Business owners often make huge mistakes by attempting to sell their business on their own when not prepared to do so. What’s worse? Choosing the wrong business broker to sell your business because you weren’t prepped to ask her the right questions. Here are our top three questions to ask a business broker before selling your business in 2019:
1) How many businesses have you sold as a lead broker on the sale?
Resumes mean little, completed transactions mean everything. Get a list of completed transactions the broker has led in your industry, in your area, in your approximate deal size… everything.
2) Who is my potential target buyer?
Make sure the broker has a good plan for selling your business, and a reliable list of active buyers she plans to market the business too. Will she market individual buyers? Investment groups? Strategic competitors in your industry who might be actively looking for acquisitions?
3) Do you co-broker?
This is a big one business owners often miss when hiring a business broker. If a business broker will not agree to co-broker you might want to run for the proverbial hills as a potential seller looking to maximize interest and offers within a limited amount of time. A broker who refuses to co-broker (work with and share commission) with another professional representing a buyer who might be interested in your business is essentially limiting your selling opportunities in order to protect their own commission. We believe business brokers have a clear fiduciary responsibility to maximize interest, offers, and speed on behalf of their seller clients, to ensure the highest price and best terms for any business owner who has entrusted them to sell their business.
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