfill several conditions to be approved.
Brokers who are members of the IBBA have the CBI (Certified Business Intermediary) designation. A broker must prove with documentation that they were the lead broker on at least three transactions to receive this accreditation.
An impressive track record
Making sure the business broker has been in operation for at least five years and has sold at least two firms in the previous year should be your priority. Second, you must confirm that he has sold companies of comparable size to yours. Has he ever worked in your sector? How long do his business listings remain online until the sale is completed? How many listings on the site does the broker manage? You can get a general notion of what to anticipate from the broker based on the answers to these queries.
Reputation
You should never disregard the reputation of a company brokerage organization. Ensure the broker keeps his word and is dedicated to customer satisfaction. It is best to get references and contact as many of his most recent clientele as possible. What opinions do they have on the services? A warning sign is an abundance of unfavorable reviews. Pay special attention to the common grievances of previous clients.
Full-time business brokerage
You might come across some brokers who work part-time when you’re looking for a business broker. However, compared to working full-time, they have less experience because they only work part-time. This implies that your selling won’t bring in as much cash.
A company broker that works full-time will have a broader network of contacts and a greater understanding of business value. Additional connections equate to more potential sales. You might consider hiring a full-time merger and acquisition mediator if you run a bigger business.
However, remember that a full-time company broker shouldn’t charge astronomically high costs. Like part-time business brokers, a full-time broker will only charge you 10 to 15 percent of the commission on your sale. If they ask you for more, it is a red flag.
