Choosing The Right Business Broker, selling a small firm for a significant price represents the culmination of years of hard work and perseverance. However, if you aren’t in a hot field or don’t have any unsolicited bids, finding buyers for your company can be challenging. Consider hiring a business broker, who is akin to a real estate agent, to have access to a bigger pool of purchasers and a structured selling process.

Buyers and sellers are brought together by business brokers, who act as matchmakers. The appropriate broker can assist your small business in obtaining the greatest possible sale price.

8 Steps to Finding a Business Broker

If you aren’t currently working with a business broker, conducting some research and familiarizing yourself with the process will help you find the best person for your transaction. Good brokers assist small businesses in locating potential purchasers as well as navigating the complications of sales.

Connecting with the correct broker and getting the most out of your business sale starts with working with your team of expert advisers and following eight crucial stages.

• Get referrals: Always start with a referral from a reliable source if at all possible. For names of good business brokers, ask your accountant, lawyer, colleagues, and industry group.

 

• Use IBBA: The International Business Brokers Association is a non-profit trade organization that provides education, networking, and professional training to its members through conferences and other events. It’s also a good place to look for brokers in your area who are familiar with your industry. IBBA collaborates with over 1,000 business intermediates worldwide.

 

• Do due diligence: You should conduct due diligence in the same way that a potential buyer of your firm would. Examine the background, experience, and certifications of your broker. Are they the subject of any lawsuits or complaints? Consult the Better Business Bureau for more information. Look into their references. Have they ever managed sales for a company like yours?

 

• Find a dedicated practitioner: A full-time company broker will provide more value to your sales transaction than a part-time representative. A full-time business broker has a larger network of connections and a better understanding of business valuation standards. Look for someone that is passionate about their job. Consider using merger and acquisition intermediaries if your firm is worth millions. During your quest, the IBBA’s code of ethics is a great reference tool.

 

• Keep it a secret: Informing important employees and suppliers that your company is for sale will help you avoid losing them. It should be kept as private as possible. Your business broker should make sure that all of the necessary precautions are in place to secure your business. If you tell your suppliers, employees, or customers that you’re selling the firm too soon, it can have a negative impact on your business operations and any prospective sales.

 

• Deliver a marketing plan: It’s all about marketing when it comes to selling your company. Your goal should be to put your firm for sale in such a way that it attracts and motivates as many purchasers as possible. Ensure that your business broker has a marketing strategy in place, including instructions on how to acquire a diverse range of potential buyer leads.

 

• Avoid large upfront fees: The commission charged by a business broker ranges from 10% to 15% of the sale price of your firm. Avoid any broker that asks for a significant upfront fee to appraise the value of your company or to begin the application process.

 

• Avoid the pressure: Allowing your business broker to put you under duress is never a good idea. Make no hasty decisions. Selling your business is a difficult personal and professional transaction. Take the time to understand and explain any ambiguities you may have.