12 Questions to Ask Your Business Brokers During the Initial Consultation
After years of long days and full weeks of building your business, you’re ready to sell your prized possession or buy another business, and you know you need a business broker. You’ve done some research online and created a shortlist. But you don’t know the best questions to ask to get the best business brokers for your company.
Selling or buying a business likely is the most important decision you will make. You have just one chance to get it right. Screening business brokers and finding the one that best fits your objectives and goals should be uppermost in your mind.
You should make a list of at least three business brokers. Most business brokers do not charge for the initial consultation, so you can sit down with more than one separately, ask the same questions, and compare answers.
Here are 12 questions to ask your business brokers during the initial consultation.
12 Questions to Ask Business Brokers
Your initial consultation with business brokers should solicit enough information to feel comfortable that you’ve found a broker or firm of brokers who will have your best interests at heart.
You will work closely with these business brokers for six months to a year, so you want to find someone you trust or believe will do the best job for you.
The following questions may not be all that you want to ask, but they can form a good foundation for finding the business brokers that will work for you:
How many years of experience do you have as a broker?
What types of deals have your business brokers worked on?
Have you worked to sell or buy businesses similar to mine?
What is your track record of successfully closing deals?
Do you have any testimonials or clients who can speak to your work?
Are you licensed to work in my jurisdiction?
How will you help me prepare my business for sale?
How will you value my business?
What is your process for finding potential buyers?
How will you help me negotiate the deal?
What is your process for closing the deal?
How much do you charge?
Business brokers should be able to easily answer these 12 questions to a level that helps you feel comfortable you’ve found the right ones. If not, move on to the next firm.
Your business is too important, and you’ve sacrificed too much to take a chance on business brokers you aren’t comfortable with.
Certification and Licensing
Like with some other professions, you might wonder about certifications and licensing. There is no national requirement to certify or license people to become business brokers.
However, the International Business Brokers Association recommends business brokers seek the group’s Certified Business Intermediary (CBI) designation to prove their expertise and professionalism.
In Florida, business brokers are required to obtain a real estate license to practice in the state.
Find Your Business Broker
Now that you know some questions to ask, you can create your list of business brokers. You can feel confident asking questions to reveal the right match to sell your business or locate a company to buy.
