What Should I Look for in a Reputable Business Broker?
If you’re looking to sell your business, you can try to save money by going it alone. However, selling a company takes a different skill set than running one — and without guidance from someone adept at buying and selling businesses, you might find out that you’ve wasted your time and money.
Sunbelt Business Brokers maintains a broad network of business relationships and industry professionals who can connect you with the right buyer at the best price for your business. But how do you choose the right person? We’ll discuss what you should look for in a reputable business broker.
What Is a Business Broker?
A business broker is an intermediary between a buyer and seller who facilitates the transaction. They can manage the sale of your company from the marketing to the closing. Here are just a few responsibilities business brokers handle:
Valuing your business
Marketing your company
Maintaining your confidentiality
Screening and qualifying buyers
Structuring deals
Negotiating prices
Closing transactions
Reputable business brokers can make the process go smoothly — but some brokers can create stress and cost you time and money.
The typical business sale takes six months to a year, and your contract with a business broker will likely be exclusive. Your time will be well spent speaking to several business brokers and evaluating their experience before signing a contract.
You can start the process with the business valuation calculator from Sunbelt Business Brokers.
What to Look for in a Reputable Business Broker
Many business brokers have real estate licenses, especially in states that require them. However, not all states have this requirement, and there is no license specifically for business brokers.
Instead, you can ask whether the broker is a member of professional organizations like M&A Source or the International Business Brokers Association. You might also inquire about designations like Certified Business Intermediary or Merger & Acquisition Master Intermediary.
Licenses, affiliations, and certifications can be a good starting point for finding a business broker. Additionally, consider this list of qualities and character traits:
Good Reviews
Talk to people you trust — other business owners, friends, and family — to see if they recommend anyone. Review a broker’s web presence and read comments from clients about their experiences. Also, look for completed deals on the broker’s website and think about if they align with your goals.
Solid Sales Strategy and Confidentiality
Ask potential business brokers questions about their process, such as:
What the broker’s typical marketing plan is
How they locate, screen, and qualify buyers
How they plan to protect your confidentiality
Good brokers can outline their sales strategy, explain their advertising budget, and assure you about maintaining confidentiality.
Communication
You want a broker who is available to answer your questions and who responds quickly to calls and emails. Selling your business is a big event and can be complicated and emotional. A good broker will support and guide you through the process.
Dedication and Commitment
Find out whether your broker buys and sells businesses full-time or part-time. To help you get the most value for your business and meet your financial goals, you want someone who is fully committed.
Transparency
Reputable business brokers will give you quick and straight answers when asked about fees and commissions.
Choose the Business Broker Who Fits You
After searching for a qualified broker with the qualities you need, you ultimately want to select someone you trust. Take your time and pick the broker you feel most comfortable with and confident in.
