Top 10 questions to ask your business broker
It’s a big decision to sell your business and next you have to figure out how. Most sellers want a quick sale at a great price. In most instances, your best chance of achieving this is by using a business broker - who will save you time and hopefully make you money. The other alternative is to market and sell your business on your own. While this is certainly doable, it is time consuming and you’ll need a special set of skills and knowledge.
Whatever you decide, it is always good to discuss the options with those who make it their full-time job. To help you cover all the bases, below is a list of the 10 most useful questions to ask a business broker so you get the right knowledge to make an informed decision.
What to ask a business broker
- Tell me about your company and your services, what do you offer?
- What experience do you have selling this kind of business and in this location?
- Can you tell me about some of your recent sales and provide references?
- What do you think my business is worth and what can I expect in the process?
- Are you affiliated to any networks, associations or trade groups?
- How many prospective buyers do you have in your database?
- How will you market my business – what print media will you use and how, which key websites will my business be listed on and how will you use social media?
- How and how often will you report on any buyer interest or other activity?
- How will you screen, introduce and show potential buyers my business?
- Can I have a copy of your listing contract and fee structure?
Don’t be afraid to shop around. Visit more than one reputable business broker to get a complete picture of the services available and to find out who you would like to work with. Your relationship with your broker is important – you’ll want to work with some you get along with and, most importantly, trust. Ask questions, quantify the value they can add, and determine how successful they are likely to be in finding the best buyer at the best price for your business.
Finally, when it comes to fees, they can vary, depending on the sale price of the business. The contract should cover the fees, length of time they will be representing you, and how they are going to advertise and market your business. And if in doubt, always seek independent or legal advice.
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